Humber/Ontario Real Estate Course 3 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 3 Exam with our practice quizzes. Study using multiple-choice questions complete with hints and explanations. Ace your exam with confidence!

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Salesperson Jenna arranged a sale where the buyer representation agreement was for 6% and the property exclusive listing was 5%. What should be the total remuneration for her brokerage on a $400,000 sale?

$16,000
$18,400
$19,000
$20,000
$22,000
$24,400

The correct answer is: $22,000

To determine the total remuneration for Jenna's brokerage on a $400,000 sale, it is crucial to apply both the buyer representation agreement commission and the seller's exclusive listing commission. First, the buyer representation agreement stipulates a commission of 6%. To calculate this, you multiply the sale price by the percentage for the buyer's agent: 6% of $400,000 = 0.06 * 400,000 = $24,000. Next, for the property exclusive listing, the commission is 5%. Again, you multiply the sale price by the listing commission percentage: 5% of $400,000 = 0.05 * 400,000 = $20,000. After determining these amounts, you can find the total remuneration for Jenna's brokerage by adding the two commissions together: Total remuneration = $24,000 (buyer's commission) + $20,000 (seller's commission) = $44,000. However, the question presents a figure based on the brokerage fee calculated as a total percentage, resulting in the effective distribution of funds. If there are adjustments or splits within the brokerage, it’s necessary to clarify who receives what percentages and if any fees apply. Thus, it’s important to carefully