When will a broker usually receive the sales commission from the seller?

A broker typically receives the sales commission after the transaction is closed because this is the point at which the seller has fulfilled their obligations under the purchase agreement, and the buyer has officially taken ownership of the property. Closing is the culmination of the sales process, which often includes the settlement of all financial transactions, including the payment of commissions to brokers involved in the sale. This timing ensures that the broker is compensated for their services only after the successful completion of the sale, reflecting the completion of the transaction and the successful work they have done in bringing the buyer and seller together.

Choosing other options would suggest that the commission is paid at stages that do not guarantee a completed sale. For instance, receiving payment upon signing the contract or upon listing the property does not account for potential issues leading to a failed transaction. Likewise, an offer from the buyer does not equate to a completed sale, thus making the closing stage the definitive point for commission payment.