Question

Salesperson Sam, who works for Selling Broker Smith, sells a house listed by Listing Broker Louis. The house sells for $425,000. The co-brokerage split between Selling Broker Smith and Listing Broker Louis is 50-50. Salesperson Sam is on a 65% commission schedule with Selling Broker Smith. If the total commission rate is 7%, what is Salesperson Sam's commission?

Answer 1

Answer:

$9,669

Explanation:

The total commission for the sale was 7% of $425,000 = $29,750

This commission was divided evenly between Selling Broker Smith and Listing Broker Louis, which means each broker got $14,875.

Salesperson Sam is entitled to 65% of the commission received by Selling Broker Smith = 65% x $14,875 = $9,669