What is the abandonment administration fee?

• A. $75.00
• B. $50.00
• C. $100.00
• D. $0.00

Answer: (A)

The concept being tested is what the abandonment administration fee covers and what amount is set for it. This fee is the charge a brokerage applies when a client terminates or abandons a transaction, to recover the administrative work involved in closing the file and freeing up resources used during the process. The material establishes a standard amount for this fee, which is seventy-five dollars.

This amount is not a penalty; it reflects the costs of administrative tasks such as finalizing the file, processing records, and handling the termination in the system. Other dollar amounts are not consistent with the policy provided in the material, which specifies seventy-five dollars.