Which of the following is true regarding the commission structure of a broker?

The assertion that brokers are paid a commission only after a sale is completed is accurate and reflects a fundamental principle in real estate transactions. In Georgia and most other states, a broker earns a commission when a property sale successfully closes. This commission is typically calculated as a percentage of the sale price and serves as the broker's compensation for the services they provided, including marketing the property, negotiating offers, and facilitating the closing process.

The real estate commission structure is designed to align the broker’s incentives with the outcome of a sale, encouraging brokers to work diligently to finalize transactions. Until the sale is concluded, there is no commission paid, which safeguards both the broker and the client during the negotiation and selling process.

While it is also true that brokers can negotiate their fees and should ideally communicate fee structures to clients, the nature of when a commission is earned is a critical aspect of how brokers operate. This makes the understanding that a commission is only due upon the completion of a sale a foundational knowledge point in real estate practices.