Real Estate Math
A salesperson earns 40% of commissions collected by her broker. The broker earns a 5% commission on a $925,000 sale. How much does the salesperson receive?
A$18,500✓ Correct
B$46,250
C$27,750
D$11,100
Explanation
Total commission = $925,000 × 5% = $46,250. Salesperson's share = $46,250 × 40% = $18,500.
Related California Real Estate Math Questions
- An agent lists a property at $550,000 and it sells for 97% of list price. The total commission is 5%. How much does the listing broker receive if the commission is split 50/50?
- A property generates $4,200/month in rent. Using a GRM of 160, what is the estimated value?
- A property has a net operating income (NOI) of $36,000 per year. If the cap rate is 6%, what is the property's value?
- A house is purchased in California for $750,000. Under Prop 13, the base property tax rate is 1%. What is the maximum annual base property tax?
- Under California's Proposition 13, the assessed value of a property may increase by a maximum of how much per year (absent a change in ownership)?
- A property has a building-to-land value ratio of 75:25 and a total value of $900,000. What is the depreciable basis (building value) for tax purposes?
- A property is purchased for $550,000 with a 20% down payment. The loan origination fee is 1 point. How much is the origination fee?
- A property is valued at $560,000. Property taxes are 1.25% of value annually and are paid in two equal installments. What is each installment amount?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →