Who is responsible for paying the sales associate their contracted commission upon closing a sales transaction?

The employing broker is responsible for paying the sales associate their contracted commission upon the closing of a sales transaction. In a real estate transaction, the broker acts as the intermediary who facilitates the transaction and has a contractual agreement with the sales associate regarding commission. When a sales transaction is successfully completed, the broker receives the commission from either the buyer, seller, or both, depending on the specifics of the agreement. The broker then disburses the appropriate amount according to the terms laid out in the employment contract with the sales associate.

The roles of the buyer, seller, and real estate agency do not directly involve the payment of the sales associate's commission in the sense of a contractual relationship for commission payment. While the seller typically pays the broker's commission as outlined in their listing agreement, it is ultimately the employing broker who is responsible for compensating their sales associates for their services. This structure ensures that the commission payment follows the business relationship established between the broker and the sales associate.