Quick answer (TL;DR)
A commission split with your broker is the share of each commission you keep after your brokerage takes its portion. Florida law does not set that percentage: chapter 475 requires that a sales associate collect commission money only in the employer’s name, and the division of it is a term of your independent contractor agreement. Plans differ in four ways: a fixed or tiered split, a cap on what the brokerage collects in a year, flat or monthly fees, and fees that sit outside the split. To compare them, convert every plan into the dollars you would keep at your own closing volume.
A “90/10” brokerage is not automatically cheaper than an “80/20” one, and “100% commission” does not mean “no cost.” The split is only one line in what a brokerage charges you.
This guide is for licensed Florida sales associates and broker associates who are comparing brokerages. It explains the plan types, shows the arithmetic with labelled made-up numbers, lists the fees that sit outside the split, and ends with a worksheet. It names no brokerage’s rates. Florida legal points are from the 2026 Florida Statutes as read on October 21, 2026.
What a commission split with your broker is
When a Florida transaction closes, the commission is earned by the brokerage, not by you personally. Section 475.42(1)(d), Florida Statutes, says a sales associate may not collect money in connection with a brokerage transaction “except in the name of the employer and with the express consent of the employer.” So the money arrives at the brokerage first. A split is the written arrangement for how the brokerage then divides it between the firm and you.
Section 475.42(1)(d) also says an associate may sue for a commission only against the person registered as her or his employer when the work was done. That makes your agreement with your broker the document that decides your share. The sections of chapter 475 reviewed for this guide (475.01, 475.25 and 475.42) do not set a split percentage, a cap or a fee schedule between a broker and an associate.
Section 475.01(2) says “employer” and “employee” in chapter 475 include an independent contractor relationship when the broker and associate intend and establish one. The same subsection says it does not relieve either side of duties under the chapter. Whether you are one is a question for your attorney and CPA.
Section 475.25(1)(u) makes it grounds for discipline for a broker to fail to direct, control or manage an associate. Part of what a brokerage fee pays for is that supervision, so compare what each firm provides, not only the percentage.
The main commission plan types
The same label can mean different things at different firms. These are working definitions, not legal terms. None of these labels is defined in the sections of chapter 475 reviewed for this guide, which is why the written agreement matters more than the name on the marketing page.
| Plan type | How it works | What to ask |
|---|---|---|
| Traditional (fixed) split | Each commission is divided at one agreed ratio, such as 70/30, where the first number is the agent’s share. | Is the ratio applied to the gross commission or to what is left after deductions? Are there other fees? |
| Tiered or graduated split | The ratio improves for you as your production in a period rises, for example after a set amount of commission or number of closings. | What counts toward the tier, and when does the count reset? |
| Capped plan | You pay the brokerage its share until the brokerage has collected a set dollar amount in a period. After that you keep a larger share, often with a smaller per-transaction fee. | Does the cap run from your start date or the calendar year? Which payments count toward it: only the brokerage’s share, or fees as well? |
| 100% commission with fees | No percentage goes to the brokerage. It charges fees instead, such as a fee on each transaction, a monthly fee, or both. | The total of every fee at your volume. “100%” describes the split only, not your cost. |
| Flat fee per transaction | A fixed dollar amount per closed side, regardless of price, in place of a percentage. Do not confuse it with consumer flat-fee listing services, which charge sellers. | Per side or per deal? Is there a yearly limit? |
| Revenue share | A separate program that pays you based on other agents’ production in a network. It is not a commission plan and does not change your own split. | Who pays it, from what, and what does it depend on? See the section below. |
What a cap is, in plain terms
A cap is a ceiling on what the brokerage collects from you in a period. Suppose a plan gives the brokerage a 20% share of each commission until it has collected $12,000 in a year. That point arrives after $60,000 of gross commission. After that, commission goes to you apart from any fees the plan still charges. What changes its value is when the year starts and what counts toward it: if transaction fees count, you reach the cap sooner.
How to compare plans: the arithmetic
These numbers are made up. The three plans below are hypothetical, built only to show how the math works. They are not LPE Realty’s plan and they are not any other brokerage’s plan. Use your own figures and the real fee schedule from each firm.
Assume every closed transaction pays a $10,000 gross commission and only the number of closings in a year changes. The hypothetical plans are:
- Plan A: a 70/30 fixed split with no other fees.
