How Realtors Get Paid

Real estate professionals help buyers and sellers navigate pricing, marketing, property searches, negotiations, contracts, inspections, financing, appraisals, title issues, and closing. In exchange for these services, a Realtor may receive a commission, flat fee, hourly payment, retainer, referral fee, salary, or another form of negotiated compensation.

However, Realtors do not all get paid in the same way.

The amount paid, the person responsible for payment, the services included, and the way the compensation is divided depend on written agreements, brokerage policies, negotiations, and the details of the transaction.

One of the most important facts for consumers and new real estate agents to understand is that real estate compensation is negotiable. There is no law requiring every seller or buyer to pay the same commission rate. A broker and client may agree to a percentage, flat fee, hourly amount, combination of methods, or another clearly defined arrangement.

This guide explains how Realtors get paid, when payment occurs, how commissions are divided, and why the amount shown on a sales contract is not necessarily the amount an individual agent takes home.

What Is a Realtor?

A Realtor is a real estate professional who is a member of the National Association of REALTORS.

The terms "real estate agent" and "Realtor" are often used interchangeably, but they are not identical.

A person may hold an active real estate license without becoming a Realtor. Realtors agree to follow the National Association of REALTORS Code of Ethics in addition to applicable real estate laws and regulations.

Depending on state law and license classification, a real estate professional may work as a:

• Sales associate
• Broker associate
• Broker
• Listing agent
• Buyer's agent
• Transaction broker
• Property manager
• Leasing professional
• Commercial agent
• Referral agent

The person's role can influence how compensation is earned and distributed.

Do Realtors Receive a Salary?

Many Realtors do not receive a traditional salary.

Residential real estate professionals are commonly compensated only when a transaction successfully closes. This means an agent may spend weeks or months working with a buyer or seller without receiving immediate payment.

Some real estate positions may include a salary, hourly pay, or bonus structure. Examples may include:

• Brokerage employees
• New-home sales representatives
• Property-management employees
• Apartment leasing agents
• Real estate assistants
• Transaction coordinators
• Brokerage managers
• Certain commercial real estate professionals

However, independent residential agents often depend primarily on transaction-based compensation.

What Is a Real Estate Commission?

A real estate commission is compensation paid for brokerage services.

The commission may be calculated as:

• A percentage of the sale price
• A flat amount
• A combination of a percentage and flat fee
• A fee based on specified services
• Another amount established by agreement

For example, a listing agreement might provide that the brokerage will be paid a percentage of the property's final sale price.

Another agreement might require a fixed fee regardless of the final price.

Commission rates are not established by the government, real estate commission, Realtor association, or multiple listing service. Each brokerage independently negotiates compensation with its clients.

Competing brokers should not agree with one another to set standard commission rates because that may violate antitrust law.

Who Actually Earns the Commission?

A common misconception is that an individual sales associate personally enters into a commission agreement with a buyer or seller.

In Florida, a sales associate works under an employing broker. Compensation connected to brokerage services is generally earned and received through the brokerage.

Florida law states that a sales associate may not collect money connected with a brokerage transaction-including a commission, deposit, rental payment, or other transaction money-except in the employer's name and with the employer's express consent. A sales associate's claim for compensation is generally against the broker who was registered as the employer when the services were performed.

This means the typical payment process is:

1. A client enters into a compensation agreement with a brokerage.
2. The real estate transaction closes.
3. The brokerage receives the agreed compensation.
4. The brokerage pays the sales associate according to the agent's independent-contractor, employment, or compensation agreement.

The agent does not normally receive the entire amount paid to the brokerage.

How Listing Agents Get Paid

A listing agent helps an owner market and sell property.

The seller and listing brokerage usually establish compensation in a written listing agreement.

The agreement may describe:

• The services provided
• The length of the listing
• The compensation amount or calculation
• When compensation is earned
• When it becomes payable
• Whether the seller will consider paying buyer-side expenses
• What happens if the property does not close
• Whether a protection period applies after expiration

The listing brokerage may earn compensation by:

• Listing and marketing the property
• Finding a ready, willing, and able buyer
• Completing a closed transaction
• Satisfying another standard described in the agreement

The exact payment right depends on the contract and applicable law.

