It happens more often than people imagine. Your home is on the market with a standard listing agreement, usually for a 6% commission split between the listing real estate agent and the buyer’s agent. Then, unexpectedly, you find a buyer yourself. Maybe it’s a friend of a friend, a neighbor’s cousin, or someone who happened to walk by your property and knocked on the door after seeing a for sale sign. The buyer wants the house and you want to sell it. So you tell your listing agent. That’s when some sellers feel a sudden jolt of frustration: why does the listing agent still want a 5% commission?

On the surface, it may seem unfair. If the real estate agent didn’t bring the buyer, why should they receive anything close to the full fee? But in Mexico’s real estate system, the answer has less to do with who found the buyer and everything to do with the structure of the transaction, the legal responsibilities involved and the significant amount of professional work that follows the moment an interested buyer appears.

How selling your home works in Mexico

This is not an issue of an agent collecting a fee for doing nothing. It is an issue of the agent stepping into the role of both the seller’s representative and the buyer’s representative at the same time. That remaining 5% is the fee that covers both sides of the transaction, along with all the legal and logistical responsibilities that come with it.

The starting point is understanding how listing agreements work in Mexico. Most professional real estate agencies use an exclusive right-to-sell contract. This type of agreement, widely used across the country, states that the agent is owed a commission regardless of who finds the buyer. The reasoning is simple: the listing agent invests in photography, marketing, online syndication, signage, professional networks and MLS exposure. They are also the person responsible for coordinating the transaction from the moment a buyer appears until the closing is complete.

In an ordinary transaction, where another agent brings in the buyer, the 6% commission is split — typically 3% to the listing agent and 3% to the buyer’s agent. But when the seller finds the buyer, the agent often reduces the fee to 5%. That reduction reflects savings from not having to split the commission; it is not a penalty or a bonus. It is simply the amount required to cover both sides of the transaction.

All the work that goes into facilitating the sale

What many sellers don’t realize is that finding the buyer is only a small part of the process. Most of the work — and the bulk of the responsibility — begins after a buyer is identified. At that point, the listing agent steps fully into the role of the seller’s representative, managing the transaction from beginning to end. This includes verifying documents, coordinating with attorneys and the notary, negotiating terms, ensuring compliance with anti-money-laundering rules, handling escrow and making sure all deadlines are met.

On the seller’s side alone, the agent performs extensive work. Before an offer even appears, the listing agent is responsible for pricing strategy, creating a competitive market analysis, arranging professional photography, writing the property description, uploading the listing to the MLS, coordinating showings, filtering inquiries, providing feedback from potential buyers and marketing the property across various platforms. These steps require time, expertise and often out-of-pocket expenses.

Once the seller has a buyer, the responsibilities intensify. The agent drafts or reviews the offer, advises the seller on the terms, negotiates on their behalf, verifies documents such as the deed, water account history, property taxes, Homeowners Association (HOA) statements, and cadastral information, and coordinates with the lead attorney. The agent verifies the buyer’s funds, opens escrow accurately and makes sure all contract terms are clearly understood and fulfilled. 

This agent guides both parties through signing the promise of sale, oversees compliance with consequences clauses and prepares the seller for closing at the notary’s office. Even after closing, the agent often assists with the handover of the property, final utility readings and inventory checks.

Your agent also represents the buyer

But when the seller brings the buyer, the listing agent must also step into the shoes of the buyer’s agent. This can be an even more demanding set of responsibilities. The agent must educate the buyer about the purchase process in Mexico, explain closing costs and taxes, coordinate inspections or surveys, guide them through escrow procedures and ensure the buyer understands deadlines, penalties and documentation requirements. Agents must also help the buyer with issues such as obtaining an RFC, setting up a fideicomiso (if the buyer is a foreigner purchasing in the restricted zone) and provide access to the property for any necessary visits.

The agent must keep both sides aligned, informed and on schedule. That’s who is responsible for avoiding misunderstandings, documenting everything in writing and ensuring that no step is missed. If a mistake is made during this process — such as an incomplete document, a missed payment deadline or inaccurately drafted escrow instructions — the consequences can be significant, both legally and financially.

The notary public oversees the legal validity of the closing, but the notary does not act as a transaction manager, negotiator or representative for either side. That role falls entirely on the listing agent when no buyer’s agent is present.

Liability of the listing agent

It is also important to recognize the level of liability the agent assumes. The listing agent is accountable for the accuracy of the listing, the integrity of the process, all communication with attorneys and the notary, and the handling of all contractual deadlines. If something goes wrong, the agent is the one expected to provide explanations, corrections and solutions. The commission is not only payment for service. It’s also payment for risk.

Some sellers, understandably, feel that finding the buyer should reduce the agent’s fee even further. Considering workload and responsibility, the 5% commission is a discount versus the standard model. In the traditional 6% arrangement, the listing agent receives only 3%. In the “seller brings the buyer” scenario, the agent receives 5% but absorbs the workload of both sides. The fee is proportionate to the services provided.

Removing the agent from the transaction altogether introduces serious risk. Many complications that arise during closing are not obvious to someone unfamiliar with Mexican real estate practices: missing municipal documents, unpaid water accounts, incorrectly registered additions to the property, mismatched identification numbers or a buyer who underestimates the cost of closing. These issues can stall a transaction or put the seller in legal jeopardy. A professional agent prevents these problems or resolves them quickly when they arise.

What the commission fee really covers 

Ultimately, the 5% commission is not a fee for “finding the buyer.” It is the fee that covers the full representation of both parties, from negotiation to legal coordination to closing. It ensures a smooth, secure and professionally managed transaction that protects the seller’s interests and guides the buyer through a complex process. When viewed in that context, the commission is not only justified — it is essential to a safe and successful sale.

Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.