Structuring the Commission Reduction



An agent I am working with is reducing her commission to make the deal work.

The Confirmation of Cooperation and Representation (CCR) that outlines the full amount so does the listing agreement paid to the cooperating brokerage.

She doesn’t want to add the change to an Amendment.


In the CCR you can adjust the Co-op commission. If you reduce it by half a percent, the outstanding issue is where does it go.

If you leave it alone, that percentage goes to the Listing Brokerage.

You can amend the CCR to reduce the amount going to the Listing Brokerage. But, that’s now public, certainly if you were to note the original amount, and then the new amount.

If you want to keep it private, then the Listing Agreement can be amended, or reference can simply be made to the percentage reduction.

Brian Madigan LL.B., Broker

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