A sales agent wants to charge a former client an hourly consulting fee for real estate advisory services rather than a commission. Under TRELA, which condition must be met for this arrangement to be permissible?
Correct Answer
B) The compensation must flow through the sales agent's sponsoring broker, regardless of the fee structure used
Under TRELA, the form of compensation — whether commission, flat fee, hourly rate, or another structure — is not restricted. What is required is that all compensation paid to a sales agent flow through the sponsoring broker. The broker receives the fee and then pays the agent pursuant to their agreement. As long as this requirement is satisfied, an hourly consulting fee arrangement is permissible.
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