Commission Agreement California Real Estate
If you`re considering working with a real estate agent or broker in California to buy or sell property, it`s important to understand the commission agreement that typically governs how they get paid.
A commission agreement in California real estate is a contract between the agent or broker and the buyer or seller of the property. It outlines how much the real estate professional will be paid for their services, and who is responsible for paying the commission.
Most commission agreements in California real estate are based on a percentage of the sale price of the property. The commission rate is typically negotiated between the agent or broker and the client, and can range from 2.5% to 6% or more.
In California, the seller is usually responsible for paying the commission to the agent or broker. This amount is typically deducted from the seller`s proceeds at the close of escrow. However, in some cases, the buyer may agree to pay a portion of the commission or pay for their own representation.
It`s important to carefully review the commission agreement before signing, and to make sure you understand the terms and conditions. Some commission agreements may include additional fees or charges, such as marketing fees or transaction fees, so it`s important to ask questions and clarify any misunderstandings.
If you`re unhappy with the services provided by your real estate agent or broker, it`s important to carefully review the commission agreement to understand your options for terminating the agreement or pursuing a complaint.
In summary, a commission agreement is an important part of any real estate transaction in California. It can help ensure that the agent or broker is paid for their services and that the buyer or seller understands the costs involved in the transaction. Be sure to carefully review the agreement before signing, and don`t be afraid to ask questions or negotiate the terms.