How does the commission work? How does the Buyer's agent get paid?

I am doing my first commercial property. In residential, the commission is already written into the listing on the MLS and paid at closing. Does commercial work the same? If so, how do I find out what the commission is and if not, is the commission paid separately by the Buyer to their agent. How is it written into the agreement or is it on a separate document?
In Buying Property - Asked by Kimber J. - Jun 2, 2009
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Answer(s)

John D.
Broker/Agent
Plymouth, MA

Commercial commissions vary by listing. I would suggest contacting the listing agent ahead of time and ask if they are co-broking and if so at what rate. Then ask for a confirmation e-mail for your protection. It is best to prepare your Buyer that they may be responsible for your commission. Let them know what you require right up front and explain that if a Selling agent is cooperating on commission, it may cost them less or nothing at all.

Jun 3, 2009
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Arthur R. G.
Broker/Agent
Lincoln, RI

There is no set rules regarding commercial sale transactions. However the commission split is negotiated up front between the buying and selling agent and a percemtage split is agreed upon up front. The P & S agreement is likely to identify who the cooperating brokers might be which puts everyone on notice, but in rare circumstances will the amount or perceentage be noted.

Jun 4, 2009
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Justin W.
Broker/Agent
Orlando, FL

I like the answers below.....but always know who you are dealing with. In commercial transactions, you are responsible for your commission. No One is going to protect you like the MLS laws do. CYA all the time, ask other Brokers about which landlords, tenants, owners have been known NOT to pay. Good Luck, and congrats!

Jun 4, 2009
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