When does a real estate agent get paid?

Asked by Abigail Bussard, Oak Park, IL Tue Feb 28, 2012

Specifically - when does a real estate agent receive a check for her/his commission? Do they generally cut a check cut to their brokerage at the closing? Or does the listing agent have to send it? Thanks.

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Tamara Schus…, Agent, Naperville, IL
Tue Feb 28, 2012
The agents get paid when the home closes. This is on the HUD closing statement. The check is made out to their company ( not the agent personally) and then split accordingly to the agents contract at their office. The agent then gets paid from their office. An agent is considered self employed so they will then be responsible for paying state and federal taxes and social security.
1 vote
David Field, Agent, Naperville, IL
Tue Feb 28, 2012
In Illinois, the Listing Agent and the Buyers Agent both get paid upon closing of escrow. The Buyers Agent commission is paid by the home owner and taken out as a portion of the Listing Agents commission.

The Listing Agent is obligated to represent the sellers best interest (and therefore not the buyers!) so a home buyer should seriously consider having a Buyers Agent represent their interest in the transaction...and since the commission is paid by the home owner and not the home buyer, hiring a Buyers Agent costs the home buyer nothing.

If you are currently not represented, please contact me at david@homefieldrealtors.com and I can explain my Home Buyer Program in detail with you...thank you.

David Field
Managing Broker / Owner
Home Field Realtors of Naperville
1 vote
Ryan Moran, Agent, Naperville, IL
Mon Mar 5, 2012

The seller pays the total commission to the listing broker and the listing broker pays the buyer's broker. Both brokerages will usually be given the commission checks at the closing but there are some listing brokerages that will issue a commission check to the buyer's brokerage a couple days after the close. How the commission is split between the broker and the agent varies depending on the private agreement between those two parties.

Hope that helps,

Ryan Moran
Option Realty Group
0 votes
Michele Nixon, Agent, Naperville, IL
Tue Feb 28, 2012
I've given a "thumbs up" to several of my colleagues answers that are relevant to Illinois. The answers from out-of-state agents are true for their states but, may not be for ours.

Michele Nixon
0 votes
Nathan Wolf, Agent, Charlotte, NC
Tue Feb 28, 2012
Generally this is handled by the attorney on the HUD-1 Closing Statement.

When the deed is recorded at the county courthouse. Everyone gets paid by check from the Attorney.

However, it is acceptable to pay the agent directly before closing, and then it is reflected on the HUD-1 Closing Statement as POC (Paid Outside of Closing).

If this answered your question, please give me a "THUMBS UP" or "BEST ANSWER"-- thanks!
Web Reference:  http://www.natewolf.com
0 votes
George Mered…, Agent, Naperville, IL
Tue Feb 28, 2012
You walk away with a home, the agent walks away with a check and hopefully the feeling that he or she provided value throughout the process of buying or selling the home. That's how I sleep at night. Please give me a call or email if you need anything.
0 votes
Marianne Hof…, Agent, Naperville, IL
Tue Feb 28, 2012
Hi Ally,

Your agent will be given a check at closing. The agent takes the check back to their office and in my case a check (minus the broker's fees) will be disbursed to the agent while he/she waits if the office staff is not too busy. In almost all cases the buyer's agent is paid by the seller.

Please feel free to contact me if I can be of further help.

Best wishes,
Marianne Hofmann
Charles Rutenberg Realty of IL
Naperville, IL
0 votes
Alan May, Agent, Evanston, IL
Tue Feb 28, 2012
In Northern Illinois, it's common for a check to be issued to both agencies at the closing table. Those checks, of course, go back to the company, and then they disburse from those to the agent. That can take several days to a week, depending on the company.
0 votes
is that the normal turn around for most companies? My company takes a week to three weeks after I personally deposit the commission check into the Managing brokers account before I can my payment.
Flag Tue Apr 25, 2017
John Wilt, Agent, Wheaton, IL
Tue Feb 28, 2012
Usually, both brokers get paid at closing. Sometimes, listing companies want to run the entire comission through their bookkeeping department as a way of stating they had $xxx amount of revenue (and then cut a check to the cooperating broker). This is misleading since the commission due the cooperaing broker has not been taken out of the equation. The trend we see now is that both brokers get paid at the closing and that of course shows on the HUD statement as well. Your agent then takes that check back to his/her broker and waits a day a two before they get their 'split'. Only Brokers can get paid a commission. The Agent then gets paid by the Broker.
If I can help with anything else let me know. -John Broker/Owner RealStar Reatly
0 votes
Anthony Cava…, Agent, Jolier, IL
Tue Feb 28, 2012
It can be done either way. The vast majority of the time, it is paid out of escrow to each brokerage company at closing. However, I have had my brokerage paid by the listing brokerage after closing, which is also perfectly acceptable. After the brokerage is paid, the agent is then paid by the broker.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Feb 28, 2012
At the closing the funds to pay off the old loan as well as the commissions of the selling and buyers agents are dispersed to the old bank and the offices of the two agents (if there were 2 offices involved and not just one). The office broker then will cut a check to their agent for the agreed amount they split any commission. Agents are paid by their broker after the closing.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Feb 28, 2012
Generally the agent gets paid at closing out of the proceeds of the sale; all fees paid to the agent pass through his/her broker, as he/she determines how each agent is compensated.
0 votes
Debra Weiss, Agent, Newton, MA
Tue Feb 28, 2012
In Massacusetts, a Real estate agent may recieve a commission check at Closing, however, the check may not be deposited until the Closing documents have been recorded.
0 votes
Heather Wrig…, Agent, The Dalles, OR
Tue Feb 28, 2012
Hello Ally

The agent gets paid when the transaction funds and records. The check comes from the title company. The closing coordinator for the company sends an escrow demand for commission and checks are disbursed from their. Hope that helps.
0 votes
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