Under Connecticut law, which party is legally entitled to receive the real estate commission in a transaction where a salesperson acting as a dual agent successfully closes a sale?
Correct Answer
B) The supervising broker, who then compensates the salesperson according to their agreement
Under Connecticut law (CGS Chapter 392), only a licensed broker may receive a real estate commission directly. A salesperson may not receive compensation directly from a buyer, seller, or any party to a transaction. All commissions must flow through the salesperson's supervising broker, who then compensates the salesperson pursuant to their employment or independent contractor agreement. This rule applies in all transaction types, including dual agency transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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