Commission

Definition: A real estate commission is compensation for brokerage services under the parties' agreement, often expressed as a percentage or a fixed amount.

Example

For a hypothetical agreed fee of 2% on a $300,000 sale, the fee is $6,000 before any brokerage split.

Keep the distinction clear

Commissions are negotiable; no standard rate is set by law. The agreement determines when a fee is earned and payable. Here commission means compensation, not the Florida Real Estate Commission.

Related terms

Compensation · Broker · Sales Associate

Keep studying

Commission Math: Tiered Rates and Broker–Associate Splits

References: NAR: written buyer agreements

Pronunciation (US): kuh-MISH-uhn (capitals show stress)

Pronunciation reference: Merriam-Webster