agency

broker

A broker is a person licensed to perform real estate services for others for compensation, such as listing, selling, leasing, or negotiating property. A broker may operate a brokerage and supervise salespersons and associate brokers. Listing and buyer agreements are generally contracts with the broker, not the individual salesperson, and only the broker can usually receive commissions directly from clients. Licensing requirements vary by state.

Exam tip: The agency contract is with the broker; salespersons act on the broker's behalf and get paid only through their sponsoring broker.
Example: When a salesperson's listing sells, the commission is paid to her broker, who then pays the salesperson her split.

1. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Answer & explanation

Answer: D. In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Related terms & state variants

associate broker commission split salesperson sponsoring broker

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23