Broker Lisa at Olympic Realty is negotiating a commission split with her designated broker, David. Lisa wants to receive 70% of the commission on all transactions she personally closes. Under Washington law, which of the following statements is most accurate about this arrangement?
Correct Answer
B) The commission split between a broker and designated broker is a private contractual matter and is not regulated by the DOL
Washington law does not regulate or set maximum or minimum commission splits between a broker and their designated broker. The compensation arrangement between affiliated licensees is a private contractual matter governed by the independent contractor or employment agreement between the broker and the firm. The DOL regulates how compensation is paid (through the designated broker) and the conduct of licensees, but not the percentage split itself.
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Related Topics & Key Terms
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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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