The commission is then distributed between the listing agent's brokerage and the buyer's agent's brokerage. This split is predetermined and is part of the contractual agreement between the seller and their agent. After the brokerage receives its portion, it then pays the individual agents according to their internal agreements, and sometimes, the commission is paid directly at closing via the title company to the buyer's agents' brokerage company. It's important for both buyers and sellers to understand that while this is the current standard practice, the real estate industry is dynamic, and practices can vary. Different arrangements might be made for commission payments, so it is important to understand your agreement with your real estate agent. As a buyer or seller, it's advisable to discuss commission structures with your agent to understand how they will apply to your specific transaction fully.
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