Question

The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?

Answer 1

Answer:

$4,240

Explanation:

A listing contract is a contract between the owner of a property and real estate broker. It's a legal document that gives the real estate broker the rights to sell your home.

In this case, since the house was sold by the owners during the listing period, the real estate company is entitled to the 4% on sale agreed upon.

Thus,

Commission entitled = 106,000 × 4%

= 106,000 × 0.04

= $4240