Direct answer
What does commission mean?
Commission is compensation paid for brokerage services under an agreement.
Exam cue: Apply the rate to the base identified in the question and then follow any split instructions.
What does it look like in a question?
Example
A 5 percent commission on a $600,000 sale is $30,000 before splits and other allocations.
Common exam trap
What should you not confuse it with?
Commission rates are negotiable and are not fixed by New York law.
Related real estate math terms
AcreAn acre is a land-area unit equal to 43,560 square feet.AreaArea is the amount of surface within a two-dimensional boundary.Capitalization rateA capitalization rate is a rate that relates a property's net operating income to its value or price.MillA mill is a property-tax rate unit equal to one dollar of tax per one thousand dollars of taxable value.PercentageA percentage is a ratio expressed as a part of one hundred and written with the percent symbol.ProrationProration is the allocation of income or expense between parties for their respective periods of ownership or responsibility.
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