How is the commission to be paid determined?

The commission to be paid in a real estate transaction is determined by the agreement between the seller and the agent, which is outlined in their contract. This contract typically specifies the commission rate that the seller will pay to the agent upon successful completion of the sale. It reflects the negotiations between the two parties, taking into account the services provided by the agent and any unique circumstances of the transaction.

While there may be industry norms or standards regarding commission rates, each seller and agent can negotiate their specific terms as part of their contractual agreement. This flexibility allows for variations in commission rates depending on the particular situation, market conditions, and the value brought by the agent.

The involvement of agency regulations or local real estate boards might influence practices in a general sense, but the commission is fundamentally a product of mutual agreement between the agent and the seller.