An agent has a property listed for $90,000. An optionee pays $600 for a ninety (90) day option to buy the property at $90,000. Which of the following statements BEST describes the listing agent's commission in this transaction?

A. It is earned when the option is entered into.
B. It is earned when the option is exercised.
C. It is paid out of the option consideration.
D. It is paid at the end of the ninety (90)day option period.

Answer: B. It is earned when the option is exercised.

Business

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