Which of the following is a violation of license law regarding commission sharing?

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Sharing a commission with an unlicensed person constitutes a violation of license law because only individuals or entities that hold a valid real estate license are permitted to receive compensation for services rendered in real estate transactions. This law is in place to protect the public and ensure that all parties involved in a real estate transaction are held to professional standards and legal responsibilities. Unlicensed individuals do not have the requisite training or accountability that licensed professionals possess, which could lead to unethical practices or unsatisfactory service.

In contrast, paying a licensed broker in another state is often permissible under reciprocal agreements, while collecting referral fees from a client is allowed as long as proper disclosures are made and the individual is licensed to do so. Likewise, negotiating a commission rate with a client is a standard part of real estate transactions and a right that licensed agents have. Thus, the sharing of commission with unlicensed individuals violates fundamental real estate laws governing licensing and compensation.

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