Real Estate Math
If a listing agent and buyer's agent split a 6% commission equally on a $350,000 sale in New Mexico, how much does each brokerage receive?
A$7,000
B$10,500✓ Correct
C$14,000
D$21,000
Explanation
Total commission = $350,000 × 0.06 = $21,000.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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