How are total commissions generally divided between brokerages and salespersons?

The correct choice highlights that total commissions are typically divided between brokerages and salespersons through a system that can be described as distributed or allocated, ultimately resulting in a split of the total commission earned.

In most real estate transactions, the commission structure is negotiated upfront and predetermined in the listing agreement. Once the commission is earned upon the sale of a property, it is then distributed between the brokerage that holds the listing and the salesperson who facilitated the sale. This division is crucial, as it outlines how earnings are shared among the parties involved in the real estate transaction.

The terms “distributed,” “allocated,” and “split” accurately reflect this common practice within the industry, emphasizing the concept of sharing the commission based on previously established agreements, thereby ensuring clarity and mutual benefit for all parties.

The other choices do not accurately illustrate this established practice. "Invested, Managed, Shared," for instance, implies a different context that is not relevant to how commissions are divided. Similarly, "Calculated, Specified, Paid" suggests a process-focused approach that does not capture the actual division of commissions. Lastly, "Assigned, Dedicated, Finalized" lacks the clarity of how earnings are apportioned, leading to potential misunderstandings about commission distribution in real estate transactions.