Explanation should include
- the fact that fees are calculated based upon mutual agreement of the employing broker and the sales associate
- definitions
- property’s sales price
- flat rate
- hourly rate.
DPOR correlations: 18VAC135-20-400. 15 (Brokerage and agency contract responsibilities); 18VAC135-20-400. 25 (Real estate board regulations)
Process/Skill Questions:
- What is the purpose of brokerage fees?
- How are brokerage fees calculated? Who determines brokerage fees? Is there a standard fee charged for brokerage services?
- What remedies are available if fees are not paid?
- How are the fees split between the broker and agent, if necessary?
- What is the typical commission percentage?
- Who determines the seller’s agent and buyer’s agent commission rate in a transaction?
- Who can a brokerage discuss fees with and why?