Question

A $140,000 property sells at a 5% commission with a 50-50 co-brokerage split and a 60% agent split with the employing broker. How much would the employing broker receive in this transaction (assuming an agent was involved)?

Answer 1

Answer:

$1,400

Explanation:

The sale value of property = $140,000

Commission rate = 5%

Basis = 50 - 50

Split percentage = 60%

So by considering the above information, the amount received is

= Sale value of the property × commission rate × basis × split remaining percentage

= $140,000 × 5% × 50% × 40%

= $1,400

The remaining percentage is

= 100 - 60%

= 40%