Final answer:
The fee collected by a real estate agent upon the sale of a property is all of the above: a percentage of the sale price, known as a commission fee, and stated in the agent-seller contract. Escrow is a related concept where a third party holds funds for disbursements like property taxes and insurance. Property taxes can have disparities due to legislation limiting reassessment values.
Step-by-step explanation:
The fee collected by a real estate agent upon the sale of a property is indeed: 1) a percentage of the sale price; 2) known as a commission fee; and 3) agreed upon and stated in the contract between the agent and seller. So the correct answer would be 4) All the above.
In relation to real estate transactions, the concept of Escrow is also pertinent. Escrow involves depositing money with a neutral third party to facilitate payment upon the completion of a real estate transaction. This third party can handle the disbursement of funds for home insurance and property taxes, making the process more convenient as part of your monthly mortgage payment.
However, property taxes, a significant part of property ownership and consideration during the sale of a property, present their own complexities. These taxes are essential for local governments but can be controversial due to the lump sum collection, visibility, and the resulting legislation that sometimes limits the ability to reassess the value of properties except upon sale, leading to disparities in tax burdens among similar properties.