When must a real estate salesperson be licensed to receive a commission?

A real estate salesperson must be licensed at the time of the transaction to legally receive a commission for their services. This requirement ensures that the salesperson is recognized as a qualified professional by the state and can engage in real estate activities, including handling negotiations and legal documentation associated with property transactions. Being licensed at the time of the transaction provides the necessary legal authority to conduct real estate business and be compensated for it.

Receiving a commission without being licensed at the correct time could lead to legal ramifications for both the salesperson and the broker, as it violates state real estate laws. This regulation is in place to protect consumers and ensure that all real estate activities are conducted by individuals who meet the necessary qualifications and standards.