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Practice Of Real EstateLicense_lawEASY

Sandra is a Connecticut real estate salesperson who successfully negotiated a sale and wants to collect her commission directly from the seller at closing. Under Connecticut law, which of the following best describes whether Sandra may do this?

Correct Answer

A) Sandra may not collect the commission directly; compensation must be paid through her supervising broker.

Under CGS § 20-318 and Connecticut license law, a real estate salesperson is prohibited from receiving compensation for real estate services from anyone other than the broker under whom they are licensed. All commissions and fees must flow through the supervising broker, who then compensates the salesperson. This rule exists regardless of any private agreement with the seller.

Answer Options
A
Sandra may not collect the commission directly; compensation must be paid through her supervising broker.
B
Sandra may collect the commission directly because she performed the work that earned it.
C
Sandra may not collect the commission directly unless she holds both a salesperson and broker license simultaneously.
D
Sandra may collect the commission directly if she has a written agreement with the seller signed before the transaction began.

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Related Topics & Key Terms

Key Terms:

salesperson_compensationbroker_supervisioncommission_structurect_license_law

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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