Hawaii Broker Practice Exam

Paying commission to a licensed broker of another state is accurate because brokers have the ability to collaborate with out-of-state brokers, provided those brokers hold the necessary licensing in their respective states. This practice facilitates transactions involving properties across state lines and ensures that all parties involved in the transaction are legally compliant.

Commissions typically must be directed only to individuals or entities that are licensed to receive such payments. Since states have specific licensing requirements for brokers and agents, it's essential for a broker to confirm that any broker or agent they wish to compensate for procuring a buyer, seller, or lease is appropriately licensed in their respective state. This not only ensures compliance with real estate regulations but also helps protect the integrity of the transaction process.

In the context of the other options, while paying licensed assistants for administrative tasks is a common practice, it does not directly regard commission payments, which are generally reserved for licensed brokers and agents involved in transaction negotiations. Offering commissions as benefits to clients or paying agents regardless of their licensing would breach ethical and legal practices in real estate.

Ask an Examzify Tutor