Under what circumstance can a real estate commission be shared with another broker?

The sharing of a real estate commission between brokers typically requires a signed agreement between the parties involved. This agreement outlines the terms under which the commission will be divided, ensuring that both brokers are in agreement about the distribution of financial compensation from a completed transaction. This practice is common in real estate transactions where cooperation between brokers is essential for the successful closing of a sale, often illustrated through multiple listing services (MLS) where commissions are shared.

In most cases, a signed agreement is a legal and ethical requirement that protects the interests of all parties involved, including the sellers and buyers. It clarifies the expectations and responsibilities of each broker, fostering transparency in the commission-sharing process. Thus, having an official, documented agreement is crucial in establishing clear communication and terms between the brokers, making this the correct answer.