District of Columbia (DC) Real Estate Commission Practice Test 2025 - Free Real Estate Exam Practice Questions and Study Guide

Question: 1 / 400

Before a colleague can compensate Jared for assisting in a complex transaction, what must Jared obtain?

Jared has to determine his broker's split.

Jared has to get approval from the real estate commission.

Jared has to get authorization from his broker.

To receive compensation for assisting in a complex transaction, it is essential for Jared to obtain authorization from his broker. This is a critical step as brokers are responsible for overseeing their agents and ensuring compliance with state regulations and company policies. In real estate transactions, agents often work under a broker's license, and any compensation flowing to an agent must be channeled through their broker.

Obtaining this authorization helps protect the interests of all parties involved, ensuring that any commission payments are legal and properly documented. It also maintains the integrity of the broker's business model, which is designed to manage and oversee the activities of their agents effectively.

In many jurisdictions, including the District of Columbia, brokers must be involved in all commissions paid to their agents, reinforcing the chain of authority and responsibility in real estate transactions. This requirement helps maintain professional standards within the industry.

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The colleague has to get approval from the real estate commission.

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