Sales Commission System

EXAMPLE SCENARIO: Suppose a property sale in Cyprus with a 15% commission rate and there is a house priced at £100,000. The total commission is £15,000. How do we distribute the commission in Vestate?

OPERATING PRINCIPLE:

Direct Agent Sale

In a straightforward sale by an agent, the commission is divided among three parties:

• A fixed 10% percentage is allocated to VESTATE. Therefore Vestate gets £1500.

• The agent who directly facilitates the sale receives 50% of the commission, meaning £7500.

• The remaining portion, %40 of the commission, is allocated to the broker overseeing the transaction. The broker gets £6000.

Mediator Involved in Purchase

When a mediator is involved in bringing a buyer to an agent:

Suppose that John, Bart’s friend, says that he needs a property. Bart finds the property at Vestate and Dennis is selling that property. He says to Dennis that he is willing to bring the buyer, John, if Dennis is up to sharing the commission. If Dennis agrees:

• VESTATE retains its fixed percentage which is 10% of the commission, £1500.

• The 50% of the commission is then split equally between the agent (Dennis) handling the sale and the mediator (Bart) who brought in the buyer. Both gets £3750, which equals to 25% of the commission.

• The brokers receive the remaining portion which is 40%. Therefore the brokers get £6000.

Mediator Involved in Sale

In cases where a mediator is involved in selling a property: Suppose that Bart has a property to sell and wants to do it through Vestate.

• If Bart is a regular customer (non-agent), the first scenario applies, where the commission is split between VESTATE, the agent, and the broker.

• If Bart (the mediator) is also a real estate agent and owns the property, the second scenario applies. The commission is then divided among VESTATE, the property-owning agent, the mediator (who might be the same as the agent), and the broker.

In each scenario, Vestate's commission structure is designed to reward with a traditional commission system the direct efforts of agents and mediators while ensuring a fair share for the overseeing broker. This system aims to incentivize active participation in the platform, promote collaborative transactions, and maintain a high standard of integrity in all dealings.

The percentages in the scenarios are exemplified to better understand the commission distribution logic and are not definitive.

This percentages change incrementally as their revenue thresholds which will be designated by Vestate and may vary due to conditions of the season and the market.