How is a co-broker typically compensated in a real estate transaction?

A co-broker is typically compensated through a split of the commission from a real estate transaction, which constitutes the correct answer. In most transactions, the total commission earned from the sale of a property is divided between the listing broker and the co-broker (buyer’s broker). This commission split is a common practice in the industry, as it incentivizes both brokers to work effectively toward closing the deal, with each receiving a fair share of the negotiated commission based on their contribution to the transaction.

This method also reflects the cooperative nature of real estate dealings, where different brokers can collaborate to close a sale, ensuring that both parties are motivated to achieve their clients' goals. Other compensation methods like a flat fee, hourly wage, or conditional compensation based on sale performance are not standard in this context; they don't capture the intrinsic incentivization structure that commission splits provide in real estate transactions.