- Plan B: an 80/20 split, with the brokerage’s share capped at $12,000 a year. After the cap, the agent keeps 100% of each commission. No other fees.
- Plan C: no split, a $250 fee on each closed transaction, and a monthly fee that totals $3,600 over the year.
| Closings in the year (each $10,000 gross) | Gross commission | Agent keeps: Plan A | Agent keeps: Plan B | Agent keeps: Plan C |
|---|---|---|---|---|
| 1 closing | $10,000 | $7,000 | $8,000 | $6,150 |
| 4 closings | $40,000 | $28,000 | $32,000 | $35,400 |
| 12 closings | $120,000 | $84,000 | $108,000 | $113,400 |
How each cell is figured. Plan A keeps 70% of the gross. Plan B takes 20% until the $12,000 cap, reached after the sixth closing, so 12 closings cost $12,000 in brokerage share, not $24,000. Plan C subtracts $250 per closing plus $3,600 for the year.
Two things show up. The best plan changes with volume: Plan B wins at one closing and Plan C wins at four and twelve. And the “no split” plan was the worst at one closing, because a monthly fee does not care whether you closed. A cap you will not reach in a normal year behaves like an ordinary split.
The table leaves out insurance, MLS and association dues, technology, marketing and income tax. Add those from the real fee schedule and use your own average commission. This guide does not quote an “average split” because no Florida statute or DBPR page reviewed for it gives one.
Fees that sit outside the split
Many cost surprises come from fees that were not in the headline plan. These are the categories to ask about. Each brokerage sets its own fees, and this guide gives no amounts.
| Fee category | What it is | Questions to ask |
|---|---|---|
| Franchise or royalty fee | A charge connected to a franchise brand, sometimes passed to agents as a line item or built into the split. | Built into the split, or extra? Does it count toward the cap? |
| Transaction fee | A charge per closed side, often a fixed dollar amount. | Per side or per deal? Does it continue after the cap? |
| Monthly or “desk” fee | A recurring charge, billed whether or not you close. | What does it cover? Is it ever waived? |
| Technology or platform fee | Charge for the brokerage’s systems, such as transaction management, a CRM or a website. | Is any of it optional? Does it replace tools you would buy anyway? |
| E&O insurance | Errors and omissions coverage, either through the firm’s policy or one you buy. | Who is covered, and does coverage continue for files that close after you leave? |
| Compliance, file or administrative fee | A charge for transaction review and record keeping. | Is it on every side? Is it charged to you, the client or both? |
| MLS and association dues | Paid to the MLS and the Realtor association. Some brokerages pay or bill them for you. | Does the brokerage pay any of them, or do they bill you directly? |
| Onboarding or exit fee | A one-time charge to join or leave. | Is any fee due when you leave, or on pending deals? |
| Lead or referral fee | A share of the commission on a lead the brokerage supplies, or a referral paid to another firm. | Is it optional? Does it come off before the split or after? |
For the cloud model, our guide to how cloud-based real estate brokerages work in Florida explains what it does and does not change. The same fee questions apply.
Revenue share is a separate thing
Some brokerages advertise a revenue share or “attraction” program alongside their splits. It is a payment tied to other agents’ production inside a network. It does not change your split on your own deals, so treat it as a separate offer and ask for it in writing.
Ask who pays it, from which money, and what happens to it if you leave. Section 475.25(1)(h) lists as grounds for discipline sharing a commission with, or paying a fee to, a person who is not properly licensed as a broker, broker associate or sales associate in Florida, for referring real estate business. It has a limited exception for brokers licensed in a foreign state.
What Florida law says, and what it leaves to contract
Beyond the points above, two rules apply to any Florida plan:
- A sales associate may not operate for any person who is not registered as her or his employer (s. 475.42(1)(b)).
- A sales associate must immediately place with her or his registered employer any money or deposit entrusted to the associate by a person dealing with the associate as agent of the employer (s. 475.25(1)(k)).
Everything else about your pay is contract: the ratio, the tiers, the cap, each fee, when you are paid after closing, and what happens to deals still open when you leave. If you are weighing a move, our guide to how to change real estate brokerages in Florida covers the DBPR filing and what typically stays with the old firm. If your question is who your broker is and what that role involves, see what a sponsoring broker is in Florida and sales associate vs broker associate vs broker.
