Commission = Sales Price × Commission Rate ` Example: A home sells for $350,000 at a 6% commission rate. - Commission = $350,000 × 0.06 = $21,000 ### Commission Splits — Listing and Selling Brokers Commissions are typically split between the listing broker and the selling (buyer's) broker, then again between broker and agent. Example: - Sales price: $400,000 - Total commission: 6% = $24,000 - Listing broker: 3% = $12,000 | Selling broker: 3% = $12,000 - Listing broker splits 60/40 with listing agent: Agent gets $7,200 - Selling broker splits 50/50 with buyer's agent: Agent gets $6,000 > Exam Tip: Always work through commission splits step by step. Identify the total commission first, then apply each split in sequence. ### Net to Seller Calculation Sometimes you need to find the minimum acceptable sale price given commission and seller's desired net. Formula: ` Sale Price = Desired Net ÷ (1 − Commission Rate) `` Example: Seller wants to net $280,000 after a 6% commission. - Sale price = $280,000 ÷ 0.94 = $297,872.34 --- ## Proration — 365-Day Method Texas uses the 365-day method (also called the calendar method) for prorating taxes, rent, HOA dues, and other items. ### Steps for Proration 1. Find the annual…Unlock the full TX RE Salesperson course — every lesson, the AI tutor, and full mock exams.