When is a salesperson entitled to earn a commission?

A salesperson is entitled to earn a commission when the transaction closes because this is the point at which the sale is finalized, and the seller receives payment while the buyer takes possession of the property. Closing typically involves the completion of all agreed-upon terms in the purchase agreement and the legal transfer of property ownership. Until this point, the agreement between the parties does not constitute a completed sale, and therefore the salesperson's commission is contingent upon the successful closing of the transaction.

Other options, such as the signing of the listing agreement or the acceptance of an offer, do not guarantee that a sale will finalize, as circumstances could change before closing. Similarly, while finding a buyer is an important part of the process, it does not result in a commission unless the deal closes successfully.