New Jersey Real Estate Practice Exam Free Practice Question
A property sells for $100,000 and the commission charged by Listing Company A is 5.5%. It was sold by Company X through the multiple listing service with an indicated cooperative fee of 2.5%. How much will Company X receive?
Correct Answer: A
Rationale: To determine Company X's earnings, first calculate the total commission on the property sale. At a 5.5% commission rate on a $100,000 sale, the total commission amounts to $5,500. Since Company X is entitled to a cooperative fee of 2.5%, we calculate 2.5% of $100,000, which equals $2,500.
Option B ($3,000) incorrectly assumes a higher cooperative fee. Option C ($5,500) represents the total commission, not Company X's share. Option D ($8,000) overestimates Company X's earnings by miscalculating the fee. Thus, the only accurate amount Company X receives is $2,500.
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