Florida Real Estate Broker ExaminationReal Estate CalculationsMedium
A property was sold for $320,000. The listing broker earned a 6% commission, which was split 50/50 with the selling broker. The selling broker then paid their agent 60% of their share. How much did the selling agent receive?
- A$5,760
- B$11,520
- C$19,200
- D$9,600
Show answer & explanationAnswer & explanation
Correct answer: A. $5,760
First, calculate the total commission: $320,000 * 0.06 = $19,200. The selling broker's share is 50% of this, so $19,200 * 0.50 = $9,600. The selling agent receives 60% of the selling broker's share: $9,600 * 0.60 = $5,760.
Why the other options are wrong
- B. This would be if the selling agent received 60% of the total commission, not the selling broker's share.
- C. This is the total commission earned by both brokers.
- D. This is the selling broker's total share before paying the agent.
Commission Split
Commission split refers to the way the total commission earned on a real estate transaction is divided among the various parties involved, such as listing broker, selling broker, and their agents.
- Total commission is based on the sale price.
- Broker-to-broker split is common (e.g., 50/50).
- Broker-to-agent split is based on their employment agreement.
Memory trick: Sale, Split, Share, Success!