How Buyer's Agents Get Paid

A buyer's agent or buyer's brokerage helps a buyer locate, evaluate, negotiate for, and purchase property.

Buyer-agent compensation should be explained in a written buyer agreement.

For MLS participants covered by National Association of REALTORS practice rules, a written buyer agreement is generally required before the professional tours a home with the buyer, whether the tour is in person or live virtual. The agreement must objectively state the compensation amount or how it will be calculated rather than leaving the amount open-ended.

The agreement may provide for compensation through:

• A percentage of the purchase price
• A flat fee
• An hourly rate
• A retainer
• A seller-paid amount
• A listing-broker payment arranged outside the MLS
• A seller concession
• A combination of sources

The buyer agreement should explain what happens if another source pays all or part of the brokerage's compensation.

Can a Seller Pay the Buyer's Agent?

Yes, a seller may agree to pay some or all of the buyer brokerage's compensation.

A seller may do this through:

• A provision in the purchase offer
• A seller concession
• A separate compensation agreement
• An arrangement between brokerages
• Instructions included in the transaction documents

However, seller payment is negotiable and not automatic.

A buyer may ask the seller to pay a specified amount toward the buyer brokerage's compensation as part of the offer. The seller may:

• Accept the request
• Reject it
• Counter with a different amount
• Adjust other transaction terms
• Agree to pay nothing

The compensation request becomes one of the financial terms considered during negotiation.

Can a Listing Broker Pay a Buyer's Broker?

A listing brokerage may agree to pay another brokerage for cooperation or services.

Since August 17, 2024, offers of buyer-broker compensation are not permitted within fields of MLSs subject to the National Association of REALTORS settlement practice changes. However, compensation arrangements may still be negotiated and communicated outside the MLS.

This means agents should not assume that a property's MLS listing will show an offer of compensation to the buyer's brokerage.

The buyer's agent may need to:

• Contact the listing brokerage
• Review permitted off-MLS information
• Negotiate compensation
• Include a seller-payment request in the offer
• Apply the buyer agreement's terms

A Realtor may not withhold or delay delivery of a buyer's offer while attempting to resolve compensation. NAR's 2026 professional standards changes expressly emphasize that compensation is negotiable and that delivery of an offer should not be delayed for that reason.

Can the Buyer Pay the Buyer's Agent Directly?

A buyer may be financially responsible for the buyer brokerage's compensation under the written buyer agreement.

For example, the agreement might state that the buyer brokerage will receive a specified fee. If the seller or listing brokerage pays less than that amount, the buyer may be responsible for the difference, depending on the contract.

Consider this simplified example:

• Buyer brokerage fee in the written agreement: $9,000
• Seller agrees to contribute: $7,000
• Remaining amount potentially owed by buyer: $2,000

The actual result depends on the agreement, negotiations, lender rules, closing documents, and applicable law.

Buyers should understand compensation obligations before touring properties or submitting offers.

Are Realtors Always Paid a Percentage?

No.

Although percentage-based commissions are common, brokers and clients may negotiate other arrangements.

Flat Fee

The brokerage receives a fixed amount.

For example, the parties may agree to a $5,000 fee regardless of the final sale price.

Hourly Fee

The client pays for time spent providing specified services.

An hourly arrangement may be used for:

• Consultations
• Property research
• Tours
• Contract assistance
• Limited representation
• Commercial assignments

Retainer

A client pays an amount in advance to secure services.

The agreement should explain whether the retainer is refundable, credited toward later fees, or earned as services are provided.

A La Carte Services

A brokerage may charge separate fees for individual services, such as:

• MLS entry
• Photography coordination
• Property showings
• Contract preparation assistance
• Marketing
• Negotiation
• Closing coordination

Combination Fee

The agreement may combine multiple methods.

For example, a broker may charge a reduced percentage plus a flat administrative fee.

