| A house is listed with the Broker or the Broker's Agent of Company "A" at 8% commission. 5% going to listing broker and 3% to selling broker |
Company "A" Broker/Owner
Company "B"
Broker/Owner
Broker/Owner
BROKER AND AGENT COMMISSIONS RELATIONSHIP
The State of Texas Real Estate Commission requires that Real Estate professionals must be licensed to sell real estate. A
Salesperson license allows the sale of real estate but does not allow the collection of sales commissions directly from a
sale. A Broker license holder can collect commissions from real estate transactions. It is for that reason that Salespersons
contract with Brokers so they may be paid an agreed to portion of commissions indirectly through the Broker.
Salesperson license allows the sale of real estate but does not allow the collection of sales commissions directly from a
sale. A Broker license holder can collect commissions from real estate transactions. It is for that reason that Salespersons
contract with Brokers so they may be paid an agreed to portion of commissions indirectly through the Broker.
Selling Example 1
Selling Example 2
| Company "A" Listing Agent |
| Company "A" Selling Agent |
| The home is sold by a Sales Agent of Company "A" |
receives a total of 8% commission
from the sale because his firm was
both the listing company (5%) and the
selling company (3%).
from the sale because his firm was
both the listing company (5%) and the
selling company (3%).
Broker keeps prior
agreed to portion of the
5% listing commission
and pays the listing
agent the remaining
amount.
agreed to portion of the
5% listing commission
and pays the listing
agent the remaining
amount.
Broker keeps prior
agreed to portion of the
3% selling commission
and pays the selling
agent the remaining
amount.
agreed to portion of the
3% selling commission
and pays the selling
agent the remaining
amount.
| A house is listed with the Broker or the Broker's Agent of Company "A" at 8% commission. 5% going to listing broker and 3% to selling broker |
| This time the home is sold by a Sales Agent of Company "B" |
Company "A" Broker/Owner
Company "A"
Broker/Owner
Broker/Owner
| Company "B" Selling Agent |
Broker keeps prior
agreed to portion of the
5% listing commission
and pays the listing
agent the remaining
amount.
agreed to portion of the
5% listing commission
and pays the listing
agent the remaining
amount.
receives 5%
commission as
the listing firm
commission as
the listing firm
receives 3%
commission as
the selling firm
commission as
the selling firm
Broker keeps prior
agreed to portion of the
3% selling commission
and pays the selling
agent the remaining
amount.
agreed to portion of the
3% selling commission
and pays the selling
agent the remaining
amount.
| Company "A" Listing Agent |
Please note: In most instances Real Estate Sales Agents are under contract with a Broker and those contracts may be written
with any terms agreeable to both parties. As an example, a Broker might pay advertising costs, a portion of those costs, or none
at all. The Agent's office space might be free or a monthly charge may apply. Any portion of the agreement that can be negotiated
may be applicable. The above example could possibly be a portion of such a contract. There is no rule dictating agreement
terms. In addition, the brokerage commissions charged are also an example. Commissions for Real Estate sales services are
not set and are dependent on an agreement between the listing client and Broker/Broker's Agent. Other rules may also apply.
with any terms agreeable to both parties. As an example, a Broker might pay advertising costs, a portion of those costs, or none
at all. The Agent's office space might be free or a monthly charge may apply. Any portion of the agreement that can be negotiated
may be applicable. The above example could possibly be a portion of such a contract. There is no rule dictating agreement
terms. In addition, the brokerage commissions charged are also an example. Commissions for Real Estate sales services are
not set and are dependent on an agreement between the listing client and Broker/Broker's Agent. Other rules may also apply.
Phone: 325-725-0202
Fax #: 325-793-1247
3301 S 27th Abilene Texas
Fax #: 325-793-1247
3301 S 27th Abilene Texas
| Webmaster: Joe Mack Howard, TransAction Realtors, email: jmackh@sbcglobal.net Information on this website is deemed to be correct but is not guaranteed. |