A property sells for $280,000. The listing broker charges a 3% commission and offers 2.5% to the selling broker. The selling agent receives 65% of the selling broker's commission. What does the selling agent earn?
Correct Answer
B) $4,550
Step 1: Calculate the selling broker's commission — $280,000 × 2.5% = $7,000. Step 2: Calculate the selling agent's share — $7,000 × 65% = $4,550. The listing broker retains the remaining 3% ($8,400) of the total commission. Commission splits between brokers and their agents are negotiated independently and are not set by Mississippi law.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Monthly interest is the portion of the total annual interest that is paid or accrued each month.
Net operating income (NOI) is the annual income generated by an income-producing property after deducting operating expenses, but before deducting mortgage payments, income taxes, and depreciation.
Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
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