Compliance Corner- Variable/Dual Commissions



Please note: this article is a snapshot of a message that was posted on the MLS system at some point within the last year.  Things evolve rapidly in our industry, and the information in this article may have changed since it was first published. Compliance Corner articles are not updated after they are published, even if the information contained within has changed.

For the most up-to-date information on this (or any other topic), please visit our SmartDesk.


Compliance Corner #22

July 15, 2020

Variable/Dual Rate Commissions


One of the more frequent errors we find when verifying information on Listing Agreements in Matrix is the failure to disclose a Variable/Dual Rate Compensation situation. 

Section 3-4 of the REALTOR® Code of Ethics defines a variable rate commission arrangement as follows: A listing in which one amount of commission is payable if the listing broker’s firm is the procuring cause of sale and a different amount of commission is payable if the sale results from the efforts of the seller or a cooperating broker.

Variable rate commissions are also known as dual rate commissions.  The terms are used interchangeably.

Here is an excellent article that explains variable rate commissions and gives a good real-life example of how it plays out.

When you are entering a listing in Matrix, you can use the Listing Contract Type field on the Contract tab in Add/Edit to show that the listing has a Variable Rate Commission:


Compliance Corner Archive 

Have you ever wanted to revisit a past Compliance Corner article that is no longer available in Matrix?  Now you can.  Simply click this link Compliance-Corner-Archive or enter compliance corner in the SMARTDESK search bar and you will be able to view all past articles.

As always, please feel free to contact the Compliance Team for additional information.

Compliance questions?  Send an email to or call us at 203-750-6000.

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