Risky business compensation

Real Estate Agent with All Star Home Group 0488515

Ever been offered unlawful compensation?  In Texas all compensation must be paid by ones sponsoring broker, and never directly to the agent.


The Texas Real Estate License Act prohibits an agent to receive payment for a real estate activity directly from anyone other than their broker.


Let’s say a new home builder gives you a $100 give card to show their appreciation for bringing them a buyer.  If the builder is not licensed then they did nothing wrong.  If you accept the gift card you have violated the license act.  Even accepting a gift directly from a seller or buyer would be a violation.


I wonder how many agents think nothing of accepting these items.


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
Lone Star Real Estate Professionals
Dallas Real Estate
All Thing's Texas
Real Estate Law
risky business compensation

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Catherine Ulrey
Keller Williams Realty Portland Premiere - Salem, OR
Equestrian and Acreage Property Specialist

Oregon is the same way.  I have known of sellers paying a bonus to their agent, but the broker "allowed" it.

Jan 13, 2012 11:29 AM #1
Cathy McAlister
Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA
Sacramento DRE#00648507

California.  All seller compensation to buyer's agent must go through buyer's broker.  The seller/listing agent can offer a bonus to a buyer agent - but it cannot go direct.

Jan 13, 2012 11:32 AM #2
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I am thinking that in the rough and tumble world of 2004 and 2005, there was a lot of this going on.  

Jan 13, 2012 05:43 PM #3
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

My policy has always been to uphold both the letter and the spirit of the law. It pays off in the long run. I prefer to live life honestly with integrity and truth on my side. Thanks for sharing and have a wonderful weekend.


Jan 14, 2012 10:01 PM #4
Ed Newman
Alamo Infrared Energy Audits & Building Evaluations - Midvale, UT

Thanks for sharing this great information.  I will be sure and pass it on to others.

Feb 06, 2012 08:33 AM #5
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint

Excellent information I will forward it if that is ok? thank you!!!

Dec 07, 2012 11:27 AM #6
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Richard Weeks

Realtor, Associate Broker
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