Can a Sales Agent Negotiate Commission Directly With a Client?

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

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

In addition, the Real Estate License Act says a sales agent may only accept compensation for a real estate transaction from her sponsoring broker or a broker who previously sponsored her at the time she earned the compensation. This would preclude a sales agent from negotiating directly with a client without the broker’s knowledge and consent if those negotiations are to receive compensation without her broker’s involvement.

Source: TAR

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