hundred percent commission

hundred percent commission

A real estate office arrangement in which the qualifying or managing broker keeps none of the real estate commission earned by the office, but instead pays 100 percent to the agent who secured the listing, the buyer, or the tenant.The broker makes his or her own money by competing against the agents, contrary to the typical practice in most other real estate offices.The broker also charges each agent a monthly fee to cover office space, advertising, and operating expenses and to provide a profit to the broker.This is in contrast to the more widespread practice in which commissions are paid to the broker,who is the only person legally authorized to enter into an agency agreement with another.The broker then splits the commission, paying some portion to the agent actually responsible for the work performed to earn the money.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.