What Is a Real Estate Commission Split?

When a commission is earned, it does not all go to the agent.

The brokerage keeps part of it.

The rest is paid to the agent.

That division is called the commission split.

The commission split is always between:

• The brokerage
• The agent

Not between the client and the agent.

The client pays the brokerage.

Then the brokerage pays the agent.

Once a transaction closes:

• The brokerage receives the commission
• The brokerage applies the agreed split
• The agent receives their portion

For example:

If the commission on one side is $10,000:

• The broker may keep a portion
• The agent receives the rest based on their split

The exact percentages vary by brokerage.

There is no single structure.

Different brokerages use different models.

Traditional Split

The brokerage and agent share the commission based on a percentage.

Examples:

• 70/30
• 80/20
• 90/10

The agent receives the larger portion as the split improves.

Capped Model

Some brokerages have a cap.

The agent pays a split until they reach a maximum amount for the year.

After that:

• The agent may keep 100% of commission
• Only small fees apply

Flat Fee Model

Some brokerages charge a flat fee per transaction instead of a percentage.

This is how Easy Realty is structured.

The agent keeps the rest of the commission after paying the flat transaction fee.

Commission splits are determined by the agreement between:

• The agent
• The brokerage

This is usually outlined in the independent contractor agreement.

The brokerage has full authority over:

• The split structure
• Any fees
• How compensation is calculated

The split does not change who earns the commission.

The brokerage still:

• Earns the commission
• Controls the funds
• Authorizes payment

The split only determines how the agent is compensated.

Many agents think:

“I get 100% commission.”

What that usually means is:

The brokerage takes a flat fee instead of a percentage.

The agent still pays the brokerage.

The brokerage still earns the commission.

Understanding commission splits helps you:

• Understand your actual income
• Compare brokerage models
• Set expectations properly
• Avoid confusion about compensation

It also reinforces how the business actually works.

A commission split is how the brokerage pays the agent.

The brokerage earns the commission and then shares a portion with the agent based on their agreement.

Different brokerages use different models, but the structure is always controlled by the broker.