Who pays the transaction coordinator? Payment models, timing and rules

There are three common setups.

The agent pays

This is the default for independent and outsourced TCs. You hire the TC, so you pay, usually a flat fee per file that comes out of your commission. A 2026 HousingWire column put what agents and brokers pay at roughly $300 to $500 per deal. For a fuller breakdown of rates, see transaction coordinator cost and fees.

The brokerage pays or provides a TC

Some brokerages employ in-house coordinators or contract with a TC service, offering coordination free or for a fee (RealTrends). The cost may be absorbed as overhead, built into your split or charged per transaction. Teams can work the same way, with the team lead paying the TC and recovering the cost through the team split.

The client pays through a transaction or admin fee

Some brokerages charge buyers or sellers a separate transaction or administrative fee, and some agents use it to cover TC costs. NAR says many brokerages charge these fees to offset paperwork and regulatory costs, and that brokers should tie them to actual services and costs and disclose them to buyers and sellers. This setup carries the most rules, covered below.

The Close describes a flat fee per transaction as a standard structure, alongside salaried roles at brokerages and less common hourly arrangements. RISMedia has also reported percentage-of-commission deals, typically 1% to 3% of the commission, and hourly rates of about $25 to $50.

Percentage arrangements deserve a second look, because some states restrict sharing commissions with unlicensed people. Mississippi’s Real Estate Commission, for example, says licensees may not share commissions with unlicensed persons who assisted by performing any service with respect to a closing (MREC guidelines).

Who pays and when they pay are separate questions.

Paid at closing

The closing agent pays the TC out of the proceeds, based on written instructions. If you’re the one paying, the fee usually comes out of your commission, so your broker’s disbursement process applies. In Texas, for instance, the Texas Real Estate Commission says all of a sales agent’s commissions must be paid through the sponsoring broker.

If a buyer or seller is paying, the fee should appear as its own line. Under the CFPB’s official interpretation of the Closing Disclosure rules, extra charges that brokerages or agents impose are itemized separately, with a description of the service and the name of the person who ultimately receives the payment.

Invoiced

The TC bills you at or after closing, or on a monthly statement, and you pay from your business account. That keeps the TC off the closing paperwork and gives you a clean record of vendor costs, but paying on time is on you.

Tip: If you want your TC paid at closing, ask your broker and the closing agent early what authorization and paperwork they need, so the payment doesn’t turn into a last-minute scramble.

Some outsourced TCs bill only when a deal closes. The model isn’t new: in 2016, Realtor Magazine profiled a TC firm that charged its fee at closing and nothing if the contract failed. Others charge a partial or full fee when a file cancels after work has started, so read the cancellation terms before you sign.

Dealyo works on the pay-at-close model: your first deal is free, then it’s $400 per deal with no monthly fees, and you only pay for deals that close. Prepaid 5-, 10- and 25-deal packs bring the price down to $350, $325 or $250 per deal, and a deal that falls through doesn’t count against a pack.

Pay-at-close pricing lines up the cost with your income, and a dead deal doesn’t leave you with a bill. Two things to check:

• Your state’s rules on contingent pay. Some states restrict pay for unlicensed help that depends on a closing. The New York Department of State says an assistant paid on a completed-transaction basis must be licensed as a salesperson and paid directly by the broker. Mississippi’s guidelines describe paying assistants at a predetermined rate that isn’t contingent on a transaction. Virginia went the other way in 2026, revising its regulations to permit per-transaction pay for unlicensed assistants, according to Virginia REALTORS. These rules are written for assistants, and how they apply to an outside TC service can differ, so ask your broker how your state treats your arrangement.
• The definitions in your agreement. Spell out what counts as closed, what happens if a file cancels and later revives, and whether dual-sided deals cost more.

Want simple, pay-at-close pricing? Dealyo assigns a dedicated transaction coordinator to every deal. Your first deal is free, and after that you pay $400 only for deals that close, with no monthly fees. See how Dealyo works.

Sometimes, but it’s the setup with the most guardrails. If your broker allows a client-paid fee and your state’s rules permit it:

• Put it in the agreement at the start. The fee belongs in the listing or buyer agreement, not in a surprise line at closing. An E&O insurer’s legal blog notes that if a TC fee isn’t referenced in the brokerage agreement, the client has a basis to refuse it (CRES Insurance).
• Tie it to real services and disclose it, as NAR advises.
• Check your buyer agreement. Under NAR’s practice changes for agents working with buyers, a written buyer agreement must state compensation in an objectively ascertainable way, and buyer brokers can’t receive compensation for brokerage services from any source that exceeds the amount in the agreement (NAR). Ask your broker whether an admin fee counts toward that figure.
• Make sure it’s itemized correctly on the Closing Disclosure or settlement statement.

Some risk advisors go further: the same insurer’s blog recommends not passing TC fees on to consumers at all.

RESPA Section 8

The Real Estate Settlement Procedures Act covers settlement services on federally related mortgage loans, a broad category defined in Regulation X, and the regulation lists the services of a real estate agent or broker as a settlement service (12 CFR 1024.2). Section 8 does three things that matter here (12 U.S.C. § 2607):

• Bans referral payments. No one may give or accept a fee, kickback or thing of value under an agreement to refer settlement-service business. Regulation X defines “thing of value” broadly, including services at special or free rates (12 CFR 1024.14). Be careful if a lender, title company or other provider you refer business to offers to cover or discount your TC costs.
• Bans unearned splits. No one may give or accept a portion, split or percentage of a settlement-service charge other than for services actually performed. That’s one reason some risk advisors are wary of charging a client a TC fee and sharing it with an outside TC.
• Allows payment for real work. Section 8 doesn’t prohibit bona fide compensation for services actually performed. Regulation X adds that when a payment bears no reasonable relationship to market value, the excess isn’t for services actually performed.

Violations can bring fines of up to $10,000, up to a year in prison or both, plus civil liability of three times the charge paid for the settlement service.

State license law

State rules shape who can be paid, for what and how. In Texas, a license holder may not share a commission or fee with an unlicensed person who performs acts that require a license (22 Tex. Admin. Code § 535.147). Other states draw different lines, as the contingent-pay examples above show. Our transaction coordinator license guide covers what unlicensed TCs can and can’t do, and our state-by-state transaction coordinator directory links to local guides.

Broker policy

Your broker may have rules on outside vendors, client-paid fees, file access and how vendors get paid at closing. Get the answers in writing before you bring on a TC.

Your agreement with the TC should cover:

• Who pays: you, your brokerage or a client fee your broker approved
• The amount, including any extra for dual-sided or complex files
• When payment is due: at closing, on invoice or on a schedule
• How payment at closing is authorized and processed
• What you owe if a deal cancels, stalls or revives
• What the TC handles and what stays with you as the licensee
• Your broker’s approval of the arrangement

If a client will pay any part of the fee, the listing or buyer agreement should also state the amount, what it covers and when it’s due.

For the full list of agreement terms, including data handling and licensing boundaries, see how to hire a transaction coordinator. And if you’re still weighing whether a TC is worth the fee at all, start with do you need a transaction coordinator.