Department of Commerce Regulations – 3 Tips on Compensation

  1. A licensee shall not accept compensation or other consideration, including referral fees, for the performance of any acts requiring a real estate license from any person except the real estate broker to whom he is licensed or to whom he was licensed at the time of the transaction.
  2. A licensee shall not accept, give or charge any undisclosed commission or realize any direct or indirect compensation that is paid to or for the benefit of the licensee on an expenditure made for a principal. An example of this would be commissions received on homeowner warranty packages. Such a commission must be disclosed.
  3. A licensee may not pay any portion of his/her compensation to an unlicensed person except a licensee may pay part or all of his/her compensation to a principal to the transaction in which the licensee is involved, (i.e. buyer’s agent sharing his/her compensation with the buyer, a listing agent sharing his/her compensation with a seller). If a licensee is sharing his/her compensation with a party to the transaction who is not being represented by the agent, the agent should advise his/her client that he/she is paying a portion of the compensation to the other party to the transaction.

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members involved in all aspects of the real estate industry.


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