How is the total commission due calculated?

The total commission due is calculated by taking the sale price and multiplying it by the broker's commission rate. This method effectively determines the amount earned by the broker as a result of the transaction.

When a property is sold, the sale price reflects the amount that the buyer pays for the property. The broker's commission rate, typically expressed as a percentage, indicates how much of that sale price will be compensated to the broker for their services. Therefore, multiplying the sale price by the broker’s commission rate provides the total commission amount that is due upon closing of the sale.

The other options outlined do not accurately reflect the calculation of total commission due because they incorporate factors or misinterpret the components involved. For instance, using the listing price or adding closing costs does not contribute to determining the commission owed to the broker based on the sale transaction itself. By focusing solely on the sale price and the broker's commission rate, the correct calculation directly corresponds to the earnings from the specific transaction.