The principle determining which real estate agent is entitled to a commission for a transaction hinges on identifying the individual whose actions led directly to the successful completion of the sale. This concept establishes a clear line of responsibility, rewarding the agent who initiates an unbroken chain of events that ultimately results in a willing buyer entering into an agreement with a willing seller. For example, if an agent introduces a property to a buyer who, after viewing it and without interruption or intervention from another party, decides to purchase the property, that initial agent is typically deemed the instrumental factor.
Establishing the aforementioned instrumental factor is crucial for fairly compensating real estate professionals for their efforts in marketing properties and connecting buyers with suitable listings. This safeguards agents’ investments of time and resources while incentivizing them to actively seek out potential clients and diligently pursue transactions. Historically, disputes over commission have highlighted the importance of clearly defining the role of each agent involved in a sale and meticulously documenting their interactions with the buyer. This minimizes ambiguity and provides a solid basis for resolving any conflicts that may arise regarding payment.
