Can a broker split their commission with a buyer?
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Can a broker split their commission with a buyer?
Is there any rule or law prohibiting a broker to split their commission with a
buyer?
Asked on July 5, 2018 under Real Estate Law, Colorado
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Under the law, only a duly licensed real estate broker may receive a real estate commission. So if the buyer is so licensed, then yes they can be paid a commision, otherwise no they cannot be so paid. If an unlicensed buyer ccepts a commission, then they face fines, etc. in addition to having return any amounts that they were paid.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
This is illegal. ONLY a licensed real estate broker may receive a commission on real estate--no other person, including the buyer (unless the buyer is a licensed broker or agent) can receive a share or part of the commission. Doing this could subject the buyer to significant fines or liabilty, and they'd also have to give back whatever they received from the broker.
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