§ 12-10-410 — Compensation

(1) In any real estate transaction, the broker's
compensation may be paid by the seller, the buyer, the landlord, the tenant, a third
party, or by the sharing or splitting of a commission or compensation between
brokers.

(2) Payment of compensation shall not be construed to establish an agency
relationship between the broker and the party who paid the compensation.

(3) A seller or landlord may agree that a transaction-broker or single agent
may share the commission or other compensation paid by the seller or landlord with
another broker.

(4) A buyer or tenant may agree that a single agent or transaction-broker
may share the commission or other compensation paid by the buyer or tenant with
another broker.

(5) A buyer's or tenant's agent shall obtain the written approval of the buyer
or tenant before the agent may propose to the seller's or landlord's agent that the
buyer's or tenant's agent be compensated by sharing compensation paid by the
seller or landlord.

(6) Prior to entering into a brokerage or listing agreement or a contract to
buy, sell, or lease, the identity of those parties, persons, or entities paying
compensation or commissions to any broker shall be disclosed to the parties to the
transaction.

(7) A broker may be compensated by more than one party for services in a
transaction if those parties have consented in writing to such multiple payments
prior to entering into a contract to buy, sell, or lease.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 655, � 1, effective October 1.