Broker engagement terms determine when a commission is earned, which is the usual dispute.
Exclusive right to sell or lease. The broker earns a commission on any transaction during the term regardless of who procures it. Exclusive agency excludes owner-procured transactions, and open listings pay only the procuring broker.
When earned. On a fully executed agreement, on closing, or on the landlord accepting a tenant. Tying the commission to closing rather than to signature aligns the broker with completion.
Procuring cause. Where more than one broker claims, the analysis is who set in motion the chain of events leading to the transaction. Registration procedures for prospects reduce these disputes substantially.
Tail or protection period. A commission payable after termination on a transaction with a party the broker introduced during the term. Negotiate a defined list of protected parties delivered on termination, and a reasonable duration.
Cooperating brokers. How the commission is split, and whether the owner has any obligation to a broker representing the other side.
Renewals and expansions. Whether the broker is paid on renewals of a lease it procured, which is frequently the largest number and frequently unaddressed.
Licensing. An unlicensed person cannot recover a commission in most states.