Under Montana law, how must a real estate salesperson receive compensation for their services?
Correct Answer
B) Through their supervising broker only
Montana law (MCA 37-51-321) requires that all compensation paid to a real estate salesperson or associate broker must be paid through their supervising broker. A licensee may not receive compensation directly from a buyer, seller, or any other party to a transaction, nor directly from another broker. This requirement ensures that the supervising broker maintains oversight and accountability over all transactions conducted by licensees under their supervision.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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- → A Vermont licensee is asked about a designated agency firm appoints separate agents for buyer and seller. What is the best answer?
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