What is the correct answer to: A Missouri salesperson may receive compensation from:

The correct answer is Their employing broker only. Under Missouri law (RSMo §339.160), a real estate salesperson may only receive compensation from their employing broker — never directly from a buyer, seller, or any other party to a transaction. The employing broker receives the commission from the transaction and then pays the salesperson their agreed-upon split. This requirement exists because the salesperson's license is held under the broker's supervision, and the broker bears legal responsibility for the salesperson's conduct. Even if a buyer or seller wanted to pay a salesperson directly, accepting that payment would be a license law violation.

What background knowledge is needed for this Agency question?

Missouri's compensation rules for salespersons are rooted in the fundamental structure of real estate licensing: salespersons are not independent contractors in the legal sense of being able to operate without broker oversight. Under RSMo §339.010 and §339.160, a salesperson must be affiliated with and supervised by a licensed Missouri broker. The broker-salesperson relationship creates a chain of accountability — the broker is responsible for the salesperson's actions, and in exchange, all compensation flows through the broker. This rule also applies to referral fees: if a salesperson refers a client to another agent or receives a referral, that compensation must go through their broker. Missouri brokers and salespersons often operate under independent contractor agreements for tax purposes, but this does not change the compensation flow requirement under license law.

What is a good way to remember the answer to this Agency question?

Visualize a funnel: All money from any source (buyer, seller, cooperating broker, title company) flows INTO the wide top of the funnel — that's the BROKER. The narrow bottom of the funnel is where the SALESPERSON receives their portion. Money can only reach the salesperson by going through the broker funnel first. Nothing bypasses the funnel. On the exam, whenever you see a question about who pays a salesperson, picture the funnel. No matter who is at the top (buyer, seller, title company), the money must pass through the broker before reaching the salesperson. The answer will always be 'through/from the employing broker.'

What exam tip applies to this Agency question?

This is a straightforward Missouri license law question. The answer is always 'employing broker only.' Missouri does not allow salespersons to receive compensation from any other source. Watch for trick answers that mention the buyer, seller, title company, or 'any party' — all are wrong.

How does this Agency concept apply in real world practice?

A Springfield salesperson closes a deal where the seller agreed to pay a 6% commission. At closing, the title company disburses the full commission to the salesperson's employing broker. The broker then writes a check to the salesperson for their agreed 70% split. If the seller had tried to hand the salesperson a check directly at the closing table, the salesperson would be required to refuse it and direct the payment to the broker.

AgencyCompensationEASY

A Missouri salesperson may receive compensation from:

Correct Answer

B) Their employing broker only

Missouri salespersons must receive all compensation through their employing broker. Direct payments from other parties are prohibited.

Answer Options

Any party

Their employing broker only

The buyer directly

The title company

Why This Is the Correct Answer

Why the Other Options Are Wrong

Deep Analysis of This Agency Question

Background Knowledge for Agency

Real World Application in Agency

Common Mistakes to Avoid on Agency Questions

Related Concepts

Agency Termination

The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.

Confidentiality Duty

The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.

Customer vs Client

In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.

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A Missouri salesperson may receive compensation from:

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