The timing of real estate agent compensation in Pennsylvania hinges primarily on the successful completion of a real estate transaction. Typically, these costs, which cover the agent’s services in facilitating the purchase or sale of a property, are not payable until the closing of the transaction. An example would be that funds are disbursed to the real estate agents from the funds acquired from the sale of the property.
Understanding the point at which payment is required provides clarity and security for both buyers and sellers. This structure aligns agent incentives with a successful transaction, ensuring motivated representation throughout the process. Historically, this arrangement has been the standard practice in the real estate industry, fostering trust and accountability between clients and their agents.
