What is required regarding the sharing of commissions with unlicensed persons in a real estate transaction?

In real estate transactions, the sharing of commissions with unlicensed persons is considered unlawful. This regulation exists primarily to ensure that real estate transactions are conducted by individuals who possess the necessary training and licensure to navigate the complexities of the industry.

Licensing requirements are in place to protect consumers and maintain the integrity of the real estate profession. Allowing unlicensed individuals to receive commissions could lead to situations where consumers are not receiving professional guidance or might be vulnerable to unethical practices.

The prohibition against sharing commissions with unlicensed persons helps to uphold standards in the industry, ensuring that only those qualified and licensed to practice real estate are incentivized financially, which in turn protects both the agents and the consumers involved in transactions.