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?
Correct Answer
D) $14,700
Correct: D - $14,700. Total commission = $350,000 × 0.07 = $24,500. Sales associate receives 60% = $24,500 × 0.60 = $14,700. Why not A: This option is incorrect because "$24,500" does not match the rule tested by the question. The correct answer is "$14,700". Total commission = $350,000 × 0.07 = $24,500. Sales associate receives 60% = $24,500 × 0.60 = $14,700. Why not B: This option is incorrect because "$9,800" does not match the rule tested by the question. The correct answer is "$14,700". Total commission = $350,000 × 0.07 = $24,500. Sales associate receives 60% = $24,500 × 0.60 = $14,700. Why not C: This option is incorrect because "$10,290" does not match the rule tested by the question. The correct answer is "$14,700". Total commission = $350,000 × 0.07 = $24,500. Sales associate receives 60% = $24,500 × 0.60 = $14,700.
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Previous Question
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?
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Under Florida law, all of the following are acceptable commission arrangements EXCEPT: