Broker Diana at Rainier Realty successfully closes a sale for seller client Greg. At closing, Greg is so pleased with Diana's work that he hands her a personal check for $1,000 as a bonus, in addition to the commission already specified in the listing agreement. Diana wants to accept the bonus. Under Washington law, what must Diana do to lawfully receive this payment?
Correct Answer
A) Diana must have the payment made to her designated broker, who can then disburse it to Diana per their compensation agreement
Under RCW 18.85.361, a broker may only receive compensation for real estate activities through the designated broker of the firm with which the broker is affiliated. This applies to all forms of compensation, including bonuses and gratuities from clients, not just the base commission. Diana cannot accept the check directly — the payment must be made to the designated broker, who then distributes it to Diana in accordance with their compensation agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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