Free Pennsylvania Real Estate Practice Exam Practice Question
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?
Correct Answer: B
Rationale: To calculate the buyer's broker's commission, first determine the total commission from the sale price. A 5% commission on $340,000 amounts to $17,000. Since 60% of this total commission goes to the buyer's broker, the calculation is as follows:
0.60 x $17,000 = $10,200.
This value matches option B, confirming it as the correct choice.
Option A ($7,000) represents a miscalculation, possibly confusing the commission percentage. Option C ($17,000) reflects the total commission, not the buyer's broker's share. Option D ($17,500) incorrectly adds to the total commission instead of calculating the correct percentage.
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