Where Does the Commission Go? How a Real Estate Commission Split Works in a Florida Home Sale

A real estate commission split is the way one fee gets divided after a home sells. As a seller, you sign one listing agreement and see one commission line at closing. But that money rarely stays in one place. It can pass from the listing brokerage to a buyer's brokerage, then from each brokerage to its agent, and sometimes to a referral partner or a franchise. This guide follows the money step by step for a Florida sale, explains what changed after the 2024 NAR settlement, and shows what you can ask about before you sign. It does not try to judge whether the fee is worth it; our post on why Realtors make so much covers agent income and value. Here we only trace where each dollar goes.

Key takeaways

• In Florida, the commission is paid to the brokerage, not straight to the agent. State law says a sales associate may not collect money in a deal except in the name of their employing broker.
• Since August 17, 2024, offers to pay a buyer's broker cannot appear on the MLS. Sellers can still offer it, but the terms are set off the MLS and in writing.
• Each brokerage then splits its share with its agent under a private agreement. NAR says most Realtors work on a broker and agent split.
• Referral fees, team splits and brokerage fees can also come out of the agent's share. None of them change what the seller pays.
• Commissions are not set by law in Florida. Every part of the fee is negotiable.

How a real estate commission split works in Florida

Start with the listing agreement. You agree to pay the listing brokerage a fee when the home sells. That fee can be a percentage, a flat amount or a mix. Then, at closing, the title or closing agent pays the fee out of your sale proceeds. On the federal Closing Disclosure, real estate commissions show up in Section H, under "Other."

Florida law shapes the next step. Under section 475.42 of the Florida Statutes, a sales associate may not collect any money in a brokerage deal except in the name of the employer and with the employer's consent. So the check goes to the brokerage first. Only after that does the brokerage pay its agent.

In practice, a full real estate commission split often has two layers. The first layer is between the two brokerages, if the buyer has an agent. The second layer is inside each brokerage, between the broker and the agent who did the work.

Layer one: listing broker and buyer's broker

For decades, the listing broker offered part of the fee to whichever brokerage brought the buyer. That offer used to sit on the MLS. However, the NAR settlement changed that on August 17, 2024. Offers of pay to a buyer's broker can no longer go on the MLS.

Sellers can still pay a buyer's broker. The offer just has to be made another way. In Florida, that usually means a contract rider. Rider GG makes the sale contingent on a signed compensation agreement. Rider FF gives the buyer a credit that the buyer can use toward their own broker. Our guide to the buyers agent fee walks through all four payment paths in detail.

Buyers now sign a written agreement with their agent before touring homes. That agreement sets the agent's pay as a clear figure. So the buyer side of the real estate commission split is now negotiated in the open, rather than assumed from an MLS field.

How big is the buyer's broker share?

No law sets it, and no official local rate exists for Palm Beach County. Redfin's national data put the average buyer's agent commission at 2.42% in the third quarter of 2025. Treat that as a sense of the market, not a quote.

Layer two: the broker and agent real estate commission split

Once a brokerage gets paid, it splits its share with the agent under a private contract. The seller never signs that contract and does not pay more because of it. Still, it helps to know how it works, because it explains why agents treat fees the way they do.

According to NAR, the majority of Realtors work on a broker and agent commission split. NAR's agent income page also reports that Realtors earned $58,100 in 2024 and spent a median of $8,010 on business costs. Those costs can include marketing, dues, licensing, insurance and the agent's own car and phone.

Traditional split

Under a traditional plan, the agent keeps a set share of each fee the brokerage collects on their deals. The brokerage keeps the rest. In return, the brokerage usually supplies training, office space, tools, a brand and legal support. The exact shares vary by firm and by agent, so there is no standard figure to quote.

Graduated and capped splits

Some firms raise the agent's share as the agent closes more business in a year. Others use a cap. In that case, the brokerage takes its share until it reaches a set dollar amount for the year. After that, the agent keeps a larger share for the rest of the year.

100 percent and flat fee plans

Under a 100 percent plan, the agent keeps the whole fee the brokerage collects on their deal. Instead, the agent pays the brokerage a monthly desk fee, a per-deal fee or both. Even then, the money still flows through the brokerage first, as Florida law requires.

Other slices that can come out of the fee

A few other parties can take a piece. They all come out of the brokerage or agent side, not out of extra money from the seller.

• Referral fees. If another agent sent you to your listing agent, that agent's brokerage may get a share. In Florida, these go broker to broker.
• Team splits. Many agents work on teams. The team lead may keep part of the agent's share for leads, staff or marketing.
• Franchise and transaction fees. Some brands charge a royalty or a per-deal fee. Some brokerages also charge a fixed fee on each closing.

So the agent who sat at your kitchen table usually takes home a good deal less than the gross fee. Our post on why Realtors seem to make so much looks at that gap from the agent's side.

A worked example of a real estate commission split

Here is a simple example with round numbers. The figures are made up for clarity. They are not typical rates and not a quote.

Say a single-family home sells for $650,000, which was the Palm Beach County median in August 2026, according to Miami Realtors. Then say the seller agreed to pay a total fee of $26,000. Of that, $13,000 goes to the listing brokerage and $13,000 goes to the buyer's brokerage under a signed compensation agreement.

1. Closing. The closing agent pays $13,000 to each brokerage from the seller's proceeds.
2. Referral. Suppose another brokerage referred the seller for a 25% referral fee. The listing brokerage pays $3,250 of its $13,000 to that brokerage, which leaves $9,750.
3. Listing side. Now suppose the listing agent's plan pays them 70% of what is left. The agent gets $6,825, and the brokerage keeps $2,925.
4. Buyer side. The buyer's brokerage runs its own split with its own agent. The seller has no part in it.

The seller pays $26,000 in every version of this example. The splits only change who keeps what. To see how a fee changes your net, try our seller closing costs calculator.

What sellers get for the listing fee

The listing fee pays for work you see and work you don't. Most of it happens before and after the showings. It typically covers pricing, prep advice, photos, marketing, showings, offer review, negotiation and managing the deal through inspection, appraisal and closing. It also pays for the deals that fall apart, which agents do not get paid for.

Still, not every listing includes the same things. So ask for a written list of what the fee covers. For example, does it include professional photos, a floor plan, staging advice or paid ads? A clear list makes it easier to compare agents on value, not just on rate.

Questions to ask about the real estate commission split

You don't need to know your agent's private split. However, you should know how your own fee is set up. These questions help.

• What is the total fee, and is it a percentage, a flat fee or both?
• Does the fee change if the buyer has no agent, or if I find the buyer myself?
• How will you handle a request to pay the buyer's broker? Will we decide up front or offer by offer?
• Are there any added brokerage or admin fees charged to me at closing?
• What happens to the fee if the deal falls through or I cancel the listing?

Write the answers into the listing agreement. In Boca Raton, West Palm Beach and across the county, sellers who ask these questions early tend to get fewer surprises on the settlement statement.

Florida rules that shape the real estate commission split

Two more Florida rules are worth knowing. First, under section 475.278 of the Florida Statutes, a licensee is presumed to work as a transaction broker unless a single agent relationship is set up in writing. Dual agency is not allowed. That affects what duties your agent owes you, but not how the fee is split.

Second, the standard Florida Realtors riders state that broker commissions are not set by law and are fully negotiable. So the total fee, the buyer's broker share and any credit are all open to discussion before you sign.

Frequently asked questions

Who pays the real estate commission split in Florida?

The seller usually pays the listing brokerage from the sale proceeds at closing. The buyer's broker can be paid by the buyer, by a seller credit, or by the seller or listing broker under a compensation agreement. Each brokerage then pays its own agent.

Does my agent keep the whole commission?

Usually not. The fee goes to the brokerage first, as Florida law requires. The brokerage then shares it with the agent under their own contract. Referral fees, team splits and franchise fees can also come out of it.

Can I see my agent's real estate commission split?

That is a private contract between the agent and the brokerage, so you may not get the details. What you can and should see is your own fee, in writing, along with what it covers.

Did the NAR settlement change the split between brokers?

It changed where the offer can appear. Since August 17, 2024, offers to pay a buyer's broker can't go on the MLS. Sellers can still agree to pay off the MLS, often through Rider GG in Florida.

Is there a standard commission in Palm Beach County?

No. Commissions are not set by law and are fully negotiable. A national average from Redfin can give you a rough sense of the market, but your fee depends on your home, your price and the services you choose.

Sources

• Florida Statutes, section 475.42
• Florida Statutes, section 475.278
• National Association of Realtors, The facts about the NAR settlement
• Florida Realtors, NAR settlement FAQs
• Florida Realtors, Buyer options to compensate their brokerage firm
• Florida Realtors, Rider GG
• National Association of Realtors, Agent income
• Redfin, Buyer's agent commissions, Q3 2025
• Consumer Financial Protection Bureau, Regulation Z 1026.38 (Closing Disclosure)
• Miami Realtors, Palm Beach County August 2026 home sales

This article is general information, not legal, tax or financial advice. Commission terms are set by contract, so review your listing agreement with a licensed real estate attorney or advisor if you have questions.

Want to see where every dollar of your fee goes? We put the fee, the services and your estimated net on paper before you sign. Book a no-obligation listing consultation or check what your home is worth. Buying instead? Ask us how a buyer agreement sets your agent's pay.