In general, may a broker pay a commission or referral fee to an unlicensed person for performing licensed real estate activity?

State license laws generally prohibit paying a commission or fee to an unlicensed person for performing activities that require a real estate license — such as negotiating, listing, or soliciting clients. A broker who pays an unlicensed individual for licensed activity, or who allows an unlicensed person to perform such activity, commits a violation. There are limited exceptions in some states (for example, a property owner selling their own property, or modest, non-commission referral incentives to past clients where permitted), but these are narrow and vary by state. The core rule — no compensation to the unlicensed for licensed work — is a consistent state broker-portion principle.