Can a North Carolina broker pay or "split" a brokerage commission with a real estate broker who is licensed in a state other than North Carolina but who is not licensed in North Carolina?

The Licensing Board does not object to a North Carolina broker cooperating in a real estate transaction with a broker duly licensed in another state and splitting commissions on any agreeable basis provided each broker engages in any particular transaction within the borders of his own state and does not cross the state line of his cooperating broker insofar as the real estate transaction is concerned.

The Board offers the following suggestions for brokers involved in such arrangements:

1. To avoid the possibility of future misunderstanding, agreements to cooperate with out-of-state brokers should be reduced to writing at the earliest possible time.

2. Splitting of brokerage commissions with out-of-state brokers is strictly prohibited if the broker has entered North Carolina and performed acts or services which require a North Carolina real estate license (eg., showing listed properties, negotiating or discussing terms of sale, soliciting offers, etc.).

3. Salesmen can neither pay commissions to nor receive commissions from any person except the licensed broker by whom he is employed.

4. Contact the proper rea I estate licensing officials in your cooperating broker's state for their comments and views regarding such cooperative brokerage arrangements