Dominique holds a Louisiana broker license and operates as a broker-associate under Magnolia Realty. She is approached directly by a buyer who wants her to represent them in purchasing a home. Dominique negotiates the transaction and the sale closes. Who is legally entitled to receive the commission in this transaction under Louisiana law?
Correct Answer
A) Magnolia Realty's principal broker, who must then distribute compensation to Dominique per their agreement
Under Louisiana Real Estate License Law, even though Dominique holds a broker-level license, because she is operating as a broker-associate affiliated with Magnolia Realty, all commissions earned through her brokerage activities must flow through and be paid to the principal broker of the firm with which she is affiliated. The principal broker then compensates Dominique according to their contractual agreement. A broker-associate may not receive compensation directly from parties to a transaction while affiliated with another broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
More Practice Of Real Estate Questions
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