A California seller is paying a 6% total commission on a home that sold for $500,000. The listing agreement specifies a 60/40 split between the listing brokerage and the buyer's brokerage. How much commission does the buyer's brokerage receive?
Correct Answer
B) $12,000
Step 1: Calculate total commission: $500,000 × 6% = $30,000. Step 2: Calculate buyer's brokerage share: $30,000 × 40% = $12,000. The 60/40 split means the listing brokerage receives 60% ($18,000) and the buyer's brokerage receives 40% ($12,000).
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