What legal term refers to the compensation an agent earns for their services upon closing a deal?

The term that refers to the compensation an agent earns for their services upon closing a deal is "commission." In real estate transactions, agents typically receive a commission as a percentage of the sale price of the property. This compensation is a standard practice and serves as a financial incentive for agents to facilitate the transaction effectively. Commission structures can vary, but they are commonly agreed upon beforehand and outlined in the listing agreement or contract. It directly reflects the agent's efforts and success in closing a sale, making it a key aspect of their professional remuneration in the industry.

The other terms, while associated with real estate transactions, do not represent the agent's earnings. For instance, fee simple refers to a type of ownership interest in real estate, earnest money is a deposit made to demonstrate a buyer's serious intent, and closing costs encompass various fees associated with finalizing a real estate transaction. Each of these plays a distinct role within the process but does not pertain to the agent’s compensation.