Common use of Commission Splits Clause in Contracts

Commission Splits. For the calendar year, full time agents will receive the following for consummated sales of residential and/or commercial properties. This does not apply to rental commissions or new developments exclusively represented by BROKER. These splits apply from the date closed forward and are not retroactive. Gross commission is defined as commission actually received minus referral fees or commissions paid to co-brokers. The schedule is on a calendar year basis, and closing dates will determine the appropriate amount of commission. The incentive schedule applies to all monies earned for the company, including exclusive listing commissions and referrals. These commissions are subject to applicable listing fees. All referral commissions and fees to the outside will be charged off the top of each gross commission. Any agent-to-agent referral fee within BROKER will be deducted from the agent’s portion of the commission only. Cash incentives or bonuses paid by the buyer or seller are considered to be part of the gross commission. A cash incentive or bonus is any money received in excess of the standard percentage charged by the company and any other fees received in the course of business. If an agent ends the calendar year at a 55%, 60%, 65% or 70% split level, he/she will revert backwards 5% at the beginning of the next calendar year. Initial For example: ● To begin the year 2011 on a 55% split, an agent’s gross commissions must be at least $225,000 in the prior year. ● To begin the year 2011 on a 60% percent split, an agent’s gross commissions must be at least $300,000 in the prior year. ● To begin the year 2011 on a 65% split, an agent’s gross commissions must be at least $395,000 in the prior year. Incentive splits will be paid on all monies brought into the company by an agent.