Arizona Real Estate Broker Exam — All Questions

May an Arizona broker share a commission with a broker licensed only in another state?

• a.Yes, but only if the Department approves the split in advance
• b.Yes, an Arizona broker may pay and receive compensation from an out-of-state broker✓
• c.Yes, but only if the out-of-state broker obtains an Arizona licence
• d.No, compensation may pass only between Arizona licensees

A.R.S. 32-2163(A) forbids an Arizona broker to employ or compensate an unlicensed person for licensed acts, 'except that a licensed broker in this state may pay compensation to and receive compensation from a broker who is lawfully operating in another state.' Subsection B is the limit: paying that compensation 'does not allow an out-of-state broker to conduct activity in this state that would otherwise require a broker's license,' which is what the written cooperation agreement in subsection C is for.

A cooperating brokerage's salesperson helps sell a listing. Who may the listing broker pay?

• a.The escrow agent, who then pays the salesperson
• b.The cooperating salesperson directly, at closing
• c.Either the salesperson or the broker, as they agree
• d.The cooperating brokerage's employing broker✓

A.R.S. 32-2155(A) confines a licensee to accepting compensation from the broker to whom the licensee is licensed, so a cooperative commission must travel broker to broker and then down to the salesperson within that firm. Subsection C makes it unlawful for anyone, including an escrow holder, to route payment for licensed acts outside that channel. A.A.C. R4-28-701 separately requires written disclosure of every employing broker being compensated at least three calendar days before closing.