Oregon Broker PSI Practice Exam

Who can receive a commission from a principal broker?

1. A real estate employee only

2. A real estate agent previously employed

3. Any unlicensed individual

4. A seller of the property

The correct answer is: A real estate agent previously employed

A real estate agent previously employed by the principal broker is the correct answer because commissions in real estate typically flow from the principal broker's transactions to agents who are currently affiliated with them or have been affiliated in the past, provided their agreements allow for it. In most states, a principal broker is responsible for all the actions conducted under their license, including the distribution of commissions to agents who have actively contributed to a sale or transaction. Real estate agents who have previously been employed by the principal broker may still be entitled to commissions if the transaction they contributed to goes through after their employment ends, depending on state regulations and specific contractual agreements. In contrast, a real estate employee only would typically be one currently employed and working under an active agreement with the principal broker, which may not extend to previously employed agents. An unlicensed individual cannot receive a commission, as it is reserved for individuals authorized to represent clients and handle transactions. Lastly, while a seller of the property may receive proceeds from a sale, they are not entitled to a commission from the principal broker; rather, commissions are paid to agents involved in facilitating the sale.