Are real estate commissions set by a rule or a standard rate?

Real estate commissions are negotiated between each agent and their client, not set by any rule, law, or standard industry rate, and no board or association is allowed to fix that number. A listing agreement spells out what a seller pays their agent, and since a 2024 nationwide settlement changed industry practice, a buyer's agent's pay now has to be agreed in writing with the buyer before showings rather than assumed from the MLS. Brian Beatty discusses this openly with every client before any agreement is signed.