From whom does a sales associate receive compensation?

A sales associate receives compensation only from their broker because the broker holds the license and is legally responsible for the actions of the sales associate. This structure ensures that all transactions are conducted under the broker's supervision, maintaining compliance with regulatory standards. The broker typically retains a portion of the commission from real estate transactions, which is then disbursed to the sales associate as part of their agreed-upon compensation plan.

Receiving payments directly from clients or multiple brokers is generally not permitted, as it complicates the financial relationship and could lead to conflicts of interest or regulatory issues. Allowing a sales associate to receive compensation from a closing agent would also not align with the standard practices in real estate transactions, where the broker acts as the intermediary for all financial dealings. Thus, compensation through the broker is the established and lawful process.