What Is Real Estate Commission?
Definition
Real Estate Commission: The fee a licensed real estate agent charges for arranging a sale or a rental, usually a percentage of the sale price or a share of the rent, often split between the parties.
Real estate commission is the fee a real estate agent charges for arranging a sale or a rental. It is usually a percentage of the sale price or a share of the rent, and the parties often split it. It appears when buying, selling or renting a property, and VAT is added on top of it.
Where it appears in the formulas
The real estate commission calculator uses commission = sale price × rate and total with VAT = commission × (1 + VAT rate). For a rental the base is the monthly rent instead of the sale price.
In Türkiye
Under the Regulation on Real Estate Trade art. 20, the commission cannot exceed 4% of the sale price or one month’s rent, both without VAT. Unless agreed otherwise, the parties pay equal halves: 2% each on a sale. The general VAT rate added to the commission is 20% (Presidential Decree 7346, since 10 July 2023).