Where does a salesperson's commission come from?

A salesperson's commission comes primarily from the employing broker. In real estate transactions, salespersons typically work under the umbrella of a licensed broker. The broker receives the commission from the transaction, which is then split between the broker and the salesperson according to the terms of their agreement. This relationship reflects the hierarchical nature of real estate practices, where the broker oversees the operations and financial arrangements, providing support and resources for the salesperson to effectively conduct their business.

While it is possible for a transaction to involve agreements that include payment from both buyers and sellers, the fundamental structure is that the broker manages and dispenses the commission, reinforcing the necessity for real estate professionals to operate within the framework established by their broker. This also ensures compliance with licensing laws and organized business practices within the industry.