Real Estate Math
A Pennsylvania listing expires after 90 days and the property did not sell. The agent had invested $500 in marketing costs. The agent's compensation is:
A$500 reimbursement from the seller
BNothing — in a commission-only agreement, no commission is earned and expenses are typically the agent's cost✓ Correct
C50% of planned commission
DRecovery of expenses under RELRA
Explanation
In a typical Pennsylvania listing agreement, the broker earns a commission only upon successful closing. Marketing expenses during an unsuccessful listing are generally absorbed by the broker/agent as a business cost unless the listing agreement specifically provides for expense reimbursement.
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