Real Estate · State License Law and Commission

In general, who may a licensed salesperson lawfully receive real estate commission payments from?

Correct answer

Only from their sponsoring or employing broker, not directly from the parties to the transaction

  1. A Directly from the buyer or seller
  2. B Only from their sponsoring or employing broker, not directly from the parties to the transaction
  3. C From any party who offers it
  4. D From another salesperson directly

Why this is the answer

Across the states, a salesperson (or associate broker) generally may be paid a real estate commission only by the broker under whom they are licensed, not directly by the buyer, seller, or another agent. The broker is the party to the listing or commission agreement; the salesperson's compensation flows through that broker. This rule reinforces the broker's supervisory responsibility and the chain of accountability in a transaction. Paying or accepting commissions outside this structure — for example, a seller paying a salesperson directly, or paying an unlicensed person for licensed activity — is a common violation. Specific exceptions and details vary by state, but the general principle is consistent.
Source: Real Estate State Portion, Compensation Rules

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