Who is generally responsible for paying the real estate commission?

The vendor, or seller, is typically responsible for paying the real estate commission. This practice is grounded in the convention of real estate transactions where the seller engages the services of a real estate agent to help facilitate the sale of their property. The commission is often calculated as a percentage of the sale price and is included in the list of closing costs.

When the property is sold, the agent receives the commission from the vendor as compensation for their services, which include marketing the property, negotiating offers, and guiding the transaction through to completion. This arrangement encourages sellers to work with agents to ensure a successful sale, while buyers usually do not bear this direct burden in the typical scenario.

Other entities involved in the transaction, such as real estate agencies or attorneys, do not directly cover the real estate commission. Real estate agencies are the firms that employ agents and receive the commission but they do not pay it out; rather, they are the recipients of the commission from the vendor. Attorneys may assist in facilitating the transaction but do not have a direct financial responsibility for paying the commission either.