A Commission Split refers to the arrangement of sharing commissions earned between a sales agent and sponsoring broker, or between the selling broker and listing broker. This arrangement ensures that all parties involved in the transaction are compensated according to their contribution.
A plan offered by some real estate brokers that allows buyers or sellers to contract for less than the full array of brokerage services at reduced commission rates.
An arrangement among a group of real estate brokers to share information on properties, ensuring commissions from sales are split between listing and selling brokers.
Ordinary income refers to any type of income that is taxed according to the standard income tax rates established by taxing authorities. This category includes wages, salaries, commissions, interest, and other types of income that do not receive special tax treatment like long-term capital gains.
A real estate salesperson is a licensed individual who performs real estate-related activities under the supervision of a licensed broker, as stipulated by state real estate laws.
