Real estate agents work for a real estate broker and all fees paid to a real estate agent are than passed through the real estate broker.

Real estate agents are compensated by the broker and divisions can vary.  New agents can receive as little as 30 to 40 percent of the total commission received by the brokerage.  Other fees may be deducted from that amount to incude, advertising, office expenses and sign rentals.  Top producing agents might even receive 100 percent and pay the broker a desk fee.

Listing agents receive the exclusive right to market a seller’s home.  The seller agrees to pay the commission to the broker which is representaed as a percentage of the sales price and shared between the listing broker and the buyer’s agent or broker who brings the buyer.

Buyer’s broker fee is paid to the broker most commonly paid by the seller.  Some buyer broker agreements contain clauses to compensate the brokerage for the fee it is due, less the amount paid by the seller.