Broker Dana operates a real estate firm in Missoula, Montana. She wishes to share a commission with an out-of-state broker who referred a buyer to her. The out-of-state broker holds a valid license in Oregon but is not licensed in Montana. Under Montana law, which of the following is correct?
Correct Answer
B) Dana may pay the referral fee to the Oregon broker because Montana allows commission sharing with brokers licensed in other states.
Montana law allows a Montana-licensed broker to share or pay a commission or referral fee to a broker licensed in another state, provided that the out-of-state broker does not conduct any Montana-regulated real estate activity within Montana. The Oregon broker's valid license satisfies the requirement that the recipient be a licensed real estate professional, making the referral fee payment permissible under MCA Title 37, Chapter 51.
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Related Topics & Key Terms
Key Terms:
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.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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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