A dual or variable rate commission is a listing arrangement in which the total commission the seller pays differs depending on how the buyer is found. For example, the seller might pay a lower rate if the listing agent also brings the buyer, and a higher rate if a separate cooperating broker does.
This structure can save the seller money when the listing brokerage handles both sides, but it creates a potential conflict of interest and must be disclosed. Many MLS rules require that the existence of a variable rate commission be revealed to cooperating brokers so their buyers can make informed offers.
Because the arrangement can affect negotiations and how offers are treated, transparency is essential. Sellers considering it should understand the disclosure obligations and how it may influence agent behavior.