A buyer is purchasing a 3-acre property and is paying $12,000 per acre. The cooperating fee is 3% of the sale price. The buyer's agent will receive 55% of the cooperating fee from a broker. How much commission did the buyer's agent receive?

Rationale

$1,386

To calculate the buyer's agent commission, first determine the total sale price of the property, which is $36,000 (3 acres x $12,000 per acre). The cooperating fee, being 3% of the sale price, amounts to $1,080. Since the buyer's agent receives 55% of this fee, the final commission is $594, resulting in a total of $1,386 after including the broker's share.

A ($231) YOUR ANSWER

This amount represents a small fraction of the cooperating fee but does not accurately reflect the calculations for the buyer's agent's commission. To arrive at this figure, one would need to miscalculate either the total sale price or the percentage of the cooperating fee received, which is inconsistent with the given data.

B ($693) YOUR ANSWER

While this value could be considered as half of the cooperating fee, it does not account for the 55% share that the buyer's agent receives. This misunderstanding of percentage allocation leads to an incorrect conclusion about the agent's commission.

C ($1,260) CORRECT

This figure seems to arise from an incorrect application of the commission percentages. It does not represent the correct calculation of either the total sale price or the cooperating fee and fails to reflect the accurate division of the fee between the broker and the buyer's agent.

D ($1,386) YOUR ANSWER

The proper calculation of the buyer's agent commission yields this amount. The total sale price of $36,000 leads to a cooperating fee of $1,080, and taking 55% of that amount correctly results in a commission of $594, ultimately summing up to $1,386.

Conclusion

The correct commission received by the buyer's agent is $1,386, derived from a thorough calculation of the sale price and the cooperating fee. Understanding the breakdown of percentages is crucial in accurately determining commissions in real estate transactions, ensuring that agents receive their rightful shares based on the established agreements.

A buyer is purchasing a 3-acre property and is paying $12,000 per acre. The cooperating fee is 3% of the sale price. The buyer's agent will receive 55% of the cooperating fee from a broker. How much commission did the buyer's agent receive?

$1,386

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