New Hampshire Revised Statutes 331-A:16-b – Commission Payments to Unlicensed Entities
Current as of: 2023 | Check for updates
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I. A principal broker may pay all or part of a fee, commission, or other compensation earned by his or her firm, broker, associate broker, or salesperson to a partnership, association, limited liability company, limited liability partnership, or corporation only if all of the following conditions are satisfied:
(a) All of the partners, members, officers, or shareholders of any unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, hold a valid and active license issued under this chapter.
(b) At least one of the partners, members, officers, or shareholders of the unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, is the licensee who earned the fee, commission, or other compensation.
(c) The partnership, association, limited liability company, limited liability partnership, or corporation does not engage in any of the prohibited acts specified in N.H. Rev. Stat. § 331-A:26 and the partnership, association limited liability company, limited liability partnership, or corporation is registered to do business in New Hampshire.
(d) The broker keeps a record of all of the following information for each transaction, for a period of 3 years after the date of the transaction:
(1) The name of the licensee who earned the fee, commission, or other compensation;
(2) The amount of the fee, commission, or other compensation that was earned;
(3) The name of the partnership, association, limited liability company, limited liability partnership, or corporation to which the broker paid the licensee’s fee, commission, or other compensation.
II. Compliance with this section does not relieve a broker of any obligations to supervise a licensee, or of any other requirements of this chapter or rules adopted pursuant to this chapter.
III. Compliance with this section does not render a broker or licensee exempt from any portion of the chapter, or immune from liability in a regulatory action against the broker or licensee for a violation of this chapter or rules adopted pursuant to this chapter.
(a) All of the partners, members, officers, or shareholders of any unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, hold a valid and active license issued under this chapter.
Terms Used In New Hampshire Revised Statutes 331-A:16-b
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(b) At least one of the partners, members, officers, or shareholders of the unlicensed business entity, including a partnership, association, limited liability company, limited liability partnership, or corporation, is the licensee who earned the fee, commission, or other compensation.
(c) The partnership, association, limited liability company, limited liability partnership, or corporation does not engage in any of the prohibited acts specified in N.H. Rev. Stat. § 331-A:26 and the partnership, association limited liability company, limited liability partnership, or corporation is registered to do business in New Hampshire.
(d) The broker keeps a record of all of the following information for each transaction, for a period of 3 years after the date of the transaction:
(1) The name of the licensee who earned the fee, commission, or other compensation;
(2) The amount of the fee, commission, or other compensation that was earned;
(3) The name of the partnership, association, limited liability company, limited liability partnership, or corporation to which the broker paid the licensee’s fee, commission, or other compensation.
II. Compliance with this section does not relieve a broker of any obligations to supervise a licensee, or of any other requirements of this chapter or rules adopted pursuant to this chapter.
III. Compliance with this section does not render a broker or licensee exempt from any portion of the chapter, or immune from liability in a regulatory action against the broker or licensee for a violation of this chapter or rules adopted pursuant to this chapter.