Share:
In commercial real estate, agents get paid in multiple ways, but recent legal changes are shaking things up. Traditionally, commissions were paid at closing, primarily by the seller. However, with the recent National Association of Realtors (NAR) lawsuit, this isn’t always the case anymore. So, what does this mean for buyers and sellers?
How Do Commercial Real Estate Commissions Work?
“Seller-Paid Commission” is the most common structure, where the seller compensates both the listing agent and the buyer’s agent. This is typically pre-negotiated in the listing agreement.
As for “Buyer-Paid Commission, ” with the NAR ruling, sellers are no longer required to pay a commission to the buyer’s agent. In these cases, buyers may sign an agency agreement, committing to pay their agent’s commission directly. This ensures that they still receive full representation throughout the transaction.
Why Does This Matter for Buyers?
Some may assume that if the seller isn’t paying, it makes the transaction cheaper for buyers—but that’s not necessarily true. Instead, it shifts responsibility and negotiation power, making it crucial to work with an experienced agent who will protect their interests from start to finish.
Navigating these changes in commercial real estate can be tricky. Whether you’re a buyer or seller, understanding how commissions work ensures you’re making informed decisions.
Do you have questions about commercial real estate and/or investing? Or are you looking for commercial properties in New York City and/or Atlanta? Let’s connect!
