Ontario Real Estate Licensing Exam Practice · Question
A property in Ottawa sells for $680,000. The listing brokerage charges a 5% commission on the first $100,000 and 2.5% on the remainder. The co-operating brokerage is offered 50% of the total commission. What is the total commission paid to the listing brokerage before HST?
Calculated as (5% * $100,000) + (2.5% * $580,000) = $5,000 + $14,500 = $19,500 total commission. The listing brokerage receives 50% of this, which is $9,750. Ho
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Question: A property in Ottawa sells for $680,000. The listing brokerage charges a 5% commission on the first $100,000 and 2.5% on the remainder. The co-operating brokerage is offered 50% of the total commission. What is the total commission paid to the listing brokerage before HST?
Answer options: ✅ $19,500
- $29,000
- $9,750
- $14,500
Correct answer: $19,500
Explanation: Calculated as (5% * $100,000) + (2.5% * $580,000) = $5,000 + $14,500 = $19,500 total commission. The listing brokerage receives 50% of this, which is $9,750. However, the question asks for the total commission paid to the listing brokerage before sharing with the co-operating brokerage, which is the total amount they earned before any split.
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