Elena is a licensed Nevada broker-salesperson working under Principal Broker Harris at Summit Realty. A client asks Elena to receive her commission directly from the client rather than through Broker Harris. Elena agrees and accepts a check directly from the client. Under Nevada law, which of the following best describes the consequence of this arrangement?
Correct Answer
C) The arrangement violates Nevada law because all compensation to a salesperson or broker-salesperson must flow through their supervising broker.
Under NRS 645.280, a salesperson or broker-salesperson may not accept compensation for real estate activities from any person other than their employing broker. All compensation — including commissions, referral fees, and any other remuneration — must flow through the supervising broker. This rule applies equally to salespersons and broker-salespersons. Elena's direct receipt of compensation from the client violates NRS 645.280 and is grounds for disciplinary action against both Elena and potentially Broker Harris.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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.
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