How is compensation managed in a co-broke arrangement?

In a co-broke arrangement, compensation is managed based on prior agreements established between the cooperating agents or their brokerages. This means that before any property transaction occurs, the agents involved typically negotiate and agree on how the commission from the sale will be divided. This prior agreement provides clarity and predictability for both parties, ensuring that all agents involved are aware of their respective shares before the closing of a deal.

Compensation being determined by the seller's preferences or solely by the buyer's agent does not align with standard practices in co-breaking. While the seller's preferences may influence the total commission percentage, the actual distribution between agents is generally a product of mutual agreement rather than unilateral decisions. Similarly, splitting compensation equally isn't standard practice unless mutually agreed upon, as it can vary based on factors like the level of service provided or the specific terms outlined in the listing agreement.