ISSUE:

Can a broker instruct the escrow company to pay the commission directly to the buyer, who is also a licensed real estate agent with that broker, or alternatively, instruct that the commission be applied toward the buyer/agent’s down payment?

ANSWER:

Probably. A.R.S. § 32-2155(A), among other things, requires a licensee to receive commissions only from their broker and also requires a broker to pay commissions only to real estate licensees. However, there are a limited number of exceptions to A.R.S. § 32-2155(A). For instance, if the broker is entitled to the commission, the broker is allowed to assign the commission directly to the agent, and the commission can be paid by the escrow company to the agent at closing. See ADRE Substantive Policy Statement 2005.08.

Arizona REALTOR® Magazine – April 2014 | Commissions