Commission

The fee charged for services performed, usually based on a percentage of the price of the items sold (such as the fee a real estate agent earns on the sale of a house).

An amount, usually a percentage of the property sales price that is collected by a real estate professional as a fee for negotiating the transaction. Traditionally the home seller pays the commission. The amount of commission is determined by the real estate professional and the seller and can be as much as 6% of the sales price.

The Landmarks Preservation Commission (LPC) as established by Section 3020 of the New York City Charter.

A portion of the policy premium that is paid to an insurance producer (agent) by the insurance company as compensation for the producer’s work.

Securities brokers and other sales agents typically charge a commission, or sales charge, on each transaction.

With traditional, full-service brokers, the charge is usually a percentage of the total cost of the trade, though some brokers may offer favorable rates to frequent traders.

Online brokerage firms, on the other hand, usually charge a flat fee for each transaction, regardless of the value of the trade. The flat fee may have certain limits, however, such as the number of shares being traded at one time.

The commissions on some transactions, such as stock trades, are reported on your confirmation slip. But commissions on other transactions are not reported separately.

In the case of cash value life insurance, for example, the commission may be as large as a year's premium.

Compensation received by an employee for services performed. Commissions are paid based on a percentage of sales made or a fixed amount per sale.