Agency commission refers to a fee or percentage of a transaction that is paid to a real estate agent or broker for their services in facilitating the sale or rental of a property. This commission is typically negotiated between the agent and the client and is based on the final sale or rental price of the property. The purpose of an agency commission is to compensate the agent for their expertise, time, and resources in marketing and negotiating the sale or rental of a property on behalf of their client. It is a common practice in the real estate industry and is an important source of income for agents.