From whom may a licensee accept a commission?

A licensee may accept a commission from the broker they are licensed to because brokers are the individuals or entities that have the authority to manage and handle real estate transactions, including the distribution of commissions. In the real estate profession, the broker is typically the one who receives the commissions from the parties involved in a transaction and then pays the licensees who work under them according to their agreements.

The relationship between a licensee and their broker is essential as it establishes the legal framework through which the licensee operates. By accepting a commission from the broker, the licensee ensures that they are following the proper protocols and complies with the regulations set forth by the state’s real estate commission. This helps maintain professionalism and transparency in real estate transactions.

In contrast, although clients may reward a licensee for services rendered, any commission-related payments typically flow through the broker. Likewise, while other parties like title companies may be involved in transactions, they traditionally do not pay the licensees directly. Therefore, the most appropriate and compliant source for a licensee to receive a commission is indeed their supervising broker.