When a principal broker has her license suspended for two years the effect on the affiliated associate brokers and salespeople is that?

May I pay a referral fee to an unlicensed person? No. Referral fees may only be paid to persons licensed under the Nebraska Real Estate License Act, or to a nonresident licensed in his or her regulatory jurisdiction. Referral fees must be paid by the designated broker to a designated broker and not by an affiliated licensee to another affiliated licensee. Please review the following section of the license act:

Neb. Rev. Stat. §81-885.06. Action for recovery of compensation; prohibited, except to licensed brokers, associate brokers, or salespersons.

No action or suit shall be instituted, nor recovery be had, in any court of this state by any person for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the Nebraska Real Estate License Act to other than licensed brokers, licensed associate brokers, or licensed salespersons. A licensed broker may bring an action in the name of a partnership, limited liability company, or corporation if the broker operates under any of such business organizations.

Can the Commission call my broker and get my commission check corrected (or paid)? No. The Real Estate Commission is prohibited by rule to enter into disputes between licensees over payment or division of commission. Payment of commissions between licensees is a matter of contract law, not license law. Such issues are generally controlled by company policies and employment or independent contractor agreements between the licensees. If disputes arise and cannot be resolved by direct negotiations, licensees must resort to arbitration or the courts for settlement.

Can I file a complaint with the Commission against another company in order to collect my share of a commission?
No. The Real Estate Commission is prohibited by rule to enter into disputes between licensees over payment or division of commission. Payment of commissions between licensees is a matter of contract law, not license law. Such issues are generally controlled by company policies and employment or independent contractor agreements between the licensees. If disputes arise and cannot be resolved by direct negotiations, licensees must resort to arbitration or the courts for settlement.

Licensees Dealing in their Own Property

May I sell my house without paying my broker a commission?
Although this may be addressed in your Independent Contractor Agreement, generally if you are the seller and you are selling your own home, and it is not listed with your designated broker’s real estate company, then you would not be liable to your broker for the payment of a commission. You should disclose to your broker in writing your intention to sell, buy, lease, or exchange property for your own account. Whether you pay a commission under such circumstances depends on what agreement you reach with your broker.

Do I have to identify myself as an agent to sell or rent my own property?
Yes. The Rules and Regulations of the Commission require that licensees disclose in all forms of advertisements, the interest the licensee has in the property. The disclosure could read "Seller/Owner is a licensed broker (or salesperson) in the State of Nebraska” or similar type disclosures.

Since I am an independent contractor, may I do my own advertising?
No. The Rules and Regulations of the Commission requires affiliated licensees to advertise under the name of the broker or the name under which he or she does business in the State of Nebraska as registered with the Secretary of State’s Office and recorded with the Commission.

Are addresses required on "For Sale" signs?
No, addresses and/or phone numbers are not required by license law or rule or regulation. However, licensees should check to see if this requirement is a business policy adopted by their designated broker. What is, absolutely, required is that advertising include the name under which the broker is doing business.

Open Houses

I am holding an open house in a new subdivision. May I give a door prize or free gift to each and every prospective purchaser that attends?
Yes. In October 1996, the Commission’s rule pertaining to the prohibition of offering inducements was repealed. Licensees should be careful to treat every prospective purchaser the same so that there is no basis for claims of discrimination. Licensees may NOT give consideration to anyone for referring prospects to the agent, this woudl be considered paying a referral fee to an unlicensed person and is a violation of the License Law. Also, licensees may wish to contact the State Department of Revenue to ensure they are not conducting a lottery when offering inducements.

May we hire unlicensed hostesses to sit in open houses and pass out brochures with information on the houses?
No. Open houses must be hosted by a person who possesses an active Nebraska real estate license. Below is a part of the Commission’s Policies and Interpretations section which can also be found on our website.
Activities which cannot be performed by unlicensed persons who, for example, act as personal assistants, clerical support staff, closing secretaries, etc., include, but are not necessarily limited to: 1. Host open houses, kiosks, home show booths or fairs, or hand out materials at such functions. 2. Show property. 3. Answer any questions on listings, title, financing, closing, etc. 4. Discuss or explain a contract, agreement, listing, or other real estate document with anyone outside the firm. 5. Be paid on the basis of real estate activity, such as a percentage of commission, or any amount based on listings, sales, etc.
6. Negotiate or agree to any commission, commission split or referral fee on behalf of a licensee.

May I tell a purchaser that I will represent him or her instead of the seller?
Licensees must first check with their designated broker to ensure that the designated broker offers limited Buyer Agency in their Designated Broker Agency Policy. If so, then in cases where the firm exercises the appointment of agents option in the law and the licensee is not identified in the listing contract as an agent for the seller, then the agent must necessarily serve as a buyer's agent. If the buyer has entered into a written exclusive agency agreement with a different buyer's agent, then this licensee has no role and should direct the buyer back to his/her exclusive buyer's agent.

Should offers be changed by the listing agent when essentials are left out of the offer by a selling agent?
Changes to a contract may be made by the listing broker with the consent and approval of the seller(s). This, in essence, is a Counter-Offer to the buyer(s). Any changes in the contract should be initialed and dated by the seller(s). The buyer(s) may make additional changes to this contract thus countering back to the seller(s). As in the previous illustration the buyer(s) should initial and date. This process goes back and forth until the contract is no longer amended and is acceptable to all parties.

How long can I keep earnest money before I take it to the office?
The best business practice is immediately. However, the license law requires that earnest money be deposited into the broker’s trust account within 72 hours or before the end of the next banking day, after an offer is accepted, in writing, unless other wise provided in the purchase agreement.

How should a broker disburse earnest money that the buyer (or seller) is demanding?
If there is a dispute over the return of any earnest money, the licensee must obtain the written consent of all parties having an interest in the funds authorizing the broker what to do with the earnest money. Without the written consent, the broker must hold the earnest money in the trust account until one of the parties to the transaction files a civil action against the other party, in which case, the broker may then pay the earnest money to the Court.

Doing Business in Another State

May I give gifts to clients and customers who do business with me?
Licensees may give gifts to persons to entice the person to do business with the licensee. However, giving any form of compensation or consideration to a person after they have done business with the licensee may be considered paying a commission to an unlicensed person.

May I pay a fee or give a gift to a person who refers a prospect to me?
Only if the person has a real estate license on active status, in Nebraska or his or her state of residence, in which case, the gift must be given by the employing broker to the person’s employing broker, who in turn would give the gift to the person who made the referral. IF the person who made the referral does not possess a real estate license, this giving of any form of compensation or consideration would be considered paying a commission to an unlicensed person. This would be a violation of the License Act for the licensee and the unlicensed person who accepts such a consideration would be guilty of conducting licensed activity without a license and he/she would be guilty of a Class III misdemeanor.