26. A broker lists a property at $340,000. The seller agrees to a 5% commission with 60% going to the buyer's broker. Property successfully closes at $350,000. The buyer's broker will receive
Answer: B
The buyer's broker will receive $10,500.
To calculate the buyer's broker's commission, we first determine the total commission from the sale price. The property closes at $350,000, and with a 5% commission, the total commission is $17,500. Since the buyer's broker receives 60% of this total, they will earn $10,500.
A) 7,000
This option is incorrect because it does not represent the correct calculation of the buyer's broker's commission. The commission is based on the total sale price and the agreed percentage of the total commission.
B) 10,500
This option is correct as it accurately reflects the buyer's broker's share of the commission. The total commission from the sale is $17,500, and 60% of that amount equals $10,500.
C) 17,000
This option is incorrect because it miscalculates the buyer's broker's commission. It suggests a value that exceeds 60% of the total commission, which is not aligned with the commission structure provided.
D) 17,500
This option is incorrect as it represents the total commission from the sale rather than the buyer's broker's individual share. The buyer's broker only receives a portion of this total.
Conclusion
The correct answer is clearly $10,500, as it accurately reflects the buyer's broker's entitlement based on the commission structure of 60% of the total commission. All other options fail to align with the correct calculations based on the sale price and commission percentages provided.