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A typical multiple listing commission split is 60% to the selling broker, 30% to the listing broker, and 10% for operating expenses.

A. True
B. False

1 Answer

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Final answer:

The statement is false because a typical real estate commission split does not designate a portion for operating expenses but is generally divided between the listing and selling brokers with each covering their own operating costs.

Step-by-step explanation:

The statement given in the question is false. In a typical real estate transaction, commission splits do not usually have a designated portion for operating expenses. Generally, the total commission from the sale of a property is split between the listing broker and the selling broker. The exact percentage can vary greatly, but a common split is 50/50.

However, it's possible for the split to be 60/40 or some other arrangement, depending on the agreement between the brokers. Additionally, each broker pays for their own operating expenses out of the commission they receive. It's important for anyone involved in a real estate transaction to fully understand the terms and conditions of the broker's commission split before entering into an agreement.

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