FACTS:        

The agent left the brokerage firm to join a new firm.  Pursuant to the independent contractor agreement (ICA) with the original brokerage, the agent would receive a portion of the commission upon the close of escrow.  The agent has insisted that the commission(s) be sent directly to him rather than to his new broker. 

ISSUE:                      

May the broker send the commission directly to the agent now that he is licensed at a different brokerage firm?

ANSWER:                

Yes.

DISCUSSION:         

Substantive Policy Statement No. 2005.08 provides that “[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.”