What is a primary duty of real estate brokers regarding commission?

The primary duty of real estate brokers regarding commission is to ensure that the fees belong to the broker. This relates to the broker's responsibility to establish a clear understanding of how commissions are determined and distributed. When brokers enter into agreements with clients, they must articulate the terms under which they will earn their commissions. This includes making sure that the agreed-upon fees are properly documented, transparent, and understood by all parties involved in the transaction.

Brokers must also adhere to legal and ethical standards, ensuring that commission arrangements comply with state regulations and the National Association of Realtors' Code of Ethics. This responsibility is crucial for maintaining trust and professionalism in the real estate industry.

In contrast, keeping commission fees a secret would violate transparency expectations, and receiving all fees from clients does not accurately describe the broker's role, as they typically share commissions with cooperating brokers. Negotiating fees with clients can be part of the process, but the fundamental duty focuses more on the rightful ownership and disclosure of those fees by the broker.