- A listing agent earns $8,400 from a transaction where the total commission was 6% split equally between listing and selling sides. What was the sale price of the property?
Answer: $280,000
The listing agent earned $8,400, which represents 3% of the sale price (half of the 6% total commission). Sale price = $8,400 ÷ 0.03 = $280,000. Choice A ($140,000) incorrectly uses the full 6% rate. Choice C ($320,000) uses an incorrect divisor calculation. Choice D ($560,000) doubles the correct answer unnecessarily.
- A $350,000 sale pays 6% commission; split 50/50 between brokers. If one broker refunds $500, net is?
Answer: $350,000 × 6% = $21,000; $21,000 ÷ 2 = $10,500; $10,500 - $500 = $10,000
This question tests the ability to adjust net commission after a refund in a split scenario. Understanding requires calculating the standard split and then deducting the refund from the appropriate share. In this scenario, each broker's share is $10,500, and deducting $500 from one yields $10,000 net. For example, the refund affects only one broker's net. Choice A is correct because it deducts the refund after splitting, resulting in $10,000. Choice B is incorrect as it deducts before splitting, altering both shares. Teaching strategies include scenarios with adjustments like refunds and emphasizing order of operations.
- A small business sells for $500,000 with a flat $30,000 commission; split 50/50 between brokers. Each broker receives?
Answer: Flat commission = $30,000; $30,000 ÷ 2 = $15,000
This question tests the ability to split flat commissions in business sales. Understanding flat fees involves direct division without percentage calculations. In this scenario, $30,000 flat split 50/50 gives $15,000 each. For example, flat means fixed amount. Choice B is correct because it divides $30,000 by 2 accurately. Choice A is incorrect as it unnecessarily computes a percentage. Teaching strategies include distinguishing flat from percentage and practicing divisions.
- A $350,000 sale carries 6% commission; brokers split 50/50, agent gets 70% of their broker. Agent earns?
Answer: $350,000 × 6% = $21,000; $21,000 ÷ 2 = $10,500; $10,500 × 70% = $7,350
This question tests the ability to calculate agent compensation after brokerage splits in real estate transactions. Understanding these calculations involves first determining the total commission, then the broker's share, and finally the agent's portion. In this scenario, the 6% on $350,000 yields $21,000 total, split to $10,500 per broker, with the agent getting 70% of their broker's share. For example, 70% of $10,500 is $7,350. Choice B is correct because it properly sequences the calculations to arrive at $7,350 for the agent. Choice A is incorrect as it applies 70% to the total commission instead of the broker's share. Teaching strategies include step-by-step breakdowns of multi-level splits and verifying each calculation layer.
- A property lists for $275,000 and sells for $260,000. The commission rate is 6% of the actual sale price. How much total commission is paid?
Answer: $15,600
Commission is calculated on the actual sale price of $260,000: $260,000 × 0.06 = $15,600. Choice B ($16,500) incorrectly uses the listing price of $275,000. Choice C ($17,250) uses an incorrect commission rate. Choice D ($19,650) uses both wrong price and wrong rate.
- A home sells for $395,000. The total commission is 6%, with 2.5% going to the listing side and 3.5% to the selling side. What is the difference between the two commission amounts?
Answer: $3,950
Listing commission = $395,000 × 0.025 = $9,875. Selling commission = $395,000 × 0.035 = $13,825. Difference = $13,825 - $9,875 = $3,950. Choice A ($2,370) uses an incorrect commission rate calculation. Choice C ($4,740) uses wrong percentage calculations. Choice D ($5,925) uses an incorrect difference calculation method.
- A $500,000 business sale pays flat $30,000 commission; broker keeps 25% and pays agent 75%. Agent receives?
Answer: $30,000 × 75% = $22,500
This question tests the ability to determine agent's earnings from a flat commission split. Understanding involves the broker keeping a portion and paying the agent the rest. In this scenario, agent gets 75% of $30,000, equaling $22,500. For example, percentages add to 100%. Choice B is correct because it applies 75% to $30,000 accurately. Choice A is incorrect as it calculates broker's share. Teaching strategies include clarifying keeper vs. payer and practicing percentages.
- A $350,000 residential closing pays 6% commission; brokers split 50/50. Selling broker's commission is?
Answer: $350,000 × 6% = $21,000; $21,000 ÷ 2 = $10,500
This question tests the ability to determine a selling broker's commission in a 50/50 split. Understanding these calculations requires applying the full rate first and then splitting the total. In this scenario, 6% of $350,000 is $21,000, split to $10,500 for the selling broker. For example, the split is equal, so each gets half. Choice B is correct because it computes the total commission and divides by 2 correctly. Choice A is incorrect as it uses a 5% rate without justification. Teaching strategies include practicing with different rates and splits, and double-checking arithmetic for errors.
- A $350,000 home sells at 6%; brokers split evenly, and listing agent receives 60% of listing broker. Agent earns?
Answer: $350,000 × 6% = $21,000; $21,000 ÷ 2 = $10,500; $10,500 × 60% = $6,300
This question tests the ability to calculate an agent's earnings from their broker's share. Understanding involves computing total commission, broker split, and then agent's percentage. In this scenario, $21,000 total split to $10,500 for listing broker, with agent getting 60% or $6,300. For example, the agent's share is based on the broker's portion. Choice A is correct because it sequences the calculations properly to $6,300. Choice B is incorrect as it applies 60% to the total commission. Teaching strategies include using flowcharts for multi-step commissions and verifying intermediate totals.
- A $500,000 business sale pays flat $30,000 commission; listing broker gets 40% and selling broker 60%. Selling broker receives?
