Broker Sarah lists a property for $400,000 with a 6% commission. Another broker brings a buyer, and the listing agreement states the commission will be split equally between listing and selling brokers. After closing, the seller asks Sarah to reduce her portion of the commission by $2,000 due to unexpected repairs. What should Sarah do?
Correct Answer
B) Refuse the reduction since the listing agreement is binding
The listing agreement is a binding contract, and the commission terms cannot be unilaterally changed by the seller after closing. Option A is incorrect because agreeing would violate the contract terms. Option C is incorrect because Sarah cannot make decisions affecting the cooperating broker's commission without consent. Option D is incorrect because this is a civil contract matter, not a regulatory violation.
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A cooperating broker in Jacksonville will be paid one-half of a 5.00% commission on a sale price of $415,000. How much is that brokerage side of the commission?
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A Florida broker receives a 7% commission on a $350,000 sale. The broker's agreement with their sales associate specifies a 60/40 split (60% to associate, 40% to broker). How much does the sales associate receive?