18. A broker lists a property at $340,000. The seller agrees to a 5% commission with 60% going to the buyer's broker. How much would the buyer's broker receive?
Answer: B
The buyer's broker would receive $10,500.
To calculate the amount the buyer's broker would receive, first determine the total commission from the sale price of $340,000, which is 5%. This results in a total commission of $17,000, and since the buyer's broker receives 60% of that amount, they would get $10,500.
A) $7,000
This option is incorrect because it does not reflect the correct calculation of the buyer's broker's share. If the total commission were divided inappropriately, one might mistakenly arrive at this figure, but it does not align with the commission structure provided.
B) $10,500
This option is correct as it accurately represents the calculation of the buyer's broker's commission. The total commission on the property is $17,000, and 60% of this amount is indeed $10,500.
C) $17,000
This option is incorrect because it represents the total commission from the property sale rather than the portion that goes specifically to the buyer's broker. The buyer's broker only receives a percentage of this total commission.
D) $17,500
This option is also incorrect as it incorrectly calculates the buyer's broker's commission. It does not follow from the stated total commission or the agreed percentage for the buyer's broker.
Conclusion
The correct answer, $10,500, is derived from the accurate application of the given commission structure. All other options fail to represent the correct division of the total commission as agreed upon by the seller and the brokers involved.