Important points:
Most agents only get paid when a sale closes. If the home isn’t sold, you generally don’t owe anything. Contracts are important. If you accept and then decline an offer, certain terms may require you to pay. New NAR rules increase transparency: Agents must disclose their fees upfront so you know exactly when they will be applied.
You’ve been working with a real estate agent for weeks to find your next home or sell the one you own. And life changes. You decide not to move forward. Now you have a big question. Do I have to pay a real estate agent if I don’t buy or sell a home?
The new NAR and MLS rules aim to make real estate commissions clearer and more competitive, but the specifics of your contract will determine when or if you will be required to pay if your plans change.
In this Redfin guide, we’ll explain when you’re owed money to your agent, or when you’re not paid, if a deal falls through. Learn how real estate agents get paid and what the new rules mean for your contracts. Whether you’re touring a home in Seattle, WA or listing real estate in Austin, TX, here’s what you need to know.
What happens if I don’t sell or buy? Do I still pay?
If your home doesn’t sell or you decide not to buy, you’re probably wondering if you still owe your real estate agent. In most cases, you won’t have to pay any fees.
The listing agreement includes a “no sale, no commission” clause, which allows the agent to earn a commission only if the sale closes. However, there are exceptions based on written agreements.
As a seller, if you accept an offer and later withdraw, you may be required to pay a fee if the contract specifies your obligations after the offer is accepted.
The same logic applies to buyers. If you’ve worked with an agent but have never purchased a home, you generally don’t have to pay a commission unless your buyer’s agent agreement states otherwise. Some contracts outline situations in which a buyer may pay a commission if the buyer declines after an offer is accepted or switches to another agent midway through the process.
Scenario Do you owe an agent?Key factors Seller lists a home, but the home doesn’t sell Usually no The property contract says “commission on sale” Seller accepts the offer and then withdraws Probably yes You triggered a “closing” or accepted offer clause Buyer works with the agent and then never buys Usually no Depends on the buyer’s agency agreement Buyer makes an offer, is accepted, then withdraws Possibly Yes You caused a violation or prevented closing
Bottom line: Real estate agents typically receive their commission only after a sale is closed, but all exceptions are governed by the written contract. Before deciding to suspend or cancel a transaction, always review the contract carefully and consult your agent or real estate attorney if you have any questions.
What the new NAR rules mean for buyers and sellers
Starting in August 2024, new NAR policies and MLS updates bring even more transparency to real estate coverage. Under NAR policy, agents must disclose compensation terms upfront. This is usually done through a written contract prior to showing the home. This allows buyers and sellers to understand exactly how and when agents will be paid.
The policy also makes clear that buyers must obtain a written agreement with the agent before visiting a home, but this does not obligate them to complete the purchase if plans change.
Historically, it was common for the seller to pay both agents’ commissions out of the sales proceeds. Under the new rules, buyers can now negotiate agent compensation directly in writing and require sellers to cover some or all of it as part of their offer. The seller can still agree to pay the buyer’s agent, but that arrangement is 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 generally don’t have to pay any fees, but your contract will spell out exceptions. Always read the fine print before signing.
Practical scenario: When you need to pay your real estate agent (or when you don’t)
Real-life situations can get complicated quickly, especially when you don’t know if you owe your agent something. Here’s how common scenarios play out and what steps you should take to protect yourself.
1. The seller listed the house but it did not sell.
If your home doesn’t sell at the end of the listing period, you generally don’t have to pay any fees. Most contracts follow a “no sale, no commission” structure, where the agent only receives a commission when a sale is completed.
Action step: Review your listing agreement and find out how to formally terminate it in writing. Before relisting with another agent, check your contract for renewal clauses.
2. The buyer signed the agency agreement but did not make the purchase.
If you sign a buyer agency agreement and the market changes or you pause your search, you generally won’t have to pay a fee unless the agreement says otherwise.
Action Step: Check your real estate agent’s contract for early termination and exclusivity clauses. If you’re still browsing, don’t sign the exclusivity agreement until you’re ready to buy.
3. Buyer withdraws after offer is accepted
Once the offer is accepted, things get even more complicated. If you cancel without a valid contingency, your contract may require payment of agreed fees or reimbursement of certain costs.
Steps to take: Review your contract and consult your agent or attorney before withdrawing an accepted offer. All communications must be in writing.
4. If the seller refuses to pay the buyer’s agency fee
Sellers may choose to provide indemnification to Buyer’s agents in accordance with their brokerage policies and applicable state law. If the seller does not offer to pay, the buyer and its agent can negotiate how the agent will be compensated, either through the buyer’s offer or a separate agreement.
Action step: Discuss fee expectations early. Ask your agent to clarify who will be paying the buyer’s agent in your situation and whether that fee can be negotiated and worked into your offer.
Things to check in the contract before signing
Whether you are buying or selling, the answer to whether you need to pay a real estate agent ultimately depends on what is written in your real estate agent’s contract. Each contract has different obligations, so it’s important to read the fine print carefully before signing.
Here are some important provisions to check.
Term or term of contract: The period of time during which you commit to cooperating with that agent. Make it easy to terminate or renew your contract if your home doesn’t sell or you pause your search. Fee or commission structure: Most agents take a percentage of the sale price, but some brokerages use flat fees or hourly fees. Find out when your payment is due (usually at the end of the deal) and if you owe it if there are no sales. “Ready, willing, and able” buyer clause: Some contracts include a clause that says your agent will introduce you to a qualified buyer and you may be paid a commission if you choose not to sell. This clause can trigger a payment even if the deal doesn’t close, so read it carefully and ask for clarification if necessary. Termination or expiration clauses: Understand what happens if you cancel early, sign up with another agent, or let your contract expire. Some contracts renew automatically unless we notify you.
Pro tip: Be sure to ask for a written agency agreement that clearly states whether the agent is obligated to pay a commission if the sale doesn’t go through.
Do I have to pay a real estate agent?
In most cases, you are not obligated to pay a real estate agent unless you buy or sell a home, but it is determined by your contract. Commissions are generally earned only on closing, with some exceptions if you withdraw or change agents. Thanks to the new NAR rules, fees are now disclosed upfront, giving buyers and sellers more clarity before committing.
