← Glossary
Agents and brokerages
Independent contractor
Most agents aren't employees. They're self-employed, get a 1099, pay their own taxes and set their own hours.
Also called: 1099 agent, 1099, self-employed agent
Related terms
Real estate agent
A licensed person who helps people buy, sell or rent property. Agents work under a broker and are paid by commission, not salary.
Commission
What agents are paid when a deal closes, usually a percent of the sale price. It's always negotiable. It goes to the brokerage, which pays the agent their share.
Brokerage
The company agents work under. Commission checks go to the brokerage first, which pays the agent their share after its split and fees.