Broker Davis lists a property for $400,000 with a 6% commission to be split equally between the listing broker and the selling broker. If the property sells at the listing price, how much commission does each broker receive?
Correct Answer
C) $12,000
Total commission = $400,000 × 6% = $24,000. Split equally between two brokers: $24,000 ÷ 2 = $12,000 each.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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