PSI Virginia Real Estate Practice Exam

Who can legally pay a real estate commission?

1. A buyer

2. Both a buyer and a seller

3. Only a real estate broker

4. A third-party investor

The correct answer is: Only a real estate broker

The correct answer is that both the buyer and the seller can legally pay a real estate commission. In real estate transactions, commissions are typically negotiated between the parties involved, which can include both buyers and sellers. This means that either party can agree to pay the commission based on their negotiation and contractual circumstances. While it is common for sellers to pay the commission to the listing agent, buyers may also contribute to the total commission through their own agents or negotiable agreements. This flexibility allows for various payment structures depending on the agreement made. Understanding this is crucial as real estate commissions are generally a reflection of the services rendered, and both parties involved in the transaction often play a role in determining the compensation for those services.