Colorado Sales License Practice Test

A real estate agent typically receives a commission upon the successful closing of the property sale. This is the point at which the transfer of ownership is finalized, and all necessary documents are signed, including deed transfers and any other closing paperwork. The commission is usually a percentage of the sale price and is paid out of the proceeds from the transaction.

The sale closing is a pivotal moment because it is only then that the agent's efforts in marketing the property, negotiating terms, and facilitating communication between parties culminate in a successful transaction. This means the agent has fulfilled their responsibilities and earned their commission based on the final agreement and successful completion of the sale.

In contrast, receiving a commission at the moment of signing the listing agreement, marketing the property, or when a buyer submits an offer does not represent the completion of the sale. These are important steps in the selling process, but they do not result in payment until the actual sale is completed.