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Practice Of Real Estate DisclosuresDre_regulationsMEDIUM

A California real estate salesperson is asked by a friend to help sell their home. The friend offers to pay the salesperson directly for the service. Under California law, can the salesperson accept direct payment from the friend?

Correct Answer

A) No, a salesperson can only receive compensation for real estate services through their employing broker

Under Cal. B&P Code §10137, a real estate salesperson may only receive compensation for real estate services from their employing broker. Direct payment from clients or third parties to a salesperson is prohibited. All compensation must flow through the broker.

Answer Options
A
No, a salesperson can only receive compensation for real estate services through their employing broker
B
Yes, because the salesperson and the friend have a personal relationship
C
Yes, as long as the salesperson reports the income on their tax return
D
No, but the salesperson can accept the payment if they obtain a temporary independent contractor permit from the DRE

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Related Topics & Key Terms

Key Terms:

DREcompensationbroker_onlysalespersonBP_Code_10137

Related Concepts

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