Texas License Law
A Texas real estate broker may NOT pay compensation to a sales agent from another brokerage for referral of a listing or buyer. Instead, the payment must be made to:
AThe sales agent directly for their personal services
BThe other sales agent's sponsoring broker, who then pays the agent✓ Correct
CTREC's escrow account for disbursement
DThe client directly
Explanation
Texas law prohibits paying compensation directly to another brokerage's sales agent. Compensation must be paid to the agent's sponsoring broker, who then compensates the agent per their agreement. This ensures the broker maintains oversight of their agents' activities and that all compensation flows through the appropriate brokerage.
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