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Q: An agent recently transferred a license to my brokerage firm. The agent has a closing scheduled next month for a transaction that was under the old brokerage firm. Can the prior broker pay a commission directly to the agent if the license has already been moved to my firm? 


A: Yes, the previous broker can pay the agent the commission directly for a transaction that occurred while the agent was with the prior broker. 18VAC135-20-280 states that an improper brokerage commission includes, “Accepting a commission, fee, or other valuable consideration, as a real estate salesperson or associate broker, for any real estate services from any person or entity except the licensee’s principal broker or supervising broker at the time of the transaction.” At the time of the transaction means when the purchase contract was ratified. Whoever the broker was when the purchase contract was ratified should pay the commission directly to the agent.  

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