When Does a Real Estate Agent in the Netherlands Actually Earn Their Commission?

The purchase agreement has been signed, the champagne is on ice and everyone is looking forward to completion at the notary’s office. Then, out of nowhere, everything falls apart. The buyer refuses to complete the purchase, the seller terminates the agreement and the property goes back on the market. Almost immediately, the same question comes up: does the seller still have to pay the real estate agent? Many people assume that an estate agent only earns their commission once ownership has officially transferred at the notary’s office. It sounds logical, but legally that is often not the case. In many situations, the agent is fully entitled to their commission, even if the transaction never reaches completion.

What Is a Real Estate Agent in the Netherlands Actually Hired to Do?

A real estate agent is hired to bring buyers and sellers together and to successfully negotiate a purchase agreement. The agent does not become a party to the contract but acts as an intermediary whose job is to help both parties reach an agreement.

Under Dutch law, brokerage agreements are governed by Articles 7:425 and following of the Dutch Civil Code. The legal starting point is straightforward: an agent is entitled to remuneration once their mediation has successfully resulted in an agreement between the parties. If no agreement is reached, there is generally no entitlement to commission. This is the familiar “no cure, no pay” principle.

In Practice, It Is Slightly More Complicated

Most residential real estate agents in the Netherlands, including members of NVM and Vastgoed Nederland, work under the General Consumer Terms for Estate Agency Services. These conditions supplement the statutory rules and, in several respects, are stricter than the law itself.

Under these terms, the agent’s assignment is only considered fully completed once the purchase agreement has become unconditional. In other words, it is not enough that both parties have signed the contract. The statutory cooling-off period must have expired and any contractual contingencies—such as a financing contingency or a building inspection clause—must no longer be capable of terminating the agreement.

Only then is the agent’s contractual assignment regarded as completed.

No Completion… Yet the Agent Still Gets Paid?

This is where many people get confused.

Imagine the purchase agreement has become fully unconditional. The cooling-off period has expired, all contingencies have been satisfied or waived, and the completion date has been scheduled with the notary.

Then, just before completion, the buyer refuses to cooperate. After following the proper legal procedures, the seller eventually terminates the agreement.

Many sellers believe the agent should not receive any commission because the sale never actually completed.

In most cases, that assumption is incorrect.

The agent has already achieved exactly what they were hired to accomplish: bringing about a binding and unconditional purchase agreement. The fact that one of the parties later breaches that agreement does not undo the work successfully performed by the agent. As a result, the agent will generally remain entitled to the agreed commission.

When Does a Real Estate Agent in The Netherlands Not Earn Commission?

Fortunately, there are also clear situations in which commission is not payable.

The Buyer Uses the Statutory Cooling-Off Period

Dutch law grants private buyers of residential property a statutory cooling-off period during which they may cancel the purchase without giving any reason.

If the buyer validly exercises this right, the purchase agreement never becomes unconditional. As a result, the agent’s assignment has not been completed and no commission is due.

A Contractual Contingency Is Properly Invoked

The same applies when the buyer validly relies on a contractual contingency included in the purchase agreement.

The best-known example is the financing contingency. If the buyer is genuinely unable to obtain a mortgage and correctly invokes this contingency within the agreed deadline, the purchase agreement is dissolved. Under the General Consumer Terms, the agent is then generally not entitled to commission.

The Agent Has Seriously Failed to Perform

There is another important exception.

If the client can demonstrate that the transaction failed because the real estate agent seriously neglected their professional duties or breached their contractual obligations, the agent may lose their right to commission altogether.

Fortunately, such situations are rare, but they underline the importance of professional conduct and proper client representation.

Earning Commission Is Not the Same as Getting Paid

Another point that often causes confusion is the difference between earning commission and receiving payment.

These are two separate legal concepts.

The right to commission arises once the assignment has been successfully completed under the applicable agreement and terms of engagement. In practice, however, payment is often settled through the civil-law notary on the completion date.

If completion ultimately does not take place—even though the agent has already earned the commission—the fee may still become payable once it is clear that the purchase agreement will definitely not be performed.

What If the Seller Withdraws the Property from the Market?

Many homeowners believe they can simply cancel the listing agreement, stop working with the agent and avoid paying any commission.

That is not necessarily true.

The listing agreement and the applicable terms and conditions determine the financial consequences of terminating the assignment prematurely. Depending on those contractual arrangements, the agent may be entitled to reimbursement of costs already incurred or even to full commission if the property is later sold to a buyer originally introduced by the agent during the term of the agreement.

That is precisely why both agents and homeowners should carefully read the listing agreement before signing it.

The Most Important Rule to Remember

Whether a real estate agent is entitled to commission is not determined solely by whether the property is eventually transferred at the notary’s office.

The key question is whether the agent has successfully completed the assignment they were hired to perform.

If the purchase agreement has become unconditional, the statutory cooling-off period has expired and all contractual contingencies have lapsed or been fulfilled, the agent will generally have earned their commission—even if one of the parties later refuses to complete the transaction.

On the other hand, if the agreement is lawfully cancelled during the cooling-off period, dissolved because of a valid contractual contingency, or the transaction collapses due to the agent’s own professional shortcomings, the right to commission will usually not arise.

A Practical Tip for Real Estate Agents

Many disputes over commission can easily be avoided by having a thorough understanding of your own listing agreement and the applicable terms and conditions. Those documents often determine much more precisely than the law itself when your assignment has been completed, when commission becomes payable and which exceptions apply.

Knowing your own contractual framework is one of the simplest ways to prevent unnecessary discussions with clients and to protect both your business and your professional reputation.