Typically, the seller of commercial property covers the brokerage fees, which are then split between the listing agent and the buyer’s agent. For example, if a property sells for $1 million with a 6% commission, the seller pays $60,000. This sum is then divided between the brokers involved, according to prior agreements. However, variations exist; the specific terms are outlined in the listing agreement and the buyer’s representation agreement.
Clear delineation of responsibility for these fees is crucial for all parties involved. This clarity facilitates smoother transactions by managing expectations and preventing disputes. Historically, established practices surrounding real estate commissions have evolved alongside property laws and market dynamics, reflecting the increasing complexity of commercial transactions. Understanding these fee structures is fundamental for both buyers and sellers to navigate the market effectively.