Whatever arrangement is used should be clearly stated in the written agreement.

When Is the Commission Earned?

A commission can be earned at a different time from when it becomes payable.

A listing agreement might state that the broker earns compensation by producing a buyer who is ready, willing, and able to purchase on the seller's terms.

However, the agreement may provide that payment will occur at closing.

The exact rule depends on the wording of the contract.

Possible commission-triggering events may include:

• Successful closing
• Procurement of a qualified buyer
• Seller refusal to complete an accepted transaction
• Buyer default under certain circumstances
• Sale during a listing protection period
• Another event specified in the brokerage agreement

Consumers and agents should not assume that no closing always means no commission is legally owed.

The written agreement should be reviewed.

When Do Realtors Actually Receive Their Money?

In a typical sale, the brokerage is paid at or shortly after closing.

The closing agent may distribute funds according to the settlement statement and written instructions.

The brokerage then processes the payment and pays the agent according to its internal procedures.

The individual agent might receive payment:

• On the day of closing
• One or more business days afterward
• After required documents are submitted
• After the brokerage completes compliance review
• Through direct deposit
• By check

A brokerage may delay an agent's payment when the transaction file is incomplete or required documents are missing.

What Happens to the Commission at Closing?

Before closing, the agreed real estate compensation is generally shown on the closing or settlement statement.

The statement may identify:

• Listing brokerage compensation
• Buyer brokerage compensation
• Seller-paid amounts
• Buyer-paid amounts
• Referral fees
• Brokerage administrative fees
• Other authorized charges

The closing agent follows the written transaction documents and disbursement instructions.

An agent should review the commission information before closing and notify the broker of any apparent error.

How Is a Commission Split Between Brokerages?

When two brokerages participate in a transaction, each may receive compensation based on separate agreements.

For example:

• The seller has a listing agreement with the listing brokerage.
• The buyer has a buyer agreement with the buyer brokerage.
• The seller may agree to contribute toward buyer-broker compensation.
• The listing and buyer brokerages may have a separate compensation agreement.

There is no required equal split.

One brokerage may receive more or less than another depending on the negotiated agreements.

The listing agent and buyer's agent do not personally decide how closing funds are distributed unless they have authority from their brokers.

How Is the Agent's Share Calculated?

After the brokerage receives compensation, it pays the individual agent according to the agent's agreement with the brokerage.

A commission split is the agreed division of compensation between the brokerage and agent.

Possible splits include:

• 50/50
• 60/40
• 70/30
• 80/20
• 90/10
• Graduated splits
• Capped models
• Transaction-fee models
• Team arrangements

There is no universal split.

New agents may receive a smaller share in exchange for:

• Training
• Mentorship
• Leads
• Marketing
• Administrative support
• Office space
• Technology
• Transaction coordination
• Broker availability

Experienced agents may negotiate higher splits or operate under a capped system.

Example of a Brokerage Split

Suppose a brokerage receives $10,000 from a transaction.

The agent has a 70/30 split with the brokerage.

• Gross brokerage compensation: $10,000
• Agent's 70% share: $7,000
• Brokerage's 30% share: $3,000

The agent's $7,000 may still be reduced by additional expenses, such as:

• Franchise fee
• Transaction fee
• Team split
• Referral fee
• Errors and omissions charge
• Lead-generation fee
• Marketing reimbursement
• Tax withholding, where applicable

The agent's actual take-home amount may therefore be less than $7,000.

What Is a Commission Cap?

Some brokerages use a commission-cap system.

Under this arrangement, the brokerage receives a portion of the agent's commissions until the agent has paid a specified amount during the brokerage year.

After reaching the cap, the agent may receive a higher percentage of later commissions, subject to transaction fees or other charges.

For example:

• Brokerage cap: $20,000
• Agent pays the agreed split until $20,000 has gone to the brokerage
• Later transactions may be paid at a higher agent percentage

The cap may reset annually.

Agents should ask what charges count toward the cap and whether franchise or transaction fees continue after it is reached.

What Is a Team Split?

