Sales agents may receive commissions from:

Sales agents may receive commissions from:

• A. Their Sponsoring Broker
• B. The Client
• C. The Lender
• D. The Real Estate Board

Answer: (A)

The payments to sales agents are handled by the sponsoring broker. In normal real estate practice, the seller’s proceeds at closing cover the total commission agreed in the listing, and the sponsoring broker distributes the funds to the agents according to the brokerage agreement. The client (buyer or seller) doesn’t write a direct commission check to the agent, and lenders or the Real Estate Board don’t pay commissions. The sponsor—the broker through whom the agent is licensed—is the entity responsible for paying out the agents’ commissions.

The payments to sales agents are handled by the sponsoring broker. In normal real estate practice, the seller’s proceeds at closing cover the total commission agreed in the listing, and the sponsoring broker distributes the funds to the agents according to the brokerage agreement. The client (buyer or seller) doesn’t write a direct commission check to the agent, and lenders or the Real Estate Board don’t pay commissions. The sponsor—the broker through whom the agent is licensed—is the entity responsible for paying out the agents’ commissions.