Final answer:
The commission is received by the listing agent's broker, who then distributes it based on the contracts with agents involved. The listing and buyer's agents do not necessarily receive equal shares, and the commission does not go directly to the seller.
The correct answer is C)
Step-by-step explanation:
In real estate transactions, when a property is sold, the sales transaction commission is typically outlined in the listing agreement. The correct answer to the question is C) The commission is received by the listing agent's broker.
Here is how it works: upon successful completion of a property sale, the commission earned is paid to the listing agent's broker. Then, the broker distributes shares of the commission to the listing agent and often the buyer's agent according to pre-arranged agreements.
The commission amount often depends on the percentage of the property's selling price and the splits agreed upon.
The notion that the commission is shared equally between the listing agent and the buyer's agent (option B) is not always true, as the split can vary. Additionally, it's important to note that the commission does not go directly to the listing agent (option A) nor is it paid to the seller of the property (option D).