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Committee flags possible enforcement risks with third‑party showing services and direct‑to‑agent payments
Summary
Members told the committee that third‑party showing services and direct payments to agents can create compliance problems if compensation bypasses sponsoring brokers; staff said compensation generally must flow through the broker unless permission is given and that noncompliance can be the basis for complaints.
Committee members raised concerns about third‑party showing services that pay agents directly and whether those arrangements create unregulated compensation or a form of sub‑agency.
Staff confirmed that, under current rules, compensation generally must flow through a sponsoring broker unless the broker has provided permission otherwise; a member said if a broker’s agent receives payment outside the brokerage that is not disclosed, it could form the basis for a complaint to TRE. Members urged brokers to adopt formal policies to authorize or prohibit third‑party showing services and to ensure payment and disclosure flows are handled through brokerage procedures.
The advisory group did not adopt a regulatory change; instead members recommended education for brokers about written authorization for showing services and the potential need to file complaints where rules are violated.
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