Under Ohio law, salesperson Hart is affiliated with Broker Quinn. Hart enters into an unauthorized side agreement with a buyer, promising a $2,000 rebate from Hart's personal funds if the buyer purchases through Hart. Under ORC Chapter 4735, is this permissible?
Correct Answer
C) No, because all compensation must flow through the broker under ORC Chapter 4735
Under ORC §4735.20, an Ohio salesperson may only receive compensation from their employing broker. Hart cannot independently enter into compensation agreements or pay rebates without the broker's knowledge and authorization.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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