5.) How much is the commision? How much does Fred receive and how much does the

Question

5.) How much is the commision? How much does Fred receive and how much does the salesperson receive? Kyle and Mary Ann Selby decide to selltheir home and contact Fred of Fred Schwartz Realty, to discuss their options. Fred prepares acompetitive market analysis and then meets with the Selbys to explain different listing agreements. The selbys choose an exclusive-agency listing. The agreed-on commission is 5%. The sales price iss450,000. The agreement is signed on May 30.Three days later, Fred posts a"Forsale" sign on the front lawn. Fred lists the property on the multiple listing service and offers a 5050 commission splitto a selling broker. He also begins advertising in the sunday newspaper and bolds an open house. However, a salesperson in Fred's 1. What advantages do the selbys erjoy from the exclusive-agency listing? What are the disadvantages? 2. What advantages does Fredschwartz enjoy from the exclusive agency listing? What are the disadvantages? What is the effective date of the listing agreement? why? 4. Who is the procuring cause of the sale? Why? 5. How much is the commission? How much does Fredreceive und how much does the salesperson receive?

Explanation / Answer

Ans(5):

Commission is 5% of selling price so 5% of 400000= 0.05 * 400000 = $20000

Fred's ofered 50/50 of commission then Fred and sales person both will recieve half of 20000 that is $10000

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