How is commission typically paid to the broker after a sale?

Commission is typically paid to the broker at closing from the proceeds of the sale because this method ensures that the payment is made once the transaction is finalized and ownership of the property is transferred. At closing, all financial aspects of the sale, including the distribution of the commission, are settled. This practice aligns the broker's compensation with the completion of their services, which include facilitating the transaction, negotiating terms, and ensuring compliance with legal requirements.

Other payment methods, such as monthly payments from the seller or quarterly payments from the buyer, are uncommon in real estate transactions as they do not accurately reflect the nature of the broker's role, which culminates at the closing of the sale. Additionally, offering commission upon signing the contract could lead to complications if the sale does not proceed, thereby making the arranged commission payment premature.