89. A property sells for $200,000 and the commission charged by Listing Company A is 6.5%. It was sold by Company X through the multiple listing service with an indicated cooperative fee of 2%. How much will the cooperating company receive?
Answer: B
The cooperating company will receive $4,000.
To determine the amount the cooperating company receives, we calculate the total commission on the property sale and then find the share designated for the cooperating company. The total commission at 6.5% on a $200,000 sale is $13,000, and with a cooperative fee of 2%, the cooperating company receives $4,000.
A) $1,300
This option is incorrect as it underestimates the cooperative fee. The calculation of 2% of the sale price is not $1,300; it is significantly higher based on the total commission structure provided.
B) $4,000
This option is correct because it accurately represents the cooperating fee calculated from the total commission. The total commission on the property sale is $13,000, and the cooperating company’s share is 2% of that, which equals $4,000.
C) $9,000
This option is incorrect as it miscalculates the cooperating fee. While it may seem plausible, it does not align with the specified cooperative fee percentage or the total commission calculated from the sale price.
D) $13,000
This option is incorrect because it reflects the total commission charged by Listing Company A rather than the amount the cooperating company receives. The cooperating company only receives a portion of this total commission, specifically 2%.
Conclusion
The correct answer, $4,000, is derived from the 2% cooperative fee calculated from the total commission of $13,000. Other options either miscalculate the percentage or confuse the total commission with the cooperating company's share, making them invalid in this context.