Finance
What is commission split?
A commission split is how the fee from a transaction is divided — between the brokerages on each side, and then between each brokerage and its individual agent.
Two divisions happen. The total fee is first apportioned between the listing and buying sides, then each side's share is split between the brokerage and the agent according to their agreement.
Agent-brokerage splits vary widely by model: a new agent might be on a low percentage in exchange for training and lead flow, while a high producer may be on a much higher split, or on a capped model where they keep everything after a fixed annual contribution.
Understanding the split matters for evaluating an agent's actual economics, since headline commission rates say little about what any individual takes home.
Related terms
A listing agreement is the contract between a seller and a brokerage that authorises the brokerage to market the property, setting the price, duration, compensation and the extent of exclusivity.
A buyer's agent represents the purchaser in a property transaction, owing them fiduciary duties and advising on price, terms, negotiation and process — as distinct from the listing agent, who represents the seller.
A brokerage is the licensed firm under which individual agents operate. It carries legal responsibility for their transactions and provides the supervision, compliance and infrastructure they work within.
Gross commission income is the total commission an agent or brokerage earns before any splits, fees or expenses are deducted. It is the standard headline measure of production volume.