Question

A property was sold for $750,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 40/60 with his broker, how much commission is paid to the real estate agent...?

Answer 1

The real estate agent's commission is $9,000

Step-by-step explanation:

Selling price= $750,000

6% commission = $45,000

Listing broker's share from the commission (50/50) = $22,500

Buyers broker's share from the commission (50/50) =$22, 500.

Real Estate agent's share from the buyers broker's commission is 40% of $22,500.

So we need to find the real agent's share.

(40/100) * 22,500

2/5 * 22,500

= $9,000.

Therefore,the real estate agent's share is $9,000.