A supervising broker discovers that an agent has been collecting commission checks directly from clients instead of routing them through the brokerage. What is the primary concern?

Correct Answer

D) The agent may be operating without proper supervision, and commissions must generally be paid through the employing broker

In most jurisdictions, commissions must be paid to the employing broker, who then distributes the agent's share. An agent collecting commissions directly bypasses required broker supervision and violates licensing laws.