“My agents want their commission checks made payable to their business entities…”
May 18, 2023
Q: I am a broker, and some of my agents want their commission checks made payable to their business entities rather than made payable to them as individuals. Is this allowed?
A: The short answer is, “it depends.”
Under DPOR’s regulations, all commissions must be paid to a real estate licensee, and salespersons and associate brokers can only accept commissions from their principal or supervising broker at the time of the transaction. (18VAC 135-20-280.) Therefore, you may pay a commission to an agent’s business entity if the business entity is a licensed real estate entity AND that licensed entity is associated with the broker paying the commission. Brokers may also implement their own stricter policies limiting commission payments to individuals only.
What is the Legal Hotline?
The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).
Here are some tips to help make the Legal Hotline work for you!
You might also like…
Scam Alert: Fake DPOR Email Address
By Santiago Montalvo - June 1, 2023
It is rather unfortunate that we are sending another notice about scams going on in the real estate world. I’m sure everyone reading this feels that fighting against… Read More
“My tenant has stopped paying rent, so their guarantor wants me to file an unlawful detainer…”
By Ryan Leonard - May 31, 2023
Q: I have a tenant who is a college student whose father co-signed the lease as a guarantor. The tenant has stopped paying rent. I spoke with the… Read More
“Is there language for the Loudon County Airport Impact Overlay District Disclosure?”
By Santiago Montalvo - May 23, 2023
Answer: On January 17, 2023, the Loudoun County Board of Supervisors approved the changes to the county’s Comprehensive Plan, Zoning Ordinance, and zoning map. Now there is an… Read More