A Brokerage May Pay an Agent an Earned Commission Even if the Agent is No Longer Licensed with the Brokerage
FACTS: Broker “A’s” agent transferred to a new broker “B.” At the time that the agent transferred, the agent had earned a commission with Broker “A” on a pending transaction.
ISSUE: May Broker “A” pay the commission to the agent at close of escrow of the pending transaction?
ANSWER: Yes.
DISCUSSION:
Pursuant to the Arizona Department of Real Estate Substantive Policy Statement No. 2005.08: “[w]hen a real estate licensee has rightfully earned a commission while in the employ of a broker, and in accordance with their agreement, that broker may pay the licensee, even though the licensee may have left the employ of that broker.”