Broker Janet listed a property for $320,000 with a 6% total commission. The property sold and a cooperating broker brought the buyer. The listing agreement specified a 50/50 commission split between cooperating brokers. Janet's salesperson, Marcus, is entitled to 40% of the listing side commission per their internal agreement. How must Marcus receive his share of the commission under Michigan law?
Correct Answer
D) Marcus must receive his commission share paid by Janet's broker to him after the broker receives the full commission
Under MCL 339.2512, all compensation to a salesperson must be paid through the employing broker. The commission flows from the seller to the listing broker, who then distributes the cooperating broker's share and pays Marcus his portion. Marcus cannot receive payment from any source other than his employing broker Janet, regardless of documentation or authorization.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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.
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