In a real estate closing transaction with an exclusive right-to-sell listing, what is the nature of the commission?

In the context of a real estate closing transaction involving an exclusive right-to-sell listing, the commission is considered a debit to the seller. This is because the seller is responsible for paying the commission to the listing agent as part of the transaction. The exclusive right-to-sell agreement typically stipulates that the seller agrees to pay a specified commission percentage upon the successful sale of the property, regardless of who brings the buyer.

When calculating the closing statement, the commission is deducted from the proceeds of the sale, reflecting that it is an expense incurred by the seller in order to facilitate the sale of their property. This aligns with standard practices in real estate transactions, where expenses associated with the sale, including commissions, are debited from the seller's side of the ledger.