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Main Real Estate Terms commission

commission



Real estate: percentage of the selling price of the property, paid by the seller.
Securities: fee paid to a broker for executing a trade based on the number of shares traded or the dollar amount of the trade. Since 1975, when regulation ended, brokers have been free to charge whatever they like.

Dictionary of Banking Terms commission

broker's charge for executing a trade. fee, a percentage of the selling price of property, paid to a real estate broker. fee paid to a bank'strust department, normally a percentage of the income from a trust account.

Dictionary of Business Terms commission

fee paid to an employee or agent for services performed, especially a percentage of a total amount received in a transaction, as distinguished from salary, which is a fixed amount payable periodically. type of governmental regulatory body, such as the Federal Trade Commission.

Dictionary of Insurance Terms commission

fee paid to an insurance salesperson as a percentage of the premium generated by a sold insurance policy.

Dictionary of Marketing Terms commission See alsoagency commission Dictionary of Real Estate Terms commission

an amount earned by a real estate broker for services performed.
Example: Broker Roberts sells a $300,000 home for a client. At a 6% commission rate the client owes the broker an $18,000 commission.

the official body that enforces real estate license laws. See Figure 39.
Example: The State Real Estate Commission administers the real estate licensing examination, collects license fees, hears testimony from those who claim misconduct on the part of a licensee, and may punish offenders.

Related Terms: Dictionary of Marketing Terms agency commission

fee that an advertising agency charges a client for time and effort spent in selecting and supervising production work done by another company (e.g., printing, photoengraving, photography, commercial recording, filming, and film editing). The amount charged the client is usually 17.65% of the gross production cost. compensation paid to advertising agencies by the media (broadcast or print) for purchases of time or space made on behalf of clients. Since the ad agency saves the media the expense of direct sales and billing, the media allows the agency a 15% discount (16.67% for outdoor advertising), based on the gross advertising rate billed to the client. (The discount also serves as incentive to the agency.) For example: If XYZ Corporation spends $1 million on advertising placed through a recognized ad agency, the agency commission is $150,000 and the balance of $850,000 is paid to the media. The agency commission system represents the basic financial structure of the ad agency business. See also fee basis.
Magazines: amount paid a subscription agency for its efforts in selling a subscription, based upon a percentage of the price paid by the subscriber. Agents are usually paid 80% to 90% of the selling price, depending on the expected impact of that magazine on the agent's total sales goal. Some magazines are featured in order to draw attention to other titles the agent sells, and the publishers of the featured magazines are rewarded with lower commission payments.

Referring Terms: `
real estate commission


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commission