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This entry was published on 2014-12-26
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SECTION 442
Splitting commissions
Real Property (RPP) CHAPTER 50, ARTICLE 12-A
§ 442. Splitting commissions. 1. No real estate broker shall pay any
part of a fee, commission or other compensation received by the broker
to any person for any service, help or aid rendered in any place in
which this article is applicable, by such person to the broker in
buying, selling, exchanging, leasing, renting or negotiating a loan upon
any real estate including the resale of a condominium or cooperative
apartment unless such a person be a duly licensed real estate salesman
regularly associated with such broker or a duly licensed real estate
broker or a person regularly engaged in the real estate brokerage
business in a state outside of New York; provided, however, that
notwithstanding any other provision of this section, it shall be
permissible for a real estate broker to pay any part of a fee,
commission, or other compensation received to an unlicensed corporation
or an unlicensed limited liability company if each of its shareholders
or members, respectively, is associated as an individual with the broker
as a duly licensed associate broker or salesman.

2. Furthermore, notwithstanding any other provision of law, it shall
be permissible for a broker properly registered pursuant to the
provisions of article twenty-three-A of the general business law who
earns a commission on the original sale of a cooperative or homeowners
association interest in real estate, including condominium units to pay
any part of a fee, commission or other compensation received for
bringing about such sale to a person whose principal business is not the
sale or offering of cooperatives or homeowners association interests in
real property, including condominium units in this state but who is
either: (i) a real estate salesman duly licensed under this article who
is regularly associated with such broker; (ii) a broker duly licensed
under this article; or a person regularly engaged in the real estate
brokerage business in a state outside of New York.

Except when permitted pursuant to the foregoing provisions of this
section no real estate broker shall pay or agree to pay any part of a
fee, commission, or other compensation received by the broker, or due,
or to become due to the broker to any person, firm or corporation who or
which is or is to be a party to the transaction in which such fee,
commission or other compensation shall be or become due to the broker;
provided, however, that nothing in this section shall prohibit a real
estate broker from offering any part of a fee, commission, or other
compensation received by the broker to the seller, buyer, landlord or
tenant who is buying, selling, exchanging, leasing, renting or
negotiating a loan upon any real estate including the resale of a
condominium or cooperative apartment. Such fee, commission, or other
compensation must not be made to the seller, buyer, landlord or tenant
for performing any activity requiring a license under this article.