David Saks: Commissions

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663



Before a salesperson is compensated, doesn't an agreement have to exist between the broker and the salesperson regarding the amount or type of compensation with the company?

Do you share the commission from the transaction or receive a fixed salary?

To be entitled to a commission one must be licensed, a procuring cause of the sale, and employed by your seller, or buyer, under a legitimate, binding, and legally acceptable contract.

What kind of commission plans have you experienced in your career as a real estate professional?

100%, splits of varying degree, 50/50, graduated, compensated with service charges ?

Thanks to all for your good thoughts.

David Saks

Time&Temp Memphis

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Comment balloon 10 commentsDavid Saks • April 27 2008 12:09AM


This is different  in different states. In most states verbal contracts are binding. Not for Real Estate Sales themselves, but listing agreements and employment agreements can be oral.

Dont't work for a Broker you don't trust.

Commission splits are quite negotiable.

All the best!

Posted by Kevin O'Shea, White Plains, NY Real Estate (Coldwell Banker) about 12 years ago

In my office we must present a complete file that would withstand any visit from our friendly state auditor and of course the commission check.  We are on a 5/70/30 split.  We can elect to pay all of our expenses & desk fees monthly and get a 5/95 split.  We do agree in writing. 

Hope this helps.  Good luck to you!

All the Best!

Posted by Kathy Fisher Sells Lexington TN homes! 731.845.3413 (Five Star Real Estate Services) about 12 years ago
In California all needs to be in writing if you want to get paid. An agent signs a contract with their broker. The 2 offices I previously worked in, there was no fee per month only a split starting at 60/40 and increased to 90/10, in January, the split went back to 60/40. I now work for a franchise and there is a $300 fee per month and I negotiated a fixed 80/20 split. Some companies charge 6% off the top of the commission before the split!
Posted by Jean Powers, CRS,e-PRO,HAFA,SFR Broker, Northern California (Kane & Associates call 510.908.9002) about 12 years ago
I have worked on 100% with associated costs, 80/20 but now choose 70/30 due to broker compensation on marketing. Hope this helps.
Posted by Vickie Nagy, Vickie Jean the Palm Springs Condo Queen (Coldwell Banker Residential Real Estate) about 12 years ago

David.....everything is negotiable.  I would guess most states state you must have a written agreement with you broker on compensation and due's and don'ts.  In California we are required to have everything in writing.

Posted by Pam Winterbauer, "Providing Blue Ribbon Service" (Pam Winterbauer Real Estate) about 12 years ago
Good thoughts, Kevin.
Posted by David Saks ((retired)) about 12 years ago
Sounds like a fine system, Kathy.
Posted by David Saks ((retired)) about 12 years ago
Good points, Jean. Many thanks for the good info.
Posted by David Saks ((retired)) about 12 years ago
Interesting, Vicki. Thank you for posting.
Posted by David Saks ((retired)) about 12 years ago
Everthing should be when it's about your commission, Pam. Many thanks.
Posted by David Saks ((retired)) about 12 years ago

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