A Rhode Island salesperson asks about a principal broker plans to pay commission directly to a team. What is the best answer?
Correct Answer
B) The principal broker must not pay commissions to a team and instead pays each individual licensee or permitted wholly owned entity
230-RICR-30-20-2 § 2.21 states that the principal broker shall not pay commissions to a team but shall pay each individual licensee under supervision or a permitted wholly owned entity. Source basis: Rhode Island Department of State official regulation 230-RICR-30-20-2 § 2.21 and R.I. Gen. Laws § 5-20.5-14; checked 2026-04-30.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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