January 01, 2018

Can a Sales Agent Negotiate Commission Directly With a Client?

February 01, 2018 No. Commission negotiations should only occur with a broker’s knowledge and consent. If a commission negotiation comes up between a sales agent and her client, she should tell the client that all negotiations are subject to her broker’s approval. In addition, the Real Estate Licens
Background

February 01, 2018

No. Commission negotiations should only occur with a broker’s knowledge and consent.

If a commission negotiation comes up between a sales agent and her client, she should tell the client that all negotiations are subject to her broker’s approval.

In addition, the Real Estate License Act says a sales agent may only accept compensation for a real estate transaction from her sponsoring broker or a broker who previously sponsored her at the time she earned the compensation. This would preclude a sales agent from negotiating directly with a client without the broker’s knowledge and consent if those negotiations are to receive compensation without her broker’s involvement.