New Jersey Real Estate License Exam Practice Question
A buyer made a 10% earnest money deposit on the sale of a $77,000 house. The listing agreement stated that the licensee's commission was to be 6% of the sale price. As authorized by the buyer and the seller, the licensee paid, for the seller, the title fee of $190 and the termite inspection fee of $125. At the closing, how much money will the seller receive from the balance of the earnest money deposit?
Correct Answer: A
Rationale: To determine the amount the seller receives from the balance of the earnest money deposit, first calculate the earnest money: 10% of $77,000 equals $7,700. Next, calculate the licensee’s commission: 6% of $77,000 is $4,620. The seller's total deductions include the commission ($4,620) plus the title fee ($190) and termite inspection fee ($125), totaling $4,935. Subtracting these deductions from the earnest money ($7,700 - $4,935) leaves the seller with $2,765.
Options B ($3,080), C ($4,620), and D ($4,936) are incorrect as they do not account for the total deductions accurately, leading to inflated amounts for the seller.
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