A sponsored sales agent receives a check made out directly to her — not to her sponsoring broker — as compensation for closing a residential sale. Under TRELA, which of the following best describes the legal issue with this payment?
Correct Answer
C) This violates TRELA because sales agents may only receive compensation through their sponsoring broker, not directly from a party to the transaction
Under Texas Occupations Code §1101.651(b), a sales agent may not accept compensation for a real estate transaction from any person other than the sponsoring broker. All compensation must flow through the broker, who then pays the sales agent. This requirement exists regardless of the broker's consent or the agent's experience level, and it reinforces the broker's supervisory and financial accountability over sponsored agents.
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