§ 25527 Broker Commission Payment Rules

• •The board can decide to pay a commission to a real estate broker who helps get a proposal for selling or renting property.
• •The commission amount must be clearly stated in the board's resolution before any deal is made.
• •The broker's name and the commission amount must be included in the final accepted proposal or bid.
• •The commission can only be paid using the money earned from selling or renting the property.

A school board wants to sell an old school building. They hire a real estate broker to find buyers.

The board must first agree in writing to pay the broker a commission, like 3% of the sale price. When someone makes an offer to buy the building, the offer must include the broker's name and the 3% commission. If the sale goes through, the broker gets paid from the money the board earns from selling the building.