Real Estate Math

A New Mexico listing agreement pays the broker 5% if the agent produces the buyer and 3% if another broker produces the buyer. The property sells for $420,000 through a cooperating broker. What does the listing brokerage earn?

A$8,400
B$12,600✓ Correct
C$21,000
D$6,300

Explanation

If another broker produces the buyer, the listing broker earns 3% (the unilateral offer of compensation). 3% × $420,000 = $12,600.

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