FLORIDA LISTING AGREEMENT – COMMISSION CLARIFICATION

FLORIDA LISTING AGREEMENT – COMMISSION CLARIFICATION

FLORIDA LISTING AGREEMENT – COMMISSION CLARIFICATION

Paragraph 8 reflects the total commission the seller is paying to the listing broker. This amount may or may not be shared with a cooperating broker.
Paragraph 10 determines how the cooperating broker is paid:
Option 10(a)
The cooperating broker’s commission is paid out of the amount listed in Paragraph 8.
  • Because of this, the percentage in 10(a) cannot exceed the percentage in Paragraph 8.
  • Example: If Paragraph 8 is 3% and 10(a) is 3%, then the listing broker receives $0.
Option 10(b)
The cooperating broker’s commission is paid directly by the seller, in addition to the amount in Paragraph 8.
  • This amount is not deducted from Paragraph 8.
  • Example: If Paragraph 8 is 6% and 10(b) is 3%, the seller is agreeing to pay a total of 9% commission.
In short:
 The seller is either:
  1. Paying one total commission to the listing broker (who then pays the buyer’s broker) — 10(a)
  2.  OR
  3. Paying the listing broker AND paying the buyer’s broker separately — 10(b)

Make sure to read these sections carefully so the commission structure reflects what the seller actually intends to pay.

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