Who determines the real estate commission on a particular deal?

Prepare for the New York Real Estate Salesperson Test with interactive multiple choice questions and detailed explanations on each topic. Study effectively and pass your exam with confidence!

The determination of the real estate commission on a particular deal typically involves the sponsoring broker and the client. The commission rate is commonly negotiated between these two parties, reflecting the services provided by the broker and the specifics of the transaction.

In most real estate transactions, the sponsoring broker represents either the seller or the buyer, and it is through this representation that commission agreements are formalized. The broker's experience, market conditions, and the specifics of the property often play crucial roles in how the commission is structured.

This negotiation process allows for flexibility and the possibility of customizing the situation based on the needs of the client, making it a vital aspect of real estate transactions. The other options listed do not accurately reflect the standard practices for setting commission rates.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy