After the commission is divided between firms on a co-brokered deal, there is one more division that decides what actually lands in your pocket: the split between you and your own brokerage. This is the house split, and it is set by your agreement with your firm, not by the deal. Understanding how it works, and the different models firms use, is the difference between knowing your real take-home and being surprised by it. This guide covers the common structures and what to ask before you sign with a firm.
It helps to see the order. On any deal, the total commission first divides between the brokerages involved, the co-broker split covered in its own guide. Then your firm's share divides between you and the house. So your take-home is your firm's portion of the commission, run through your house split. Two brokers on the same deal at different firms, or even at the same firm on different arrangements, can walk away with very different amounts.
The simplest model. You and the firm divide your share on a set ratio, the same on every deal. A broker on a fixed split knows exactly what percentage they keep before any deal closes. The ratio reflects what the firm provides, brand, leads, support, office, and what you bring.
Many firms use a tiered structure where your share rises as your production grows over a period. You might keep a lower percentage early in the year and a higher percentage after you cross production thresholds. Tiered splits reward volume, so a strong producer keeps more of their later deals.
In a cap model, you pay the firm its share up to a set annual ceiling, after which you keep most or all of your commission for the rest of the period. The cap resets each year. This model favors high producers, who hit the cap and then run at a much higher effective split, while the firm gets a predictable amount from each broker.
Some arrangements involve a desk fee or monthly cost in exchange for a higher split, shifting more fixed cost to the broker for more upside per deal. Hybrids combine elements, a modest split plus a fee, for instance.
Before you sign with a firm, get clear answers on the split, because it shapes your income more than almost anything else.
That last question matters for cash flow. Even after a payor pays, your money can sit briefly at the firm during reconciliation, which is one of the internal hold-ups covered in the guide on why your commission is delayed.
Your house split does not change when the payor pays, but it does change how much you net and adds one more step between the payor and your account. When you are mapping your real cash flow, account for all three layers: the co-broke, the house split, and the payment timing. If an earned commission is stuck behind occupancy and you need the cash, an advance works on your share the same way, which is covered in the guide on commission advances.
It varies by firm and model. Some use a fixed ratio, some a tiered split that rises with production, and some a cap model where you keep more after hitting an annual ceiling. The right question is which model your firm uses and what it provides in return.
The co-broker split divides the total commission between the two firms on a deal. The house split then divides your firm's share between you and the firm. They are two separate layers on the same commission.
Clarity first: the exact model, thresholds, any fees, what the firm provides, and how quickly you are paid after the firm collects. A higher split with no support is not always better than a lower split with strong lead flow.
This guide is general information for commercial real estate brokers and is not financial, tax, or legal advice. Split terms depend on your brokerage agreement. Confirm specifics before signing.
