Which of the following best describes a broker's commission?

A broker's commission is commonly defined as a percentage of the sale price that is paid by the seller to the broker upon the successful closing of a transaction. This financial arrangement incentivizes brokers to work diligently to secure the best possible price for the property, as their earnings are directly tied to the final sale amount.

In most real estate transactions, when a property is sold, the commission, often established in the listing agreement between the seller and the broker, reflects the agreed-upon percentage. This percentage can vary but is typically a significant portion of the final sale price, demonstrating the broker's role in facilitating the transaction and ensuring that all aspects run smoothly.

The other choices focus on different types of fees or arrangements that do not accurately describe the standard commission structure of real estate brokers. For example, a flat fee or fixed payment does not capture the commission's nature as a percentage of the transaction value, while property management fees pertain to ongoing management services rather than transaction-based commissions.