California · Chapter 17 of 59
Commissions and Fees
How commissions are earned and paid, procuring cause, commission splits, and who can receive compensation.
20-minute read · Built for the DRE Salesperson Exam
procuring causeready willing and ablecommission splitreferral feeunlicensed persons cannot receive compensation
How Commissions Are Earned
A real estate commission is earned when the agent produces a buyer who is 'ready, willing, and able' to purchase on the seller's terms, or when the property actually sells. In California, commissions are fully negotiable between the broker and the client. There is no standard commission rate. Any statement suggesting a required or standard commission rate violates antitrust laws.
B&P Code §10147.5 (commission disclosure)
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