Under what condition can brokers share a commission?

Brokers can share a commission when the seller authorizes it because this permission is a fundamental requirement in real estate transactions. The seller, as the party who originally agrees to pay the commission, has the authority to dictate how the commission can be distributed among different brokers involved in the transaction.

When the seller grants permission for a commission split, it establishes a clear understanding of how compensation will be allocated. This practice often occurs in transactions where multiple agents or brokers are working to facilitate the sale, ensuring that everyone's contributions are fairly compensated. Moreover, any commission-sharing arrangements should ideally be outlined in the listing agreement or other contractual documents to maintain transparency and protect the interests of all parties involved.

Other options hinge on conditions that do not accurately reflect the standard practices of commission sharing in real estate transactions. For instance, while the buyer's agreement or multi-state transactions may involve various considerations, they do not directly establish the basis for commission sharing without the seller's consent. Additionally, commission sharing is a common and legally acceptable practice in real estate, refuting the claim that it is never allowed.