Explanation should include
- when an agent is paid
- how an agent is paid
- a breakdown of real estate commissions
- listing side
- selling side
- broker-to-agent
- agent-to-team (if applicable)
- agent’s tax responsibilities.
DPOR correlations: 18VAC135-20-400. 15 (Brokerage and agency contract responsibilities); 18VAC135-20-400. 25 (Real Estate Board regulations)
Process/Skill Questions:
- How can one represent agency compensation using a flow chart?
- What is the process for earning commissions?
- What is a commission?
- How are commission rates determined? Can commissions vary from agency to agency, and, if so, how?
- Who is involved in a commissions split decision? Are they negotiable?
- Are commission agreements enforceable if not in writing?