What is the common term for the fee paid to a broker upon the sale of property?

The fee paid to a broker upon the sale of property is commonly referred to as a commission. This commission is typically a percentage of the final sale price of the property and serves as compensation for the broker's services in facilitating the transaction. It is agreed upon in advance and is usually paid at the closing of the sale. The commission incentivizes brokers to work diligently to market and sell the property, ensuring that both sellers and buyers receive a fair deal through expert guidance and negotiation.

The other terms presented refer to different concepts in real estate transactions. A down payment is the initial payment made by the buyer toward the purchase price of a property, representing their upfront investment. Earnest money is a deposit made by the buyer to demonstrate their serious intent to purchase the property, which can be forfeited if they back out of the deal without a valid reason. Closing costs encompass a variety of fees incurred during the closing process of a property sale, including title insurance, appraisal fees, and attorney fees, among others.

Understanding these distinctions is essential for navigating real estate transactions effectively.