A. A broker shall employ and pay only active licensees, and a licensee shall accept employment and compensation as a licensee only from either or both of the following:
1. The legally licensed broker to whom the licensee is licensed.
2. An employer other than the legally licensed broker as described in paragraph 1 of this subsection if the all of the following apply:
(a)The employer holds a license.
(b)The licensee is the employer's employee and receives a federal form W-2 wage and tax statement.
(c)The employer has the same employing broker as the licensee.
(d)The employer obtains written permission from the employing broker to pay the licensee.
B. If the licensee is licensed through a professional corporation or a professional limited liability company, the employing broker ma
Free access — add to your briefcase to read the full text and ask questions with AI
A. A broker shall employ and pay only active licensees, and a licensee shall accept employment and compensation as a licensee only from either or both of the following:
1. The legally licensed broker to whom the licensee is licensed.
2. An employer other than the legally licensed broker as described in paragraph 1 of this subsection if the all of the following apply:
(a) The employer holds a license.
(b) The licensee is the employer's employee and receives a federal form W-2 wage and tax statement.
(c) The employer has the same employing broker as the licensee.
(d) The employer obtains written permission from the employing broker to pay the licensee.
B. If the licensee is licensed through a professional corporation or a professional limited liability company, the employing broker may pay and the licensee may receive compensation only through the licensed professional corporation of which the licensee is an officer and shareholder or the licensed professional limited liability company of which the licensee is a member or manager.
C. It is unlawful for a person, firm or corporation, whether anobligor, escrow holder or otherwise, to pay or deliver to anyone compensation for performing any of the acts specified by this chapter, as a broker, who is not licensed at the time the service is rendered. An identification card or certificate of license issued by the state real estate department showing that the person, firm or corporation holds a license for the year in which the payment is made or earned is sufficient proof to relieve from any penalty for a violation of this section the obligor, escrow holder or other person who relied in good faith on the card or certificate.
D. A real estate broker or real estate salesperson shall not collect compensation for rendering services in negotiating loans secured by real property unless all of the following apply:
1. The broker or salesperson is licensed pursuant to title 6, chapter 9 or is an employee, officer or partner of a corporation or partnership licensed pursuant to title 6, chapter 9.
2. The broker or salesperson has disclosed to the person from whom the compensation is collected that the broker or salesperson is receiving compensation both for real estate brokerage, when applicable, and for mortgage broker services.
3. The compensation does not violate any other state or federal law.
E. Notwithstanding subsection A or B of this section, brokers licensed under this chapter may employ residential leasing agents or managers of residential rental properties, as prescribed by section 32-2121, subsection A, paragraph 6. The exemption of residential leasing agents or managers of residential rental property under article 2 of this chapter does not exempt the designated broker from the responsibility to exercise reasonable supervision over these leasing agents or managers.