Patricia is a Washington Designated Broker who operates a real estate firm. She discovers that one of her affiliated Brokers, Greg, has been accepting compensation directly from a buyer without routing it through the firm. Under RCW Chapter 18.85, which of the following best describes the legal framework regarding compensation to Brokers?
Correct Answer
A) Compensation to a Broker must be paid through the Designated Broker of the firm with which the Broker is affiliated; direct payment to an individual Broker from a party to the transaction is a violation.
Under RCW 18.85, compensation to a real estate Broker must flow through the Designated Broker of the firm with which the Broker is affiliated. A Broker may not accept compensation directly from a party to a transaction — all compensation must be paid to or through the Designated Broker. Greg's direct acceptance of compensation from the buyer violates this requirement, and Patricia, as Designated Broker, has a supervisory obligation to address this violation.
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Related Topics & Key Terms
Key Terms:
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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