Yes. A broker can share a fee with a principal in the form of a rebate, regardless of the principal's profession or license status. However, the broker is not required to do so. A rebate of part of the broker’s fee to a principal is a business decision made by the broker. If the broker elects to rebate a portion of their commission, the broker must comply with TREC rule 535.147(d).

In this case, since the rebate is going to a buyer who is not your client, you would need your client's written consent prior to paying the rebate, and the intention of paying the rebate would have to be fully disclosed to the lender, title company, and any government agency that might be involved in the transaction. Generally, a buyer's lender must approve of the buyer reciving the rebate, and whatever amount of money the lender does not approve cannot be paid.

No. The Real Estate License Act (TRELA) prohibits brokers from sharing fees received for services as a real estate agent with anyone not licensed as a real estate broker or salesperson in Texas or any other state. (See Section 1101.651, Occupations Code.) You would face disciplinary action for paying a cooperating commission to an attorney.

Although attorneys are exempt from the provisions of TRELA (see Section 1101.005, Occupations Code) and are permitted to represent clients in real estate transactions, attorneys must seek compensation for those services directly from one of the principals in a transaction.

A broker is not prohibited by The Real Estate License Act from sharing a fee with a principal. Any fee-sharing arrangement, however, should be disclosed on the HUD-1 Settlement Statement.<br/><br/> Sellers and buyers signing the HUD-1 Settlement Statement represent that the settlement statement is a true and accurate statement of all receipts and disbursements made in connection with closing of the transaction. The HUD-1 Settlement Statement usually contains a warning that making a false statement on it is a federal crime punishable by a fine or imprisonment. A broker participating in any scheme to pay money to a buyer outside of the closing might risk similar penalties. <br/><br/> Note: REALTORS® advertising or otherwise representing that they will share fees with a party in a transaction must disclose in the ad that the rebate is subject to the consent of the party that the broker represents. Also, if the rebate is contingent upon certain restrictions, such as approval by the lender, the ad must contain a disclosure that payment of the rebate is subject to restrictions.

You owe the agent fees earned before the termination was effective. According to Paragraph 16C of the Independent Contractor Agreement for Sales Associate (TXR 2301), an agent’s fees are earned at the time a broker's fees are earned under the applicable agreement for brokerage services—unless the fees are subject to arbitration or litigation.

Each brokerage agreement (i.e. Listing Agreement or Buyer's Represenation Agreement) defines when a broker's fees are earned. Generally, a broker's fees are earned when contracts or leases are fully executed. Paragraph 21B addresses the issue of fees payable to the departing agent if they are unpaid as of the termination date. The parties could agree to other rules regarding this fee sharing, but a different agreement should be in writing to prevent disputes.