Who Can a Real Estate Agent Be Paid By?
Short Answer: A sales associate or broker associate can only collect money in connection with a real estate transaction in the name of their registered employer and with the employer’s express consent. A sales associate also cannot sue a buyer or seller for commission. Only the broker can pursue commission from the public.
If you are a sales associate or broker associate, you are not the business.
Your broker is the business.
That is why Florida law is very direct about compensation.
A sales associate may not collect any money in connection with a real estate transaction, whether as a commission, deposit, payment, rental, or otherwise, except in the name of the employer and with the employer’s express consent.
A sales associate also cannot file an action for commission or compensation against anyone other than the registered employer.
Who the Client Actually Owes Commission To
Commission agreements are between the public and the brokerage.
For example, a standard commission agreement is written so the seller or landlord agrees to pay the broker, not the individual agent. citeCommission Agreement.pdf
That is the structure.
The broker earns the commission under the brokerage agreement.
Then the broker pays the agent according to the independent contractor agreement.
Who Can Pay You
You can be paid by your broker of record.
That is the only clean answer.
In Florida, any money connected to the transaction must be collected in the name of your employer and with express consent.
So when you think “who can pay me,” think:
Your broker pays you.
What Does Not Count as Being Paid Correctly
These are common mistakes agents make:
A buyer writes a check directly to the agent.
A seller Venmos the agent a “bonus.”
A vendor pays the agent a referral fee directly for sending business.
A title company is asked to pay an agent directly without the broker’s authorization.
Those are all problems because they are money connected to a real estate transaction that is not being handled in the name of the employer and with express consent.
These are acceptable structures:
The closing agent disburses commission to the brokerage, then the brokerage pays the agent.
The closing agent disburses funds as instructed by the brokerage in the name of the brokerage, with the brokerage’s express consent.
The key is always the same.
It must be in the name of the employer and with the employer’s express consent.
If you are a sales associate or broker associate, you do not get paid by the public.
You get paid by your broker.
If money is coming from anywhere else, it must still be handled in the name of your employer and with your employer’s express consent.
If a commission dispute happens with a seller, you do not sue the seller. Your broker does.[