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Practice Of Real EstateLicense LawMEDIUM

Broker Michelle receives a commission check from a seller at the closing of a residential sale in Manchester, NH. Her salesperson, Greg, is entitled to 60% of the commission under their written agreement. Under RSA Chapter 331-A, which of the following correctly describes how Greg must receive his share of the commission?

Correct Answer

B) Greg must receive his commission share through his supervising broker, Michelle

Under RSA 331-A, a salesperson may only receive compensation for real estate services from their supervising broker. Greg cannot receive commission payments directly from sellers, buyers, closing attorneys, or any other party. All compensation must flow through the licensed broker, Michelle, who then pays Greg according to their written compensation agreement.

Answer Options
A
Greg may receive his share directly from the seller at closing, bypassing the broker
B
Greg must receive his commission share through his supervising broker, Michelle
C
Greg may receive his share from the closing attorney's escrow account directly
D
Greg must receive his share from the New Hampshire Real Estate Commission's escrow fund

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Related Topics & Key Terms

Key Terms:

commission_paymentsalesperson_compensationbroker_intermediaryrsa_331_a

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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