An agent working on a real estate team may have two compensation divisions:

1. A split between the brokerage and agent
2. A split between the team and agent

For example:

• Brokerage receives $10,000.
• Brokerage keeps 20%.
• Remaining amount: $8,000.
• Team agreement gives the agent 50% of the remaining amount.
• Agent receives $4,000 before other expenses.

Team splits vary depending on:

• Who generated the lead
• Agent experience
• Administrative support
• Marketing
• Showing assistance
• Transaction coordination
• Team-provided appointments

A team-generated lead may produce a different split than a client generated by the agent.

What Is a Referral Fee?

A referral fee is compensation paid when one licensed brokerage refers a client or transaction opportunity to another licensed brokerage.

For example, a Florida Realtor may have a client moving to another state. The Florida broker refers the client to a broker in the destination market.

If the client completes a transaction, the receiving brokerage may pay an agreed portion of its compensation to the referring brokerage.

Common referral agreements use a percentage of the receiving side's compensation, but the amount is negotiable.

Referral fees should be:

• Agreed upon in writing
• Handled through the brokers
• Paid to properly licensed parties
• Properly documented

Florida law permits discipline when a broker or licensee shares a commission or pays compensation to an improperly licensed person for real estate referrals or licensed services.

Can an Unlicensed Person Receive a Referral Fee?

An unlicensed person generally cannot be paid for performing real estate brokerage services or referring real estate business in a manner that requires licensure.

A person should not receive transaction-based compensation for activities such as:

• Finding buyers
• Procuring listings
• Negotiating terms
• Showing property
• Discussing contract terms
• Soliciting real estate business for a fee

Certain promotional gifts or payments to actual transaction parties may be lawful under limited circumstances, but they must not compensate unlicensed brokerage activity or violate other laws.

The broker should approve any payment before it is promised.

Can a Buyer or Seller Receive a Rebate?

In some transactions, a brokerage may agree to provide part of its compensation to a buyer or seller as a rebate or credit.

A rebate might be applied toward:

• Closing costs
• Prepaid expenses
• Other permitted transaction expenses
• A payment after closing

The arrangement should be:

• Approved by the broker
• Disclosed to the parties
• Permitted by the lender
• Accurately shown on closing documents
• Consistent with state and federal law

A rebate cannot be used to conceal transaction terms or mislead a lender.

What Are Brokerage Fees?

In addition to a commission, a brokerage may charge fees described as:

• Transaction fees
• Administrative fees
• Compliance fees
• Brokerage service fees
• Document-storage fees
• Technology fees

These fees should be disclosed and agreed upon as required.

A consumer should ask:

• Is the fee included in the commission?
• Is it charged in addition to the commission?
• Is it due even if the transaction does not close?
• Who is responsible for paying it?
• What service does it cover?

Agents should not wait until closing to surprise a client with an additional brokerage charge.

Do Realtors Get Paid for Open Houses?

An agent does not necessarily receive separate compensation for holding an open house.

A listing agent may conduct open houses as part of the services provided under the listing agreement.

A newer agent may host another agent's open house to:

• Gain experience
• Meet potential buyers
• Generate leads
• Assist the listing agent
• Increase property exposure

The hosting agent may receive:

• No direct payment
• An hourly amount
• A flat fee
• Lead opportunities
• A portion of compensation if the agent secures a client
• Another brokerage-approved benefit

Any payment arrangement should be authorized by the broker.

Do Realtors Get Paid for Showing Homes?

A buyer's agent may show many properties without receiving separate payment for each showing.

Under a traditional success-fee arrangement, the agent receives compensation only if the buyer completes a transaction.

However, a written buyer agreement may establish:

• An hourly showing fee
• A per-tour fee
• A retainer
• A cancellation fee
• A transaction fee
• A success-based commission

The agreement should clearly explain when each amount is due and whether it will be credited toward later compensation.

Do Realtors Get Paid if the Buyer Does Not Purchase?

Often, an agent working under a closing-based commission arrangement will not be paid if the buyer never purchases a property.

However, the result depends on the buyer agreement.

