Scan QR code or get instant email to install app
Question:
An experienced salesperson arranged an employment contract calling for a 70/30 split of any commissions received. The salesperson completed a sale representing both the buyer and seller. The sales price was $650,000. The escrow instructions called for a 5% fee paid to the broker. How much did the salesperson receive from their broker?
A
$22,750.
explanation
In the second commission problem, the total fee paid to the broker is 5% of the sales price.
$650,000 x 0.05 = $32,500
In this scenario, the more experienced salesperson earned 70% of the $32,500 fee and represented both the buyer and the seller.
$32,500 x 0.7 = $22,750
Take more free practice tests for otherReal Estate topics with our practice real estate exam now!
Related Information
Comments