Texas Real Estate Sales Agent ExamAgencyEasy
A real estate sales agent receives a commission check directly from a buyer for a transaction they facilitated. The agent is licensed under a broker. What is the appropriate action for the sales agent to take with this commission check?
- ADeposit the check directly into their personal bank account.
- BDeposit the check directly into their business operating account.
- CTurn the check over to their sponsoring broker for proper disbursement.
- DHold the check until the end of the month, then submit it to the broker with a summary report.
Show answer & explanationAnswer & explanation
Correct answer: C. Turn the check over to their sponsoring broker for proper disbursement.
In Texas, a sales agent may only receive compensation in the name of and through their sponsoring broker. It is illegal for a sales agent to accept a commission directly from a client or customer and deposit it into their own account.
Why the other options are wrong
- A. This is illegal and a violation of TREC rules.
- B. This is illegal and a violation of TREC rules, as commissions must go through the broker.
- D. Holding the check doesn't negate the requirement to submit it to the broker for proper handling.
Commission Disbursement (Sales Agent)
The legal requirement that a real estate sales agent in Texas must receive all compensation for brokerage services through their sponsoring broker, not directly from clients or customers.
- Sales agents cannot receive direct payments from clients.
- All commissions must be paid to the sponsoring broker.
- Broker then disburses the agent's share.
Memory trick: Money flows through the broker's office, never directly to the agent's pocket.