Principal Broker Grace operates a brokerage in Eugene. She wants to share a commission with an out-of-state real estate broker licensed in California who referred a buyer to her. The California broker is not licensed in Oregon. Under Oregon law, may Grace pay a referral fee to the California broker?
Correct Answer
D) Yes, Grace may pay a referral fee to the California broker, provided the California broker does not perform any licensed real estate activities within Oregon
Under Oregon law and consistent with national real estate principles, a licensed Oregon Principal Broker may pay a referral fee to an out-of-state broker who is licensed in their home state, provided that the out-of-state broker does not perform any activities within Oregon that require an Oregon real estate license. The California broker's role must be limited to the referral — they cannot negotiate, show property, or otherwise practice real estate in Oregon. This is a standard cooperative compensation arrangement between licensed brokerages across state lines.
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Related Topics & Key Terms
Key Terms:
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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