Essential Things To Know Regarding Real Estate Agent Commission Payment Terms
There are a dozen real estate agents that are licensed in this country. Buyers an agent is a person that represents the buyer when one is purchasing real estate property. The duties of a real estate agent is to find the property and negotiate the prize on behalf of the homeowner. Some people are yet to figure out on who is supposed to pay the buyers agent. Therefore there is need to understand the real agent buyers commission terms and rights.
Commission is the money that the agent receives from the sale or purchase from the total prize of the property as a result of the services rendered. A broker is the person that employs the agent. Therefore the buyer works with the agent through the permission of a broker. It is contrary to the law for real estate agents to work independently. Thus the buyer pays the broker and then the broker pays the agent. However, real estate agents are independent professionals that place their licenses under the brokers. Some agent are employees that work permanently for the brokers.
The process of commission payment is a bit complex. The reason is because there are many people that are involved in the process of purchasing real estate property. This is the chain of payment that is involved. The the seller of the property pays sellers broker. Secondly, the sellers broker then pays commission to the sellers agent. The the sellers broker also funds buyers broker. And finally the buyers broker in return pays the agent. If at all two agents are involved there is need to find the procuring cause. The agent that writes the offer is the one that gets the commission.
There is also another procedure that is referred as the deal agency. This happens when the same agent represents both the buyer and the seller of the property. In this case, the agent receives all the pay. Some states are against the dual agency. Therefore before hiring the services of an agent, there is a need to ensure that the companies are working independently. Working with the same company might bring conflicts since one’s interest are not represented well considered that it is the corresponding agency.
There are many things that affect the commission that one gets. The amount may be 3-6% of the price of the property. The cash is then divided between the seller’s brokerage and the buyer’s brokerage. There are also times that the seller chooses to sell the property by themselves without involving the services of a real estate agent. In this scenario the seller should tag the house for sale by owner buyers commission agent.