Details of a Listing Contract

Real Estate Commission

In most areas there is a "customary" percentage that real estate agents and companies expect to earn as a commission. The percentage varies from region to region, and depending upon whether it is residential real estate or commercial real estate. However, just like anything else in real estate, this amount is negotiable. When completing the listing agreement or buyers agreement, you and your agent will agree on the amount of the real estate commission to be paid.

The Listing Contract and Buyers Agency contract also specifies when the commission is earned. This is important and you should pay close attention:

If a ready, willing and able buyer presents an offer that meets the listing price and terms, the agent has effectively earned the commission at that time. If a buyer presents an offer and you reach an agreement on price and terms through counter-offers, the agent has also earned his or her commission.

Sellers and or Buyers occasionally get cold feet. If this is going to happen to you - make sure you consider it Before you agree to the terms on any contract.

Once you have reach terms with either the Buyer or Seller, you have incurred two contractual obligations. One is to the Buyer or Seller and the other is to your Agent. If you should decide to cancel just because you've changed your mind about buying or selling -- the agent, legally has earned their commission according to the terms of most contracts and Licensed Real Estate Law. They will probably want to be paid.  Always consult an Attorney for advise before signing any contracts or legal documents.