How is the commission handled if a licensee changes brokers before closing a transaction?

When a licensee changes brokers before closing a transaction, the commission is typically handled through a process where the original broker pays the new broker, who then distributes the payment to the licensee. This arrangement acknowledges the work that both the original broker and the new broker have contributed. The original broker is still entitled to the commission since they procured the transaction, and the new broker ensures that the licensee receives their rightful earnings by passing the commission through them.

This process maintains the integrity of the agreements made before the change of brokers, as it ensures that all parties involved are compensated appropriately while adhering to industry practices and regulations. It's important to note that any specific agreements or contractual obligations that were established before the licensee's change may also play a significant role in determining how the commission is ultimately handled.