Who decides whether the seller must pay a real estate commission when the seller is a registrant?

• A. The buyer's broker
• B. The listing client
• C. The government agency
• D. The seller's employing broker

Answer: (D)

Commission terms are set in the listing agreement and are managed by the person who represents the seller in that agreement—the seller’s employing broker. This broker negotiates the contract with the seller, including whether the seller will pay the real estate commission and how that commission is shared with the buyer’s broker. The buyer’s broker doesn’t decide who pays, and the government agency doesn’t set or determine payment terms. Even if the seller is a registrant, the authority to determine commission obligations rests with the seller’s employing broker, who acts on behalf of the seller client.