If a broker purchases property for $10,000 and resells it for $12,000, what is this considered?

The correct answer indicates that when a broker purchases property for a specific price and then resells it for a higher amount, this transaction is recognized as a typical business practice within real estate. It reflects the concept of generating a profit through a legitimate sale, which is part of lawful activities in the real estate market.

In this situation, the broker has effectively engaged in what is known as flipping a property, where the aim is to buy low and sell high. This is a standard practice in real estate investment, demonstrating the broker's ability to identify value and potentially improve the property before resale or simply take advantage of market conditions.

While other options may involve violations or negative connotations, such as conspiracy or illegal commissions, this scenario does not imply any wrongdoing or malfeasance. It is an acceptable and legal way to conduct business in the real estate industry, assuming all transactions are done transparently and comply with applicable laws and regulations.