Disputes between agents and principals often revolve around what issue?

Disputes between agents and principals frequently center around entitlement to remuneration based on the services rendered. In the context of real estate, this involves the agent's expectation of payment for their efforts in facilitating a transaction, which can include marketing a property, negotiating offers, and guiding clients through the buying or selling process.

When the terms of the agreement between the agent and the principal—such as the nature of the services to be provided and the conditions under which remuneration is owed—are not clearly defined or understood, conflicts can arise. For example, an agent may feel entitled to a commission for work completed even if a sale does not proceed, while the principal may believe that payment is only due upon a successful transaction. This fundamental difference in expectations about remuneration is a common source of disagreement.

In contrast, other options like the frequency of property showings, the amount of commission agreed upon, or the duration of the agency relationship are generally less contentious, as these factors are typically defined at the outset of an agency agreement and are unlikely to lead to disputes unless the underlying agreement is vague or misinterpreted.