In a team where Licensee A is the agent on a purchase and sale agreement, but Licensee B negotiated the transaction, which is true about commissions?

Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

In a team where Licensee A is the agent on a purchase and sale agreement, but Licensee B negotiated the transaction, which is true about commissions?

Explanation:
In Washington, commissions go to the brokerage, and then the sponsoring broker distributes the funds to licensees according to the firm’s internal splits and any team agreement. Even if Licensee A is the agent named on the purchase and sale agreement, the payment of the commission to licensees is handled by the brokerage. If Licensee B did the negotiating and earned a portion of the deal’s value, that portion is owed to them by the brokerage, not paid directly by the seller or buyer. So the idea is that Licensee B must receive payment (if any) from the brokerage, reflecting the broker’s responsibility to compensate licensees for their work. The other options don’t fit as universally true statements: while the seller’s side often provides the commission to the brokerage, the actual distribution to licensees depends on internal splits, and there’s no guarantee both licensees would be paid equally unless the firm or team agreement specifies that.

In Washington, commissions go to the brokerage, and then the sponsoring broker distributes the funds to licensees according to the firm’s internal splits and any team agreement. Even if Licensee A is the agent named on the purchase and sale agreement, the payment of the commission to licensees is handled by the brokerage. If Licensee B did the negotiating and earned a portion of the deal’s value, that portion is owed to them by the brokerage, not paid directly by the seller or buyer. So the idea is that Licensee B must receive payment (if any) from the brokerage, reflecting the broker’s responsibility to compensate licensees for their work.

The other options don’t fit as universally true statements: while the seller’s side often provides the commission to the brokerage, the actual distribution to licensees depends on internal splits, and there’s no guarantee both licensees would be paid equally unless the firm or team agreement specifies that.

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