National Real Estate Exam (PSI)Real Estate CalculationsMedium
A property sells for $340,000 with a total commission rate of 5.5%, split 50/50 between the two brokerages. The listing agent receives 70% of the listing brokerage's share. How much commission does the listing agent receive?
- A$9,350
- B$6,545
- C$5,610
- D$18,700
Show answer & explanationAnswer & explanation
Correct answer: B. $6,545
Total commission = $340,000 × 5.5% = $18,700. Listing side's half = $9,350. Agent's 70% share = $9,350 × 0.70 = $6,545.
Why the other options are wrong
- A. This is the listing brokerage's total share before the agent split.
- C. Incorrectly applies 70% to a smaller wrong base.
- D. This is the total commission before any splits.
Multi-Level Commission Split
Real estate commissions often pass through two levels of splitting: between brokerages, then between broker and agent.
- Always calculate total commission first
- Apply brokerage split before agent split
- Keep track of which percentage applies to which base
Memory trick: Split the pie twice before anyone eats