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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Related Topics & Key Terms
Key Terms:
Related Concepts
Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.
Marketable title is title that is free from reasonable doubt as to who the owner is and free from liens, encumbrances, or defects that would cause a reasonable buyer to hesitate before purchasing. It is also known as merchantable title.
Probate is the legal process by which a deceased person's will is validated by the court and their estate is administered, including the transfer of real property to the named beneficiaries or heirs.
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