What does 'Distribution' refer to in a real estate commission structure?

In the context of a real estate commission structure, 'Distribution' refers specifically to the division of commissions between agents. This means that when a sale is completed and a commission is earned, that total amount may not go entirely to one agent but can be divided among various agents involved in the transaction.

For example, if there are multiple agents representing either the buyer or the seller, the commission earned from the sale may be split amongst them according to a pre-agreed distribution formula. This division reflects the collaborative nature of many real estate transactions, where various parties contribute to the sale process.

Understanding this concept is crucial for agents as it affects their potential earnings from each deal and the dynamics of commission sharing within a brokerage. This splitting of commissions can also motivate teamwork among agents and can influence the strategies they use in closing deals.

While other options refer to different aspects of commission structures, the focus on the sharing of commission specifically between agents highlights the relational dynamics within sales transactions in real estate.