Section 442. Splitting commissions  


Latest version.
  • 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 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.
        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 prinicipal  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.