A note on the 2024 Realtor rule changes. The National Association of Realtors’ settlement FAQ describes MLS policy changes effective August 17, 2024, covering offers of compensation on an MLS and written agreements between buyers and brokers. One question on that page asks whether agreements should carry a conspicuous disclosure that compensation “is not set by law and is fully negotiable.” This guide covers the separate arrangement between a brokerage and its own agents, which your agreement governs.
Your comparison worksheet
Copy this table into a spreadsheet and fill in one column per brokerage from its written fee schedule or agreement, not from a conversation. A cell the brokerage will not answer is information too.
| What to record | Firm 1 | Firm 2 | Firm 3 |
|---|---|---|---|
| Split at the start (agent / brokerage) | |||
| Does the split improve with volume? At what level, and when does it reset? | |||
| Cap amount, and the date the cap year starts | |||
| What counts toward the cap, and fees after it | |||
| Transaction fee (per side or per deal) | |||
| Monthly, desk or technology fee | |||
| E&O insurance: included, or bought separately | |||
| Compliance, file or administrative fee | |||
| MLS and association dues: who pays | |||
| Onboarding or exit fee | |||
| Lead fees or referral fees, and whether they are optional | |||
| When commission is paid after closing | |||
| Pending deals and non-solicitation terms if you leave | |||
| Your net on a $10,000 commission (use your own average) | |||
| Your net in a slow year and a good year |
Five steps to compare brokerages on commission
A method that works for any plan:
- Get the fee schedule and the agreement in writing. A web page or a phone call is not the agreement.
- Pick three volume cases: your lowest recent year, your usual year and a strong year, using your own average commission per side.
- Convert each plan to dollars in every case. Apply the split, then the cap, then every fee, in the order the agreement applies them.
- Check exit terms. Pending deals, how soon you are paid after you leave and any limit on contacting clients cost real money and rarely appear in a plan summary.
- Weigh what the fees buy. Supervision, training, systems and marketing support have value a split does not show.
For the questions that go beyond money, such as escrow handling, support and exit terms, use the full list in questions to ask a real estate brokerage before joining. For the wider decision, see how to choose a real estate brokerage in Florida. If you are newly licensed, the Florida post-licensing requirements guide covers a requirement your first broker will ask about.
Sources: Florida Statutes sections 475.01, 475.25 and 475.42 (2026 edition); National Association of Realtors, NAR Settlement FAQs. All checked October 21, 2026. The dollar figures in the comparison table are hypothetical.
Frequently Asked Questions
What is the average real estate commission split with a broker?
The sections of Florida law reviewed for this guide set no split, and none gives an average. The split is whatever your broker and you agree in writing, so the useful number is your net in dollars at your own volume under each plan. Use the worksheet in this guide.
What is a cap in real estate commission?
A cap is a limit on what the brokerage collects from you in a set period, usually a year. Once you have paid the cap amount, you keep a larger share of each commission, often subject to remaining fees. Ask when the cap year starts and what counts toward it.
What does 100% commission mean in real estate?
It usually means the brokerage takes no percentage of your commission. It does not mean the brokerage charges nothing: such plans typically replace the split with fees, such as a charge per transaction or a monthly fee. Add up every fee at your volume.
Do real estate agents split the commission with their broker?
Usually, in some form. Under section 475.42(1)(d), Florida Statutes, an associate collects commission money only in the employer’s name, so it reaches the broker first. How it is then divided, and whether the brokerage takes a percentage, a flat fee or both, is set by your agreement.
What is a desk fee in real estate?
“Desk fee” is industry shorthand, not a term defined in the chapter 475 sections reviewed here. It usually means a recurring charge billed to an agent whether or not a deal closes. Ask exactly what it covers, how often it is billed and whether it changes with production, and compare it with any transaction fees.
What is a flat fee real estate brokerage?
For agents, it usually means the brokerage charges a fixed dollar amount per transaction instead of a percentage split. The same words are also used for consumer services that list a home for a flat price, which is a different product. Ask whether the fee is per side or per deal and whether there is a yearly limit.
Related guides: 100% commission real estate brokerages in Florida explains the fees that replace a split, and no-cap and flat-fee brokerages for Florida agents shows how to find the break-even point between plans.
This guide is general information, not legal or tax advice. Your independent contractor agreement controls your pay, and tax treatment depends on your facts, so confirm anything specific with a Florida attorney and a CPA before you sign.
Comparing brokerage models?
See how LPE Realty works for agents on our agents page, and read how the brokerage is set up on our model page.
LPE REALTY LLC, a licensed Florida real estate brokerage