As a professional, it is important to understand the terminology and phrasing used in the real estate industry. One common term that arises in transactions between real estate brokers is a verbal agreement to split a commission.

In a real estate transaction, the commission is the fee paid to the real estate broker for their services in facilitating the sale of a property. This commission is typically a percentage of the sale price of the property and is paid at closing. In some cases, there may be more than one broker involved in the sale. In these situations, the brokers may agree to split the commission between them.

A verbal agreement between two brokers to split a commission is a non-written agreement made between the two parties. While it is not legally binding, it is still a valid agreement that both parties are expected to honor. It is important to note that a verbal agreement may not hold up in court, so it is always recommended to have a written agreement in place to protect all parties involved.

If the brokers have agreed to split the commission, they must ensure that the commission split is clearly stated in the purchase agreement. This ensures that all parties, including the buyer and seller, are aware of the commission split and the amount of commission being paid to each broker.

There are several factors to consider when deciding on a commission split. The most common split is a 50/50 split between the listing broker and the buyer’s broker. However, this split can be negotiated between the brokers based on various factors, such as the amount of work each broker contributed to the sale or the amount of commission each broker typically charges.

In conclusion, a verbal agreement between two brokers to split a commission is a common agreement in the real estate industry. While it is not legally binding, it is still a valid agreement that both parties must honor. It is recommended to have a written agreement in place to protect all parties involved and to ensure that the commission split is clearly stated in the purchase agreement. As a professional, it is important to understand the terminology and phrasing used in the real estate industry to effectively communicate these concepts to readers.