Rationale
$10,725 remained with the listing brokerage.
The total sales commission is calculated as 6% of the sale price, which amounts to $19,500. The listing broker pays 55% of this commission to the buyer's broker, leaving the listing brokerage with the remaining 45%, which equals $10,725.
A) $10,725
This choice correctly represents the amount retained by the listing brokerage after disbursing 55% of the total sales commission to the buyer's broker. With the total commission being $19,500, the listing brokerage keeps 45% of that, resulting in $10,725.
B) $8,775
This amount does not reflect the correct retention by the listing brokerage. It could arise from miscalculating the commission percentages or mistakenly considering a different fee structure, but it does not accurately reflect the 45% of the commission that remains.
C) $9,750
This option incorrectly assumes a different percentage of the total commission retained by the listing brokerage. The correct calculation shows that the listing brokerage retains 45% of the total commission, not 50% as might be implied by this figure.
D) $10,725
This choice is a repeat of the correct answer, which might confuse the interpretation but still confirms the listing brokerage's retention amount accurately.
E) $19,500
This figure represents the total sales commission, not the amount remaining with the listing brokerage after paying the buyer's broker. It is important to distinguish between total commissions and retained amounts.
Conclusion
In real estate transactions, understanding how sales commissions are distributed is essential. The listing brokerage retains $10,725 after paying the buyer's broker 55% of the total commission. The total commission amount of $19,500, along with the percentages involved, clearly illustrates how the fees are allocated between the parties involved in the sale.
