Can a broker split their commission with a buyer?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 6 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 6 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.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.