be careful of discount brokerages, as they do not usually offer full-service agency representation, which can lose you money, contract terms, or sometimes even lack of information you needed. Historically, the listing agent and the buyer’s agent would split the commission, but this practice has evolved due to recent regulatory changes. Issues can arise. For example, sometimes the split might not be negotiated evenly. A seller could have agreed to pay a commission of 5.5% that, if further divided, the buyer’s agent would receive 2.5% while the listing agent receives 3% of the commission or the seller offered a higher commission due ot the work the listing agent performed and an 8% commission is paid at closing where the listing agent gets 5% and the buyers agent gets 3%. Even though some agents are associate brokers, or brokers in general, all commission payments have traditionally gone through to the broker who’s managing the brokerage where the agent is working. From there, the commission is then split to the agent and the broker, according to the agreement that’s been made. The split will vary; sometimes, newer agents will earn a small portion of the commission compared to the experienced or successful agents who generally sell more expensive properties or homes. Many agents commissions are then split with the broker who they work with, the assistants who are on their team and transaction coordinators, plus fees. So when you see someone get a commission on your closing disclsoure, it does not mean they got that entire amount.
PAYING THE COMMISSION ITSELF
As of now, it's standard for the seller to pay the commission at the settlement from the sale proceeds of the property. This commission is typically a percentage of the sale price, agreed upon in advance between the seller and their real estate agent.
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