Understanding Real Estate Commission

Real estate commission structures vary by market and are typically a percentage of the property sale price. The commission is split between the brokerage and the agent based on their agreed split arrangement.

Typical Commission Structures

• UAE — 2% paid by the buyer, plus 5% VAT on the commission amount
• Canada — 3-5% total split between listing and buying agents, plus 13% HST
• US — 5-6% total, typically split 50/50 between listing and buyer agents
• UK — 1-3% paid by the seller (plus 20% VAT)
• Australia — 1.5-3.5% paid by the seller

Agent Splits

Within a brokerage, agents typically receive 50-80% of the commission their side earns. Senior agents and top performers often negotiate higher splits, while newer agents start lower but receive more training and lead support. Some brokerages offer 100% commission models with a fixed desk fee instead.