Okla. Admin. Code § 605:10-7-8.4

Current through Vol. 42, No. 3, October 15, 2024

Section 605:10-7-8.4 - [Effective 11/1/2024] Corporations or Limited Liability Companies formed for the purpose of receiving compensation

Within the meaning of subsection 14 of Section 858-312 of the "Code" payment of a commission by a broker to a broker or an associate's corporation or limited liability company does not constitute a payment of a fee (commission) to an unlicensed person provided the corporation or limited liability company and the broker and/or associate abide by the following requirements:

(1) The corporation or limited liability company shall not perform any act requiring a real estate license and shall not:

(A) hold itself out as engaged in any act requiring a real estate license

(B) use the corporation or limited liability company name in any advertising

(C) receive referral fees or commissions except from the licensee's broker

(D) use the same name as a trade name, team name, or licensed brokerage

(2) The licensee requesting registration with the Commission must have an active individual real estate license.

(3) The managing broker must provide approval to the Commission of the licensee's corporation or limited liability company.

(4) The licensee requesting registration with the Commission must be the majority stockholder and president of the corporation or majority member of the limited liability company.

(5) Ownership of the corporation or limited liability company is limited to spouses and blood relatives.

(6) The licensee requesting registration with the Commission must pay a fifty dollar ($50.00) registration fee and make the following declarations to the Commission:

(A) A statement that the licensee requesting registration with the Commission is the majority stockholder and president of the corporation or majority member of the limited liability company.

(B) Names and relations of all officers/members and/or stockholders.

(C) Verification that the corporation or limited liability company is in good standing with the Oklahoma Secretary of State.

(7) A licensee may only register one corporation or limited liability company for the purpose of receiving compensation.

(8) The Commission may deny any request to register a corporation or limited liability company formed for the purpose of receiving compensation if the Commission determines the business entity name resembles the name, trade name, or team name of another licensed brokerage so closely that it is likely to confuse the public.

Okla. Admin. Code § 605:10-7-8.4

Added at 29 Ok Reg 1402, eff 7-1-12

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 11/1/2021

Amended by Oklahoma Register, Volume 40, Issue 23, August 15, 2023, eff. 11/1/2023

Amended by Oklahoma Register, Volume 41, Issue 22, August 1, 2024, eff. 11/1/2024