How is "commission" defined in real estate?

In real estate, "commission" is defined as a fee that is paid to a real estate agent or broker for the services they provide during the sale or lease of a property. This fee is typically calculated as a percentage of the property's sale price, reflecting the agent's role in facilitating the transaction. The commission incentivizes agents to work diligently to attract potential buyers or renters, negotiate deals, and ensure the transaction proceeds smoothly.

The other options do not accurately describe what commission represents in the context of real estate. A tax applied to the sale of a property is a separate matter related to government revenue and does not pertain to the services provided by real estate professionals. Similarly, a government fee for property registration involves compliance and documentation processes and is not related to the compensation of agents. Lastly, a penalty assessed for breaches of contract pertains to legal consequences of not adhering to contractual obligations, which is distinct from the concept of commission related to service fees in real estate transactions.