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Practice Of Real EstateLicense_lawMEDIUM

Robert is a Connecticut real estate salesperson who negotiated a sale that earned a $15,000 commission. The buyer's attorney contacts Robert directly and offers to pay him the commission. Under Connecticut law, which of the following is correct?

Correct Answer

D) Robert must decline direct payment; all commissions must be paid to and through his supervising broker

Under CGS Chapter 392, a Connecticut real estate salesperson does not have the legal right to receive compensation directly from a buyer, seller, or any party to a transaction. All commissions and compensation must be paid to the supervising broker, who then compensates the salesperson according to their agreement. This is a fundamental rule of Connecticut license law: only licensed brokers may receive real estate compensation from the public.

Answer Options
A
Robert may accept the commission directly because he personally negotiated the transaction
B
Robert may accept the commission directly only if the amount exceeds $10,000 and is disclosed to the CREC
C
Robert may accept the commission if his supervising broker provides written consent
D
Robert must decline direct payment; all commissions must be paid to and through his supervising broker

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Related Topics & Key Terms

Key Terms:

commissioncompensationsupervising_brokersalesperson_restrictionsct_license_law

Related Concepts

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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Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

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