If someone is involved inthe sale ofcommercial real estatebut is unlicensed, can they be paid a commission from either the buyer or seller?

Individual knows both parties in the transaction and has put them together to create the deal. Can this individual be paid a commission? If not, can they be compensated by the parties to the transaction?

Asked on March 11, 2011 under Real Estate Law, Florida


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You can always thank that some one for helping to put you and the other person together and make the deal happen, but if you wanted to in some way compensate them for a job (and possibly deduct their compensation from your transaction), then I would think that that would be a form of brokering and I am fairly sure that you would have to be licensed in Florida to do so.  You would issue them a 1099, correct? Then how would you categorize their role in the matter to justify issuing it other than as a broker?  Check with an accountant just to be sure about categorizing the transaction. Good luck to you.

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