California Real Estate Practice Exam

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Real estate commissions are

  1. non-negotiable

  2. fixed by law

  3. negotiable

  4. determined by the local real estate board

The correct answer is: negotiable

Real estate commissions are negotiable because they are not fixed by law or determined by the local real estate board. This means that the final commission amount can be agreed upon by both the real estate agent and the client. Non-negotiable and fixed commissions may imply a set percentage or fee that cannot be changed regardless of the services provided. In contrast, negotiable commissions allow for a more flexible and collaborative agreement between the agent and client.

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