Broker Martinez has a listing agreement with a 5.5% commission. The property sells for $350,000. Martinez's firm keeps 60% and pays the cooperating broker 40%. The listing agent receives 50% of the firm's share. How much does the listing agent earn?
Correct Answer
C) $5,775.00
Total commission = $350,000 × 5.5% = $19,250. Martinez's firm share = $19,250 × 60% = $11,550. Listing agent's share = $11,550 × 50% = $5,775.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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