Alabama License Law

A salesperson who collects a commission directly from a buyer, bypassing their broker, has:

AActed within AREC guidelines if both parties consent
BViolated Alabama license law✓ Correct
CEstablished an independent business relationship with the buyer
DNo liability as long as the amount is under $5,000

Explanation

Alabama law requires that all compensation flow through the employing broker. A salesperson who collects compensation directly from any party is in violation of Alabama license law.

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