A buyer may owe compensation if the agreement includes:

• A retainer
• Hourly charges
• A specified cancellation fee
• Compensation after purchasing through another agent
• A protection period
• Reimbursement of certain expenses
• Another enforceable payment provision

The buyer should review termination and compensation terms before signing.

Do Realtors Get Paid if a Listing Does Not Sell?

A listing agent may not receive a commission when a property does not sell, but the listing agreement controls.

The seller may still owe compensation or reimbursement when:

• The seller rejects a full-price offer meeting the listing terms
• The seller refuses to close after accepting a contract
• The seller withdraws the property in violation of the agreement
• A protected buyer purchases during the protection period
• The agreement includes nonrefundable marketing charges
• Another contractual payment event occurs

Agents and sellers should understand the listing agreement's compensation and termination provisions.

What Is a Protection Period?

A protection period, sometimes called a broker protection or tail period, may allow a listing brokerage to receive compensation when the property is sold shortly after the listing expires.

The clause may apply when:

• The buyer learned about the property during the listing
• The buyer was introduced through the broker's efforts
• The buyer appears on a protected-prospect list
• The sale occurs within the stated period
• The seller did not enter into a qualifying new listing agreement

The exact requirements depend on the contract.

Buyer agreements may also contain protection provisions concerning properties introduced during the agreement.

What Is Procuring Cause?

Procuring cause is a concept that may be used in disputes between real estate professionals over entitlement to compensation.

It generally concerns which broker's actions began and maintained an uninterrupted chain of events leading to the completed transaction.

Factors may include:

• Who introduced the buyer to the property
• Who established the relationship
• Who prepared or presented the offer
• Whether the agent abandoned the buyer
• Whether the buyer wrongfully excluded the agent
• Whether another agent intervened
• The continuity of the agent's efforts

Procuring cause is not determined solely by who first opened the door or who wrote the contract.

The specific facts matter.

Are Realtors Employees or Independent Contractors?

Many real estate agents work as independent contractors for tax and business purposes.

An independent-contractor agent may be responsible for paying:

• Federal income tax
• Self-employment tax
• Estimated quarterly taxes
• Health insurance
• Retirement contributions
• Business expenses

The brokerage may issue a tax reporting form rather than withholding taxes like a traditional employer.

However, classification depends on the working arrangement and applicable law. Some real estate professionals are employees.

Agents should consult a qualified tax professional rather than relying solely on general real estate training.

What Expenses Come Out of an Agent's Pay?

An agent's gross commission income may be reduced by many costs.

Brokerage Expenses

• Commission split
• Desk fees
• Transaction fees
• Franchise fees
• Errors and omissions insurance
• Compliance fees
• Technology fees

Business Expenses

• Association dues
• MLS fees
• Lockbox fees
• Website
• CRM software
• Electronic signatures
• Photography
• Signs
• Business cards
• Advertising
• Lead purchases
• Client gifts
• Professional clothing

Transportation Expenses

• Fuel
• Vehicle maintenance
• Tolls
• Parking
• Mileage
• Auto insurance

Professional Expenses

• Continuing education
• Post-license education
• Coaching
• Accounting
• Legal advice
• Tax preparation
• Licensing renewal

Taxes

Independent agents may need to reserve a portion of every commission for taxes.

The amount deposited into the agent's bank account should not be viewed entirely as spendable income.

Gross Commission Income vs. Net Income

Gross commission income, commonly called GCI, is the total commission credited to the agent before expenses.

Net income is what remains after brokerage deductions, business expenses, and taxes.

For example:

• Gross commission credited to agent: $8,000
• Brokerage split and fees: $2,000
• Referral fee: $1,000
• Marketing and transaction expenses: $500
• Amount before taxes: $4,500

After taxes, the actual take-home amount may be lower.

New agents should build income goals around net profit rather than gross commission.

Example of a Complete Commission Breakdown

Assume a property sells for $400,000.

For illustration only, suppose the listing brokerage is paid $10,000 under its agreement and the buyer brokerage is paid $10,000 under a separate negotiated arrangement.

