A property sells for $425,000 with a 5% commission. The commission is split 55% to the listing broker and 45% to the selling broker. The listing agent receives 70% of the listing broker's share. How much does the listing agent earn?
Correct Answer
B) $8,181.25
Step 1: Total commission = $425,000 × 5% = $21,250. Step 2: Listing broker share = $21,250 × 55% = $11,687.50. Step 3: Agent share = $11,687.50 × 70% = $8,181.25.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
Area calculation involves determining the square footage or acreage of a property using geometric formulas. Key conversions: 1 acre = 43,560 square feet, 1 mile = 5,280 feet, 1 section = 640 acres.
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