agency

cooperating broker

A cooperating broker is a broker from a different firm who helps complete a sale of another broker's listing, usually by bringing the buyer. The cooperating broker may represent the buyer or, less commonly, act as a subagent of the seller. Any compensation shared between brokers is negotiable and must be agreed upon; post-settlement practice limits how offers of compensation are communicated through the MLS.

Exam tip: Ask whom the cooperating broker represents. Working with the buyer does not automatically mean representing the buyer; it depends on the agency agreement.
Example: A buyer's broker from ABC Realty brings a buyer to an XYZ Realty listing, and ABC acts as the cooperating broker in the transaction.

1. A listing brokerage pays half of its commission to the cooperating brokerage that procured the buyer. Under RESPA, this payment is:

Answer & explanation

Answer: D. RESPA expressly exempts fee divisions under cooperative brokerage and referral arrangements between real estate brokers and agents. The exemption does not extend to payments from title, lender, or other settlement service providers to brokers.

Related terms & state variants

buyer broker compensation commission split multiple listing service subagent

Sources

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

Last verified: 2026-10-23