Listing Side

• Listing brokerage compensation: $10,000
• Agent split: 70%
• Agent amount before other expenses: $7,000
• Transaction and franchise fees: $500
• Listing agent amount before taxes: $6,500

Buyer Side

• Buyer brokerage compensation: $10,000
• Referral fee owed to another brokerage: 25%, or $2,500
• Remaining amount: $7,500
• Agent split: 70%
• Agent amount before other expenses: $5,250
• Team or transaction charges: $500
• Buyer agent amount before taxes: $4,750

Although each brokerage received $10,000, the individual agents did not take home that amount.

This example is not a recommended or standard commission structure. It simply demonstrates how compensation may be divided.

Can an Agent Negotiate Their Split With the Brokerage?

Yes, depending on the brokerage.

Factors that may affect an agent's split include:

• Experience
• Production
• Sales volume
• Lead generation
• Team membership
• Brokerage services
• Office costs
• Training
• Negotiating ability
• Market conditions

A new agent may have less negotiating power because the brokerage provides extensive support.

An experienced agent who generates substantial business may negotiate:

• A higher split
• A lower cap
• Reduced transaction fees
• Marketing support
• Team-building privileges
• Better lead terms

The agreement should be documented.

Does the Highest Split Always Pay the Most?

No.

An agent receiving a 90% split may pay significant monthly and transaction fees.

An agent receiving a 60% split may receive:

• Qualified leads
• Transaction coordination
• Photography
• Marketing
• Training
• Office support
• Mentorship
• Administrative assistance

A lower split may produce greater net income when the brokerage helps the agent close more transactions or reduces business expenses.

Agents should compare:

• Total annual fees
• Average transaction costs
• Lead quality
• Support
• Production requirements
• Commission caps
• Training
• Contract assistance

The percentage alone does not show the complete financial picture.

How Rental Agents Get Paid

Agents who help landlords or tenants with rentals may receive compensation through:

• A percentage of annual rent
• One month's rent
• A flat leasing fee
• A tenant-paid fee
• A landlord-paid fee
• A property-management agreement
• A brokerage-to-brokerage payment

Rental compensation varies significantly by market and agreement.

The fee may become payable when:

• A lease is signed
• The tenant takes possession
• Required funds are delivered
• Another event stated in the agreement occurs

Sales associates must still receive payment through their employing brokers.

How Property Managers Get Paid

Property managers may be compensated through:

• A percentage of collected rent
• A monthly flat fee
• Leasing fees
• Renewal fees
• Inspection fees
• Maintenance coordination fees
• Eviction coordination fees
• Setup fees

A management agreement should explain the services and charges.

Property-management income may be more regular than sales commissions, but it also involves ongoing responsibilities.

How Commercial Realtors Get Paid

Commercial real estate compensation may be based on:

• Sale price
• Lease value
• Total rent over the lease term
• Square footage
• Flat consulting fees
• Retainers
• Hourly fees
• Success fees
• Investment acquisition fees

Commercial transactions may take months or years to complete.

An agent may perform significant research and negotiation before receiving payment.

Commercial agreements often include detailed provisions governing payment timing and client obligations.

Do Realtors Receive Bonuses?

An agent may receive a bonus in addition to regular compensation.

Examples include:

• Seller-offered transaction bonus
• Builder incentive
• Brokerage production bonus
• Team performance bonus
• Recruitment bonus
• Lead-conversion bonus

Bonuses connected to licensed services should be paid through the appropriate brokerage and fully disclosed when required.

A sales associate should not accept a secret direct payment from a buyer, seller, builder, lender, or closing provider.

Can Builders Pay Realtors?

A builder may offer compensation to a brokerage that brings a buyer to a new-construction community.

The builder may require:

• Agent registration on the first visit
• Written buyer representation
• Attendance at appointments
• Specified documentation
• Compliance with commission procedures

If the agent fails to follow the builder's registration rules, compensation may be disputed or denied.

Buyer agents should explain that the builder's sales representative generally works for the builder rather than serving as the buyer's personal representative.

