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Commissions

By David Saks

Industry Observer TN LIC# 290452

April 26, 2008 05:09 PM

commission

Before a salesperson is compensated, doesn't an agreement have to exist between the broker and the salesperson regarding the amount or type of compensation with the company?

Do you share the commission from the transaction or receive a fixed salary?

To be entitled to a commission one must be licensed, a procuring cause of the sale, and employed by your seller, or buyer, under a legitimate, binding, and legally acceptable contract.

What kind of commission plans have you experienced in your career as a real estate professional?

100%, splits of varying degree, 50/50, graduated, compensated with service charges ?

Thanks to all for your good thoughts.

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Kevin O'Shea

Coldwell Banker - White Plains, NY

White Plains, NY Real Estate

This is different in different states. In most states verbal contracts are binding. Not for Real Estate Sales themselves, but listing agreements and employment agreements can be oral.

Dont't work for a Broker you don't trust.

Commission splits are quite negotiable.

All the best!

Apr 26, 2008 05:15 PM

Kathy Fisher Sells Lexington TN homes! 731.845.3413

Five Star Real Estate Services - Lexington, TN

In my office we must present a complete file that would withstand any visit from our friendly state auditor and of course the commission check. We are on a 5/70/30 split. We can elect to pay all of our expenses & desk fees monthly and get a 5/95 split. We do agree in writing.

Hope this helps. Good luck to you!

All the Best!

Apr 26, 2008 05:23 PM

Jean Powers

Kane & Associates call 510.908.9002 - Alameda, CA

CRS,e-PRO,HAFA,SFR Broker, Northern California

In California all needs to be in writing if you want to get paid. An agent signs a contract with their broker. The 2 offices I previously worked in, there was no fee per month only a split starting at 60/40 and increased to 90/10, in January, the split went back to 60/40. I now work for a franchise and there is a $300 fee per month and I negotiated a fixed 80/20 split. Some companies charge 6% off the top of the commission before the split!

Apr 26, 2008 05:24 PM

Vickie Nagy

Coldwell Banker Residential Real Estate - Palm Springs, CA

Vickie Jean the Palm Springs Condo Queen

I have worked on 100% with associated costs, 80/20 but now choose 70/30 due to broker compensation on marketing. Hope this helps.

Apr 26, 2008 05:26 PM

Pam Winterbauer

Pam Winterbauer Real Estate - San Ramon, CA

"Providing Blue Ribbon Service"

David.....everything is negotiable. I would guess most states state you must have a written agreement with you broker on compensation and due's and don'ts. In California we are required to have everything in writing.

Apr 26, 2008 06:02 PM

David Saks

Memphis, TN

Broker / Industry Analyst

Good thoughts, Kevin.

Apr 28, 2008 06:18 AM

Sounds like a fine system, Kathy.

Apr 28, 2008 06:19 AM

Good points, Jean. Many thanks for the good info.

Apr 28, 2008 06:20 AM

Interesting, Vicki. Thank you for posting.

Apr 28, 2008 06:23 AM

Everthing should be when it's about your commission, Pam. Many thanks.

Apr 28, 2008 06:25 AM

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