Agency
In Pennsylvania, what is a 'co-broke' (cooperating broker) arrangement and how is compensation structured?
ATwo brokers splitting a listing agreement equally
BAn arrangement where a listing broker offers a portion of their commission to a cooperating (buyer's) broker who produces the buyer, typically through MLS commission-sharing offers✓ Correct
CA franchise arrangement where independent brokerages cooperate under a national brand
DPennsylvania's required commission split between listing and buyer's broker of 50/50
Explanation
A co-broke is a cooperative arrangement where the listing broker offers a portion of their commission to a buyer's broker who produces a buyer. In Pennsylvania MLS systems, the listing broker's offered compensation to cooperating brokers is displayed in the MLS.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Math Concepts
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