Under state law, can a broker pay a commission directly to an unlicensed person for performing licensed real estate activities?

Commission payment rules: A broker may pay compensation for LICENSED real estate activities ONLY to: their own affiliated/sponsored LICENSEES (salespeople, associate brokers); ANOTHER licensed BROKER (e.g., a cooperating broker, per agreement); the broker may NOT pay commissions or compensation for LICENSED ACTIVITIES to UNLICENSED persons.

Prohibited: Paying a 'finder's fee' or commission to an unlicensed person for finding buyers/sellers, negotiating, or performing licensed activities; an unlicensed person performing licensed activities (and being paid) violates license law (both the payer and the unlicensed person may be liable).

Referral fees: Generally must be paid to/through licensed parties; some narrow exceptions exist (e.g., certain limited referral arrangements per state law).

Salesperson payment: Salespeople are paid BY THEIR BROKER (not directly by clients); a salesperson cannot be paid directly by a buyer/seller or by another broker (must go through their sponsoring broker).

Unlicensed assistants: Can be paid a salary/hourly wage for permitted administrative tasks, but NOT commission for licensed activities; the rule that commissions for licensed activities can only flow to licensed persons (and salespeople only through their broker) is fundamental state license law tested on the broker exam — it prevents unlicensed practice.