A salesperson's commission may be paid ONLY by whom in NH?
Question & Answer
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The buyer
The buyer may ultimately pay the commission as part of the purchase price, but cannot directly pay the salesperson. Payment must go through the broker who then distributes it according to their agreement with the salesperson.
The seller
While the seller typically pays the commission, they cannot directly pay the salesperson. New Hampshire law requires that all compensation flow through the broker who holds the license and is responsible for the transaction.
Buyer or seller
Neither the buyer nor seller can directly pay the salesperson. The broker must receive all compensation first, then distribute it to the salesperson according to their written agreement.
The salesperson's broker
Why is this correct?
In NH, as in most states, commission must flow through the broker only. The salesperson is an independent contractor, not an employee, so they cannot directly receive payment from clients. The broker holds the license and is legally responsible for all transactions and funds.
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