Arizona Real Estate Salesperson Exam — All Questions

A home sells for $420,000. The total commission is 6%, split equally between the listing and selling brokerages. How much does the listing brokerage receive?

• a.$12,600✓
• b.$25,200
• c.$6,300
• d.$18,900

Total commission is $420,000 x 0.06 = $25,200. Splitting equally, each brokerage receives $25,200 / 2 = $12,600. The $25,200 figure is the full commission before the split, so it is not the listing brokerage's share alone.

An investor buys a property producing $36,000 in annual net operating income and wants a 9% capitalization rate. What value supports that return?

• a.$324,000
• b.$400,000✓
• c.$450,000
• d.$40,000

Value equals net operating income divided by the cap rate: $36,000 / 0.09 = $400,000. Multiplying instead of dividing ($36,000 x 9 = $324,000) is a common error, and $324,000 would imply a much higher cap rate than 9% for this income.