Title: Explain how brokerage fees are determined and calculated.
Course: Real Estate (12154) > Section: Describing Brokerage and Agency Contract Responsibilities

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?