Can Realtors Be Paid by Lenders, Title Companies, or Inspectors?

Payments for referrals involving settlement services may be restricted by federal and state law.

A Realtor should not assume that a lender, title company, insurance provider, inspector, attorney, or other settlement-service business may legally pay a referral fee.

The Real Estate Settlement Procedures Act may prohibit giving or accepting things of value for referrals of certain settlement-service business involving federally related mortgage loans.

Agents should consult their broker and legal or compliance resources before accepting any outside payment.

Common Misconceptions About Realtor Compensation

"The Seller Always Pays Every Agent"

Not necessarily. Compensation may come from the seller, buyer, listing brokerage, or a combination of sources.

"The Commission Is Fixed"

False. Real estate compensation is negotiable and is not set by law.

"Buyer Representation Is Free"

A buyer may not write a separate check in every transaction, but buyer-broker services are compensated under an agreement.

"The Agent Keeps the Entire Commission"

Usually false. The brokerage, team, referral source, vendors, and tax obligations may reduce the agent's share.

"Agents Are Paid When the Contract Is Signed"

Usually, payment is received at closing, although the legal right to compensation depends on the agreement.

"An Agent Who Shows the Property Gets the Commission"

Not automatically. Representation agreements, compensation contracts, and procuring-cause considerations may apply.

"A Sales Associate Can Accept a Check Directly"

In Florida, transaction compensation must generally be handled through the employing broker.

"Agents Earn Easy Money"

A commission may compensate an agent for months of prospecting, showings, research, negotiation, travel, communication, and transaction management.

Questions Consumers Should Ask About Compensation

Before signing a brokerage agreement, buyers and sellers should ask:

• What services are included?
• How is compensation calculated?
• Is the fee a percentage, flat amount, hourly rate, or combination?
• When is the fee earned?
• When is it payable?
• Who is expected to pay it?
• Can another party contribute?
• What happens if the transaction does not close?
• Are there additional brokerage fees?
• What happens if the agreement is canceled?
• Is there a protection period?
• Will amounts paid by another source reduce my obligation?
• Are there reimbursable expenses?

These questions should be answered before services begin.

Questions New Agents Should Ask Their Brokerage

Before joining a brokerage, an agent should ask:

• What is my commission split?
• Does the split change based on production?
• Is there an annual cap?
• When does the cap reset?
• What monthly fees are charged?
• Are there transaction fees?
• Are franchise fees deducted?
• How are team commissions calculated?
• How are referral fees processed?
• When are commissions paid?
• What documents must be submitted before payment?
• Are leads subject to a different split?
• What happens to pending commissions if I leave?
• Are unpaid commissions addressed in the agreement?
• Who pays for marketing and photography?

A clear compensation agreement can prevent disputes later.

Realtor Compensation Quick Reference

Final Answer: How Do Realtors Get Paid?

Realtors are paid according to negotiated agreements between clients and real estate brokerages.

Compensation may be structured as:

• A percentage of the sale price
• A flat fee
• An hourly fee
• A retainer
• A referral fee
• A combination of payment methods

Listing brokers and buyer brokers may be paid by different parties or through a combination of seller, buyer, and brokerage arrangements.

The amount paid is not automatically divided equally, and no universal commission rate is required.

In Florida, an individual sales associate generally receives compensation through the employing broker rather than directly from a buyer, seller, or closing company.

After the brokerage receives payment, the agent's share may be reduced by:

• Brokerage splits
• Team splits
• Referral fees
• Transaction fees
• Franchise charges
• Marketing expenses
• Business expenses
• Taxes

For that reason, the amount paid by the consumer is not the same as the amount the agent takes home.

Buyers, sellers, and agents should discuss compensation early, place the agreement in writing, understand who is responsible for payment, and review all additional fees before entering a representation relationship.

Real estate compensation rules, brokerage policies, MLS practices, contracts, and laws may change. Consumers and licensees should rely on current agreements, brokerage guidance, Florida law, and applicable professional standards when evaluating a specific transaction.