Arizona Real Estate License Practice Exam

Question: 1 / 1505

What is the most likely scenario after Ivy's negotiation with Jack is completed?

Ivy and Jack are both paid by Green Realty

Ivy and Jack are both paid by Scarlet Realty

Ivy and Jack are both paid by the seller

Ivy is paid by Green Realty and Jack by Scarlet Realty

In real estate transactions, it is typical for each agent to represent their own brokerage or firm while negotiating deals. In this scenario, Ivy, who is presumably working with Green Realty, would receive her commission from that brokerage. Conversely, Jack, who is likely affiliated with Scarlet Realty, would receive compensation from his own firm. This arrangement is common practice, as commissions are generally split between client and agent, with each agent's brokerage handling the distribution of those payments.

This setup ensures that both agents are compensated for their work while maintaining the independence of their respective brokerages. The explanation provided aligns with standard real estate commission practices, where agents are paid by their respective firms regardless of the outcome of negotiations.

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