Who Pays Commission in Dual Agency?

Chris at Hauseit (https://www.hauseit.com) goes over who is responsible for paying the real estate broker commission in the case of dual agency, where one agent represents both the buyer and the seller.

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In the case of dual agency or any other situation, it is typically the seller who's responsible for paying the real estate broker commission. Real estate commission is a traditional seller closing cost, and is usually a percentage of the sale price.

Often times, the commission percentage you hear quoted is 6%, which can be quite significant for higher priced luxury homes which Hauseit is known for specializing in. This commission gets paid in traditional listing arrangements regardless of what happens.

If the buyer has a buyer's agent, then the seller's agent typically co-brokes (i.e. splits) the commission per local MLS rules, often 50/50. If the buyer chooses to go unrepresented, then the seller's agent doesn't have to co-broke and can luckily keep the entire commission.

In the case of dual agency, the outcome is exactly the same as if the buyer simply chooses to be unrepresented (and the seller's agent remains a seller's agent vs dual agent) and the seller's agent gets to keep all of the commission because there is no outside broker to split commission with.

Watch our video to learn more about dual agency, and when it makes sense, as well as why it often makes more sense for the seller's agent to remain a seller's agent.

Note that in some states like Florida, Realtors by default are "transaction brokers" without a fiduciary duty to either party. This is done to minimize the chances of lawsuits because buyers and sellers claim to be confused about who the broker is representing.
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https://www.hauseit.com

Save money when buying, selling and renting real estate in New York and Florida with Hauseit (https://hauseit.com). Available in NYC, Long Island, the Hudson Valley and South Florida. Est 2014.

Hauseit Group LLC, Licensed Real Estate Corporation
Tel: (888) 494-8258 | https://www.hauseit.com
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