Answer: $30,000 × 60% = $18,000
This question tests the ability to allocate uneven broker shares in flat commissions. Understanding requires applying percentages to the total flat fee. In this scenario, selling broker gets 60% of $30,000, equaling $18,000. For example, uneven reflects negotiation. Choice B is correct because it computes 60% of $30,000. Choice A is incorrect as it uses 40%. Teaching strategies include percentage allocations and summing checks.
- A $10,000 monthly lease pays 4% annual commission; listing broker keeps 70% and pays agent 30%. Agent receives?
Answer: Annual = $120,000; commission = $4,800; agent = $4,800 × 30% = $1,440
This question tests the ability to calculate agent's earnings when broker keeps a portion. Understanding requires applying agent's percentage to total commission. In this scenario, $4,800 total with agent at 30% is $1,440. For example, broker keeps 70%, agent gets 30%. Choice A is correct because it computes 30% of $4,800 correctly. Choice B is incorrect as it calculates broker's share instead. Teaching strategies include role distinctions and percentage checks.
- An agent earned $22,400 in commission, which represents 80% of what their brokerage received. What commission rate was charged if the property sold for $560,000?
Answer: 5.0%
Brokerage commission = $22,400 ÷ 0.80 = $28,000. Commission rate = $28,000 ÷ $560,000 = 0.05 or 5.0%. Choice A (4.5%) would result in a $25,200 brokerage commission. Choice C (5.5%) would result in a $30,800 brokerage commission. Choice D (6.0%) would result in a $33,600 brokerage commission.
- An agent negotiated a commission split where they keep 75% and the broker keeps 25%. On a transaction where the brokerage earned $14,400, how much does the broker receive?
Answer: $3,600
The broker receives 25% of the $14,400 commission earned by the brokerage: $14,400 × 0.25 = $3,600. Choice B ($4,800) uses an incorrect percentage calculation. Choice C ($7,200) uses 50% instead of 25%. Choice D ($10,800) is the agent's 75% share, not the broker's share.
- An agent receives a 60% split of the commission earned by their brokerage. If the brokerage earned $15,000 on a transaction, how much does the agent receive?
Answer: $9,000
The agent receives 60% of the brokerage's $15,000 commission: $15,000 × 0.60 = $9,000. Choice A ($6,000) incorrectly uses 40% (100% - 60%). Choice C ($12,000) uses 80% instead of 60%. Choice D ($25,000) incorrectly adds the split percentage to the commission.
- A $10,000 monthly lease pays 4% annual commission; total commission is split 50/50, then agent gets 50%. Agent earns?
Answer: Commission = $120,000 × 4% = $4,800; broker = $2,400; agent = $2,400 × 50% = $1,200
This question tests the ability to handle multi-level splits in lease commissions. Understanding involves splitting total between brokers, then agent's share. In this scenario, $4,800 split to $2,400 per broker, agent 50% of $2,400 is $1,200. For example, levels are sequential. Choice A is correct because it applies splits step-by-step. Choice B is incorrect as it skips the broker split. Teaching strategies include sequential calculations and error checking.
- A home sells for $425,000 with a 5.5% total commission split equally between the listing and selling brokerages. What commission does each brokerage receive?
Answer: $11,687.50
Total commission is $425,000 × 0.055 = $23,375. Split equally between two brokerages: $23,375 ÷ 2 = $11,687.50 each. Choice B ($15,937.50) uses an incorrect commission rate of approximately 7.5%. Choice C ($19,250.00) uses an incorrect split calculation. Choice D ($23,375.00) is the total commission before splitting.
- A $1,200,000 condo pays tiered commission; 5% first $500,000 and 3% remainder. First-tier commission equals?
Answer: $500,000 × 5% = $25,000
This question tests the ability to compute the first-tier portion of a tiered commission. Understanding involves applying the rate only to the specified initial amount. In this scenario, 5% on first $500,000 equals $25,000. For example, tiers are independent. Choice A is correct because it accurately calculates 5% of $500,000. Choice B is incorrect as it uses the wrong rate of 3%. Teaching strategies include isolating each tier and adding for totals.
- A property sells for $180,000 with a 7% commission rate. If the listing brokerage receives 4% and the selling brokerage receives 3%, how much does the selling brokerage earn?
Answer: $5,400
The selling brokerage receives 3% of the $180,000 sale price: $180,000 × 0.03 = $5,400. Choice B ($7,200) incorrectly uses the listing brokerage's 4% rate. Choice C ($12,600) uses the total 7% commission rate. Choice D ($15,400) uses an incorrect calculation method.
- A $1,200,000 condo pays tiered commission; selling broker gets 45% of total. Selling broker's commission is?
Answer: Total = $46,000; $46,000 × 45% = $20,700
This question tests the ability to compute a selling broker's uneven share in tiered commissions. Understanding involves total commission calculation followed by percentage application. In this scenario, $46,000 total with 45% for selling broker is $20,700. For example, shares add to 100%. Choice B is correct because it applies 45% to the correct $46,000 total. Choice A is incorrect as it uses 55% instead. Teaching strategies include verifying share percentages sum to 100% and cross-checking calculations.
- A property sells for $650,000 with a 5.5% total commission. The commission is divided as follows: listing brokerage 2.75%, selling brokerage 2.75%. If the selling agent receives 65% of their brokerage's commission, how much does the selling agent earn?
Answer: $11,618.75
Selling brokerage commission = $650,000 × 0.0275 = $17,875. Selling agent's share = $17,875 × 0.65 = $11,618.75. Choice B ($17,875.00) is the brokerage's full commission before the agent split. Choice C ($23,212.50) uses an incorrect agent split percentage. Choice D ($35,750.00) is the total commission for both sides.
