Can an agent accept a bonus directly from a client without the approval of their broker?
No. A sales agent can only receive compensation, including bonuses, with the written consent of their sponsoring broker, according to The Real Estate License Act (TRELA) §1101.651(b) and (c) and TREC Rule §535.3.
For example, if a builder offers a cash bonus or a car to agents in return for completed transactions, the sponsoring broker must approve the compensation before the agent can accept it. If the sales agent changes brokers, the sponsoring broker of the agent at the time the agent became entitled to the compensation can approve the payment.
Would the broker at the time the contract was signed (as Agent is acting on behalf of the broker) not be the one (by law) that would have to approve the compensation?
That is exactly what they said…. If the sales agent changes brokers, the sponsoring broker of the agent (at the time the agent became entitled) to the compensation can approve the payment…
Any bonuses I have received through the years was approved at the time of my dispursements.
If my broker doesn’t give the agent bonus, will I need to issue 1099 form to broker