Is A Real Estate Agent's Commission Still Due When The Sale Falls Through?

A significant portion of a real estate agent's income is commission. Typically, commission is only paid where a sale is completed. However, some courts have interpreted that a commission is still due and owing even if the transaction is not completed.

The Listing Agreement

As with any contract, it is important to read and understand the terms prior to finalizing the agreement. Hiring a real estate litigation lawyer can help you better understand the agreement. The listing agreement is a legally binding contract between the seller and the real estate brokerage, which sets out the terms for sale of the property. The listing agreement also typically outlines when the broker's commission is due.