*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS^® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

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.  

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!