. . . Real Estate Law Lecture Notes: Contracts . . . . ..
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Real Estate Brokers:
Broker: the broker is licensed. Most often, the broker wil have licensed agents
working for the broker, all of whom can represent sellers in procuring sales.
Payment for the broker/agent services is in the form of a commission, a percentage
of the price in the contract for sale, typically, 6 or 7 per cent.
Sales
agent contracts generally specify that the broker/agent earns a commission
once a willing and capable buyer and the seller are matched up, even if for
some reason the deal doesn't go through. The contract is geneally a listing
agreement, which gives the broker/agent the exclusive right to list the property,
and to procure the cause of the sale within time agreed.
The broker/agent
is responsible to the seller, to get the best price for the seller. Even if
the buyers are going through an agent, the agent is not obligated to get them
the lowest price. The "buyer's agent" and the listing agent will
split the commission on the listing contract between them. It is the seller
who is paying the commission.