Dick asked:
Is it legally correct for a real estate agent to receive commission during the breach of a contract
Answer:
Well, not being a legal eagle, you might want to check with someone else too. But my opinion is that it is only fair for the real estate agent to get paid.
If either the buyer or seller breaches the agreement of sale for the property, then the other party has certain legal rights, witch may include being compensated for financial losses arising from the breach of contract.
So, if the agent did not breach the contract, the agent should have the right to recover his/her financial loss as a result of the breach from the party that breached the terms of the agreement.
If the breach did not occur, then the property would have been transferred and the agent would have received his/her commission. So, the agent should be able to recover his/her "lost" commission from the party in breach of the agreement.
In reality, when a real estate agent is involved in the sale of immovable property, then there are actually THREE parties to the agreement of sale. The buyer and seller cannot even get together and agree to cancel the sale of the property without either paying the agent's commission or getting the agent's permission to cancel the sale.
If a breach of contract occurs, the real estate agent's commission is still payable. Usually the contract makes provision that the party in breach of the sale to be liable for the agent's commission.
