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Practice Of Real EstateLicense_lawMEDIUM

Lisa is a Connecticut licensed real estate salesperson working for Sunrise Realty. A seller offers to pay Lisa a $5,000 bonus directly for her outstanding work on a transaction. Under Connecticut law, how must this bonus be handled?

Correct Answer

C) Lisa cannot accept compensation directly from the seller; all compensation must be paid through her supervising broker at Sunrise Realty

Under CGS Chapter 392, a Connecticut real estate salesperson cannot legally receive compensation — whether commission, bonus, or any other form of payment — directly from a principal (buyer, seller, landlord, or tenant). All compensation must flow through the salesperson's supervising broker. The broker then distributes the salesperson's share. This rule protects consumers and maintains accountability through the broker-salesperson relationship.

Answer Options
A
Lisa may accept the $5,000 directly from the seller because it is a bonus, not a commission, and bonuses are exempt from broker supervision rules
B
Lisa may accept the $5,000 directly only if her supervising broker provides written consent in advance of the payment
C
Lisa cannot accept compensation directly from the seller; all compensation must be paid through her supervising broker at Sunrise Realty
D
Lisa may accept the $5,000 directly from the seller as long as she reports it to CREC within 30 days of receipt

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Related Topics & Key Terms

Key Terms:

compensationbroker_supervisionsalesperson_restrictionslicense_requirements

Related Concepts

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.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

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