What is required for a real estate agent to receive commission?

A real estate agent is entitled to receive a commission upon the successful completion of a sale or lease agreement. This means that the agent has facilitated the transaction to the point where it is finalized—either the property is sold, or a lease is signed. The completion signifies that the agent has fulfilled their primary duty, which is to represent one of the parties, typically in exchange for a commission based on the final agreed-upon price or terms.

While signing a listing agreement is important because it establishes a relationship between the seller and the agent, it does not directly result in a commission; it merely sets the groundwork for the possibility of a commission once a transaction is successfully concluded. Attending regular industry training sessions can enhance an agent's skills and knowledge but does not directly contribute to earning a commission. Lastly, securing financing approval for the buyer is a crucial step in the buying process, but it does not alone result in a commission unless it leads to a successful sale or lease. Thus, the key factor for earning commission lies in the finalization of a transaction.