The agent has earned the commission by finding the house, doing the legwork, and countless things that happen below the radar of their client, including the the agent's time. Also, that commission goes to the BROKER, not directly to the agent (generally) and the agent gets a cut. A seller's agent does the same. That's when and why the commission is earned. In the event of the contract falling through then perhaps THAT commission falls into unearned territory and now they have to earn a NEW commission by getting you into a new deal.
Yes, I can understand the confusion. This thread has taken multiple different turns down a few rabbit holes.
Here’s where we are now:
I am the buyer who has entered into a contract on a home and is asking if I still owe a commission if the deal falls through.
Do a Google search for “commission earned if deal falls through”. I am getting conflicting opinions on this and I don’t think I’m that unreasonable about being confused with the different answers.
I also am concerned about what happens when I continue the buying and selling process with a new broker. Hence the follow up questions about procuring cause.
Totally on the same page. If I do something to screw up the deal, I’m in trouble. Not going to do that.
But what if the deal Falls through because it’s a contingent contract and we can’t get a high enough offer to sell our home. Can we get a new broker and do the same deal after our representation contracts on the buy and sell side expire. That’s the last question, to which adjusterjack said that YES, I could do that. But I read about procuring cause and it seems to me that no matter what, the first agent could claim they were the procuring cause and still claim to be owed the commission.
In my experience when a house is listed the terms of the commission rate is already established in the listing contract. The escrow company cannot deviate from that rate. If the OP thinks he can save money, stiff his realtor, or be paid the buying broker's commission he has another thing coming. The escrow company can typically only pay brokers that commision. Then brokers will pay their realtors. Any deviation from that would likely require authorization from all five of the other parties.