Key takeaways:
- Most agents only get paid when a sale closes: If no home is bought or sold, you typically owe nothing.
- Your contract is key: Certain clauses can require payment if you back out after an accepted offer.
- New NAR rules add transparency: Agents must disclose fees upfront, so you’ll know exactly when commissions apply.
You’ve spent weeks working with a real estate agent to find your next home or sell the one you have. Then life changes: you decide not to move forward. Now you’re left asking the big question, do you have to pay a real estate agent if you don’t buy or sell a house?
With new NAR and MLS rules, updates aim to make real estate fees clearer and more competitive, but the details of your agreement determine when – or if – any payment is owed if plans change.
In this Redfin guide, we’ll explain when you may – or may not – owe your agent money if a deal falls through. We’ll cover how real estate agents get paid, and what the new rules mean for your contract. Whether you’re touring homes in Seattle, WA, or listing your property in Austin, TX, here’s what you need to know.
What happens if you don’t sell or don’t buy – do you still pay?
If your home doesn’t sell or you decide not to buy, you’re probably wondering whether you still owe your real estate agent. In most cases, you aren’t required to pay a commission.
Listing agreements include a “no sale, no fee” clause, meaning the agent only earns a commission once the sale closes. However, there are exceptions based on what’s agreed to in writing.
As a seller, if you accept an offer and later back out, your contract could require you to pay a commission if it specifies that obligation once an offer is accepted.
For buyers, the same logic applies. If you worked with an agent but never purchased a home, you generally won’t owe a commission – unless your buyer’s agency agreement states otherwise. Some contracts outline circumstances where a buyer may owe fees if they back out after an offer is accepted or switch to another agent mid-process.
| Scenario | Do you owe an agent? | Key factor |
| Seller lists home, home doesn’t sell | Usually no | Listing agreement says “if sale, then commission” |
| Seller accepts offer, then backs out | Possibly yes | You triggered “closing” or accepted offer clause |
| Buyer works with agent, then never buys | Usually no | Depends on buyer’s agency contract |
| Buyer makes offer, gets accepted, then backs out | Possibly yes | You caused the breach or prevented closing |
Bottom line: Real estate agents typically earn a commission only after a sale closes, but your written agreement governs all exceptions. Always review your contract carefully and consult your agent or a real estate attorney if you’re unsure before deciding to pause or cancel a transaction.
What the new NAR rules mean for buyers and sellers
As of August 2024, new NAR policies and MLS updates make real estate compensation more transparent. Under NAR policy, agents must disclose their compensation terms upfront – typically through a written agreement before showing homes. This ensures buyers and sellers understand exactly how and when agents get paid.
The policy also clarifies that buyers must have a written agreement with their agent before touring homes, but this doesn’t obligate them to complete a purchase if their plans change.
Historically, it was common for the seller to pay both agents’ commissions from the sale proceeds. Under the new rules, buyers now negotiate their agent’s compensation directly in writing and may request that the seller cover some or all of it as part of their offer. Sellers can still agree to pay the buyer’s agent, but those arrangements are now handled outside of the MLS and must be documented in writing between the parties.
Bottom line: If you don’t buy or sell a home, you typically don’t owe a commission – but your contract will spell out any exceptions. Always read the fine print before signing.
Practical scenarios: When you do (and don’t) have to pay a real estate agent
Real-world situations can get complicated fast, especially when you’re unsure whether you owe your agent anything. Here’s how common scenarios play out and what steps to take to protect yourself.
1. Seller lists a home, but it doesn’t sell
If your listing period ends and your home doesn’t sell, you typically won’t owe a commission. Most contracts follow a “no sale, no fee” structure, meaning the agent only earns a commission when the sale closes.
Action step: Review your listing agreement and confirm how to formally end it in writing. Review your contract for any renewal clauses before relisting with another agent.
2. Buyer signs an agency agreement but doesn’t buy
If you’ve signed a buyer’s agency agreement and the market shifts or you pause your search, you usually don’t owe a commission – unless your contract says otherwise.
Action step: Review your real estate agent agreement for terms about early termination or exclusivity.. If you’re still browsing, avoid signing an exclusive agreement until you’re ready to buy.
3. Buyer backs out after an offer is accepted
Once an offer is accepted, things get more complicated. If you cancel without a valid contingency, your contract may require payment of the agreed-upon commission or reimbursement of certain costs..
Action step: Revisit your contract and consult your agent or an attorney before withdrawing an accepted offer. Keep all communication in writing.
4. Seller refuses to pay a buyer’s agent commission
A seller can choose whether to offer compensation to a buyer’s agent, subject to brokerage policies and applicable state laws. If the seller doesn’t offer payment, the buyer and their agent can negotiate how the agent will be compensated, either through the buyer’s offer or a separate agreement.
Action step: Discuss commission expectations early. Ask your agent to clarify who will pay the buyer’s agent in your situation and whether that cost can be negotiated into your offer.
What to check in your contract before you sign
Whether you’re buying or selling, the answer to do you have to pay a real estate agent ultimately depends on what’s written in your real estate agent contract. Every agreement outlines different obligations, so it’s essential to read the fine print before signing.
Here are a few key provisions to review:
- Duration or term of the agreement: How long you’re committed to working with that agent. If your home doesn’t sell or you pause your search, make sure you can easily end or renew the contract.
- Fee or commission structure: Most agents earn a percentage of the sale price, but some brokerages use a flat fee or hourly rate. Confirm when payment is due (typically at closing) and whether you owe anything if there’s no sale.
- “Ready, willing, and able” buyer clause: Some contracts include a clause stating that a commission may be due if your agent introduces a qualified buyer and you choose not to sell. This clause can trigger payment even if the transaction doesn’t close, so read it carefully and ask for clarification if needed.
- Termination or expiration clauses: Understand what happens if you cancel early, list with another agent, or let the contract expire. Some agreements automatically renew unless you give notice.
Pro tip: Always ask for a written agency agreement that clearly states whether you owe your agent any fees if the sale doesn’t close.
Do you have to pay a real estate agent?
In most cases, you don’t owe a real estate agent if you don’t buy or sell a home, but your contract decides. Commissions are usually earned only at closing, with some exceptions if you back out or switch agents. Thanks to new NAR rules, fees are now disclosed upfront, giving buyers and sellers more clarity before committing.
The post Do You Have to Pay a Real Estate Agent If You Don’t Buy or Sell a Home? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
