In a brokerage engagement, which party typically pays the commission?

Prepare for the Georgia Real Estate Pre-Licensing Test with comprehensive flashcards and multiple choice questions, complete with hints and explanations. Set yourself up for success!

In real estate transactions, it is standard for the seller to pay the commission fees for the brokerage. This arrangement is established during the listing agreement, where the seller agrees to compensate the broker for their services once the property is sold. This practice aligns with the common understanding that the seller is the one benefiting from the sale of the property and, therefore, is responsible for covering the associated costs, including the commission.

While there are scenarios where a buyer may have to pay their own agent or where commissions might be negotiated differently, particularly in buyer's markets or in specific agreements, the traditional model in real estate is for the seller to bear this cost, making this answer the most accurate in the context of typical brokerage engagement scenarios.

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