44. 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.
The buyer's broker will earn a commission based on the sale price of the property, which is $350,000. Given that the total commission is 5%, the buyer's broker receives 60% of that commission.
A) $7,000
This option is incorrect because it does not account for the total sale price of $350,000. A 5% commission on $350,000 equals $17,500, and 60% of that total is much higher than $7,000.
B) $10,500
This option is correct. The total commission for the sale at $350,000 is calculated as 5% of $350,000, resulting in $17,500. The buyer's broker receives 60% of this amount, which is $10,500 (0.6 * $17,500 = $10,500).
C) $17,000
This option is incorrect because it miscalculates the share of the commission the buyer's broker would receive. The correct calculation shows that the buyer's broker receives $10,500, not $17,000, as they only earn 60% of the total commission.
D) $17,500
This option is incorrect as it represents the total commission amount from the sale, not the portion that goes to the buyer's broker. The buyer's broker only receives 60% of that total, which is $10,500.
Conclusion
The correct answer is $10,500 because it accurately reflects the buyer's broker's commission based on the sale price and the agreed-upon commission structure. All other options either miscalculate the total commission or fail to apply the correct percentage that the buyer's broker receives. Thus, $10,500 is the only correct figure derived from the given details.