Linda is a Rhode Island licensed salesperson who recently left Broker ABC Realty to join Broker XYZ Realty. A transaction she initiated while at ABC Realty closes after her transfer to XYZ Realty. Who is entitled to pay Linda her commission for that transaction?
Correct Answer
D) ABC Realty, because Linda was affiliated with that broker when the transaction was initiated
Under R.I. Gen. Laws § 5-20.5, a salesperson may only receive compensation through the broker with whom she was affiliated at the time the services giving rise to the commission were performed. Since Linda initiated the transaction while licensed under ABC Realty, the commission for that transaction belongs to ABC Realty, which then disburses Linda's share per their compensation agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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