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NY · NYS DOS

RPL 442 — Splitting Commissions

N.Y. Real Property Law § 442 (Art. 12-A)

Bars a real estate broker from paying any part of a fee, commission, or other compensation received for help in a real estate transaction to anyone who is not a duly licensed salesperson regularly associated with that broker, a duly licensed broker, or a person regularly engaged in the real estate brokerage business in another state. A broker may pay compensation to a party to the transaction (seller, buyer, landlord, or tenant) but not for performing any activity requiring a license under Article 12-A, and may pay an unlicensed corporation or LLC only where each shareholder or member is, as an individual, a duly licensed associate broker or salesperson associated with the broker.

Status · active
Subject · brokerage licensing

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real estate brokerreal estate salesperson

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RPL 442 — Splitting Commissions · NY · RegWatch