Question

A property was sold for $200,000. 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 65/35 split with his broker, how much commission is paid to the real estate agent?

Answer 1

$3,900

Step-by-step explanation:

The computation of the commission paid to the real estate agent is shown below:

= Sale value of the property × total commission percentage × split percentage × split ratio

= $200,000 × 6% × 50% × 65%

= $3,900

We simply multiplied the sale value of the property with the total commission percentage with the split percentage and the split ratio so that the commission should be paid