In a cooperative listing, the reduced commission is payable by the seller when the buyer is which?

• A. A broker other than the listing broker
• B. The spouse of an associate of the selling broker
• C. A member of the city council
• D. The selling broker

Answer: (A)

In a cooperative listing, the seller agrees to a total commission with the listing broker, who then shares part of that commission with the buyer’s broker if one is involved. The reduced commission comes into play when the buyer is represented by a broker from a different firm than the listing broker. Because another broker is involved, the seller’s overall payment to the two firms is adjusted downward to reflect that the buyer’s broker will be paid from the listing broker’s pool, and no extra or duplicative payment is needed. The other scenarios listed do not establish the normal basis for reducing the seller’s commission: they involve people whose involvement doesn’t change how the co-brokerage fee is calculated.