Paying the Realtor

Michna Law Group receives tons of common questions pertaining to real estate law. Today, we'd like to take a look at another party in the home closing transaction: the realtor.

With closing costs and other associated fees mounting on both sides, who typically pays the realtor?

Usually, in a home closing, it is the seller's responsibility to pay both the listing agent and the selling agent. Sometimes, both agents can, in fact, be the same individual.

The reason for this stems from common agency law. This means that both the listing and selling agent are working on behalf of the home seller. On occasion, the prospective home buyer may hire a realtor to work exclusively for them. In this case, it would be the home buyer's responsibility.

Generally, realtor commissions reflect 6% of the property's sales price. But with virtually everything in real estate, this, too, may be negotiable.

In either case, when finalizing a real estate sale, both the buyer(s) and the seller(s) must carefully review the contract to determine whether the realtor is charging either party an additional administrative or processing fee (typically between $150.00 to $400.00).

For more questions pertaining to real estate law, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.