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Pa Licensing Requirements CePre_license_educationEASY

A newly licensed salesperson in Pennsylvania is asked by a friend to help sell their home for a reduced commission. Under RELA, can the salesperson negotiate their own commission rate?

Correct Answer

A) Commission rates are negotiable, but the salesperson can only earn what their broker agrees to pay them

Commission rates are always negotiable in Pennsylvania and are not fixed by law. However, a salesperson can only receive compensation through their broker of record. The commission arrangement between the brokerage and the client is set by the broker, and the salesperson's share is determined by their agreement with the broker.

Answer Options
A
Commission rates are negotiable, but the salesperson can only earn what their broker agrees to pay them
B
No, all commission rates in PA are fixed by state law at 6%
C
Yes, salespersons set their own commission rates independently
D
Commission rates are set by the local Board of Realtors

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Related Topics & Key Terms

Key Terms:

commissionnegotiablebroker_paymentantitrust
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