Who has to be involved in commission negotiations?

Can a Sales Agent Negotiate Commission Directly With a Client Without Their Broker's Knowledge or Involvement?

No. Commission negotiations should occur only with a sales agent's broker’s knowledge and consent.

If a commission negotiation comes up between a sales agent and their client, they should tell the client that all negotiations are subject to their broker’s approval.

In addition, the Real Estate License Act says a sales agent may only accept compensation for a real estate transaction from their sponsoring broker or a broker who previously sponsored them at the time they earned the compensation. This would preclude a sales agent from negotiating directly with a client to receive compensation without their broker’s involvement.

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