Question

REALTOR® Shawna is cooperating with a listing broker. What does Shawna need to know concerning her commission?

a) She is entitled to the full commission regardless of circumstances
b) Her commission depends on the buyer's agent
c) The commission is fixed by the seller and cannot be negotiated
d) Her commission is contingent upon the successful sale of the property

Answer 1

REALTOR® Shawna's commission depends on the successful sale of the property and is not guaranteed by mere involvement. It is typically pre-negotiated, not fixed by the seller, and paid out after closing.

Step-by-step explanation:

REALTOR® Shawna, who is cooperating with a listing broker, needs to understand that her commission is contingent upon the successful sale of the property. This means that her financial remuneration for facilitating a real estate transaction is earned only if the property in question successfully goes to closing. Contrary to some misconceptions, a Realtor®'s commission is not guaranteed merely by their involvement, nor is it fixed unilaterally by the seller or dependent on another agent. It is a common practice that the commission is agreed upon in the listing agreement and is then split between the listing and cooperating brokers based on negotiations or established office policies after the sale concludes.

Answer: d) Her commission is contingent upon the successful sale of the property