- A fee commonly paid to salespeople in a number of fields for closing a sale. Companies generally use commissions in order to incentivize their employees to work harder and close more deals.
- A fee paid to an agent or mortgage broker for negotiating a real estate or loan transaction, often expressed as a percentage of the property selling price. Mortgage brokers use commissions as a source of income so that they can offer advice to their clients.
cost for services, charge, fee
Related Terms and Acronyms
- Basis Point (BPS) — Acronym, Very Important,
➥ Used by mortgage brokers and lenders when discussing mortgage rates and determining commissions.
- A unit of measure: 1/100th of one percent. For example, the difference between a 9.0% loan and a 9.5% loan is 50 basis points.
- Buy-down — Definition,
- When a borrower or a mortgage broker "buys down" a mortgage rate, they make an upfront payment to the lender in order to lower the mortgage rate. A similar effect can be achieved by making a lump sum payment at the beginning of a mortgage term.
- Buy-down Mortgage — Definition, Important,
- A home loan in which the lender charges below-market interest in exchange for discount points.
- Cost of Living Adjustment (COLA) — Acronym,
- A method used to keep salaries and benefits in line with inflation by following an index such as the Consumer Price Index.
- Exclusive Listing — Definition,
- A legal agreement giving one real-estate agent the right to sell a property for a specified period, but owners retain the right to sell their property themselves without paying the agent commission.
- Insurance Broker — Definition,
- An agent who sells insurance policies.
- Mortgage Broker (MB) — Acronym, Important,
- One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
- No-Load Annuity — Definition,
- An annuity that pays the salesperson no commission and has low fees and expenses. A no-load annuity is often sold by an insurer directly.
- No-Load Life Insurance — Definition,
- A type of life insurance policy that is sold without a commission for the selling agent.
- Real Estate Agent — Definition,
- A person who is licensed to represent a buyer or seller of land and the buildings and other improvements on it.
- Real Estate Broker — Definition,
- An individual who is licensed to represent a buyer or a seller of real estate and collects commissions for the work. Most brokers have agents working for them and they collect a portion of those commissions in exchange for providing office space, marketing, and other overhead.
- Realtor — Definition,
- A real estate broker or an associate holding active membership in a real estate board.
- Seller Broker — Definition,
- One who earns a commission from the seller of a property in exchange for finding a buyer and assisting in negotiation.