Under what condition can a sales associate be paid a portion of a commission by a closing agent?

Under what condition can a sales associate be paid a portion of a commission by a closing agent?

• A. If it is verbally agreed upon
• B. If instructions are provided in writing by the broker
• C. If the client approves
• D. If it's a customary practice

Answer: (B)

A sales associate can be paid a portion of a commission by a closing agent when there are written instructions provided by the broker. This requirement ensures that all parties involved have a clear understanding of the commission structure and the distribution of funds. Written instructions help maintain transparency and prevent misunderstandings regarding payment. It also aligns with the regulatory framework governing real estate transactions, which emphasizes the importance of documentation and formal agreements in financial arrangements. Verbal agreements or customary practices without written documentation may not provide the necessary legal protection or clarity in the transaction process. Furthermore, while client approval is important in real estate deals, the payment of commission portions specifically requires adherence to broker guidance, making written instructions the essential criterion for this situation.

A sales associate can be paid a portion of a commission by a closing agent when there are written instructions provided by the broker. This requirement ensures that all parties involved have a clear understanding of the commission structure and the distribution of funds. Written instructions help maintain transparency and prevent misunderstandings regarding payment. It also aligns with the regulatory framework governing real estate transactions, which emphasizes the importance of documentation and formal agreements in financial arrangements.

Verbal agreements or customary practices without written documentation may not provide the necessary legal protection or clarity in the transaction process. Furthermore, while client approval is important in real estate deals, the payment of commission portions specifically requires adherence to broker guidance, making written instructions the essential criterion for this situation.