Title: Explain agency compensation.
Course: Real Estate (12154) > Section: Closing the Transaction

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?