Real estate commissions are a fee that is paid by the seller of a property to the real estate agent or brokerage that represents them in the sale.   The commission is typically calculated as a percentage of the sale price of the property and is paid at the time of the closing. In a typical transaction, the commission is split between the buyer's agent and the seller's agent, with each agent receiving a portion of the total commission.   The exact percentage of the commission that each agent receives may vary, but it is typically negotiated in advance and agreed upon by both parties.   Commissions are the primary source of income for real estate agents and are typically used to cover their operational costs and to compensate them for their time and expertise. | Most Searched Real Estate Questions