Broker Lisa lists a commercial property for $2,800,000 with a commission structure of 4% on the first $1,000,000 and 2.5% on the amount over $1,000,000. If the property sells for the full listing price and Lisa's sales associate receives 40% of the total commission earned, what amount does the sales associate receive?
Correct Answer
C) $34,000
Total commission is $40,000 (4% of $1,000,000) plus $45,000 (2.5% of $1,800,000) = $85,000. The sales associate receives 40% × $85,000 = $34,000.
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Broker Mike has an exclusive listing agreement with seller Karen. Sales Associate Amy, who works for a different brokerage, brings a buyer who makes an offer $10,000 below asking price. Karen counters at $5,000 below asking price, but the buyer rejects the counter and walks away. Two weeks later, the same buyer contacts Karen directly and purchases the property at Karen's counter-offer price. What are Mike's commission rights?