Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

To determine Broker Allen's commission, we first need to calculate the total rent value of the lease over its three-year term. The rental rate is $14.50 per square foot, and the total leased area is 5,000 square feet.

The calculation starts by finding the annual rent:

Annual Rent = Rental Rate per SF × Total SF

Annual Rent = $14.50 × 5,000 = $72,500

Next, to find the total rent for three years, multiply the annual rent by the number of years:

Total Rent = Annual Rent × Number of Years

Total Rent = $72,500 × 3 = $217,500

Now, with the total rent calculated, the broker’s commission can be found by applying the 3% commission rate to the total rent over the entire term:

Broker's Commission = Total Rent × Commission Rate

Broker's Commission = $217,500 × 0.03 = $6,525

Thus, Broker Allen's commission after negotiating the lease is indeed $6,525. This definitive calculation reflects how commissions are derived from total rental value across the length of the lease, demonstrating the agent’s compensation based on negotiated percentages of total contractual amounts.