Commissions

Question 1

What is a commission?

Answer 1

Fee paid for service.

Usually paid by seller at closing transaction as detailed in the listing agreement.

In real estate, it is negotiable and calculated as a percentage of sales price.

Question 2

How is commission split?

Answer 2

It is negotiable.
Between broker and salesperson

If in MLS, then the cooperating broker and broker is usually50/50

Seller salesperson . 60/40

Buyer salesperson. 70/30

Real estate firms differ in its commission splits and fees paid by the licensee

New agents should question the commission splits and fees to be paid when interviewing w/ a brokerage firm.

Sellers

Question 3

When is the commission earned?

Answer 3

The commission is EARNED when a buyer is “willing, ready and able” to purchase the property.

The commission is RECEIVED after the transaction is done.