Can a Broker pay commission to another Broker?

A broker can indeed pay a commission to another broker, which serves as a standard practice within the real estate industry. This arrangement allows for collaboration and cooperation between brokers, particularly when they are involved in a transaction that benefits from the involvement of multiple agents. Such cooperation is often formalized through cooperative agreements or brokerage relationships where commissions are shared.

This practice enhances the ability of brokers to expand their networks and leverage one another’s expertise and clientele. It also helps ensure that all parties involved in the transaction are compensated fairly for their contributions. Commission-sharing between brokers is facilitated as long as both are legally licensed and comply with relevant laws and regulations governing real estate transactions.