Is compensation to an unlicensed assistant contingent on a sale being completed permissible?

• A. Yes
• B. Only if supervised
• C. Only if under license
• D. No

Answer: (D)

In Washington, compensation for real estate services that require a license must go to a licensed professional. An unlicensed assistant may not receive a commission or any pay that is contingent on the closing of a sale. That kind of contingent payment is essentially a commission for a real estate transaction, which must be earned by licensed individuals. Supervising or being “under license” does not make this permissible. An unlicensed assistant can be paid a straight salary or hourly wage for non-licensed, administrative tasks, but not based on a sale’s completion. That’s why compensation contingent on a sale is not allowed for an unlicensed assistant.