Table Funding: Broker/Agent Fees
Recently a memo was released by an Assistant Attorney General with the Alabama Real Estate Commission. The memo was circulated to the Real Property and Probate Section of the Alabama State Bar in order to better protect attorneys and their clients. The memo confirms that it is a violation of real estate license law for a real estate agent who is a salesperson or associate broker to accept a commission or other valuable consideration for performing any act for which a license is required from any person except his or her qualifying broker.
Certain strategies of late have developed where real estate agents present invoices to pay them at closing or table funding to avoid the funds going through their broker. One check should go to the broker, and the real estate agent should receive their compensation from the broker.
Please see Table Funding Letter from Alabama Real Estate Commission.
