An escrow company may disburse commissions directly to a broker's salesperson if the:

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The correct choice is based on the fundamental practice within real estate transactions where commission payments are typically managed by the broker. An escrow company can disburse commissions directly to a broker's salesperson only when the escrow officer has received the necessary written authorization from the broker for each specific transaction.

This requirement ensures that the broker maintains oversight and control over the distribution of funds related to sales transactions, aligning with ethical and legal practices in real estate. By obtaining written authorization for each transaction, the escrow company not only safeguards against any misunderstandings or disputes but also acknowledges the broker's role as the principal who supervises the activities of the salesperson. This process reinforces the fiduciary responsibilities inherent in the broker-salesperson relationship.

Other potential options, such as involving inactive licenses, the status of the escrow agent as a licensed broker, or an annual authorization, do not provide the same level of transaction-specific accountability and oversight required in real estate dealings. Each transaction represents a unique agreement between the involved parties, and therefore, a one-time or yearly authorization would not suffice in ensuring all parties are in agreement for specific commission payments.

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