What happens when a licensee purchases a property using a licensee buyout agreement?

When a licensee purchases a property using a licensee buyout agreement, the correct outcome is that the licensee does not collect a commission. This agreement typically involves a situation where the licensee is buying the property in order to facilitate a transaction for the seller or to assume ownership of a property that may have been difficult to sell on the open market. The commission structure in such agreements usually doesn’t apply in the same way as it would in a traditional sale. Since the licensee is effectively acting as a buyer in this scenario, rather than representing a client in a commission-based transaction, they do not earn a commission for the sale.

This is an important distinction in real estate practice, as commission structures can be quite complex and vary significantly depending on the specific circumstances of the transaction. In a licensee buyout, the focus is more on removing an obstacle for the seller rather than on the licensee acting as a facilitator for a transaction that would ordinarily trigger a commission.