Brokerage Allowance

Commission paid by the seller in a transaction to the broker who arranged the sale, based upon some percentage of the selling price. For example, a list broker is paid a brokerage allowance for list rentals he or she arranges. A brokerage allowance usually refers only to transactions in which the broker does not take possession of the goods sold-for example, a list rental.

Commission paid by the seller in a transaction to the broker who arranged the sale, based upon some percentage of the selling price. A brokerage allowance usually refers only to transactions in which the broker does not take possession of the goods sold.