Can Vivian pay Carol a commission for her efforts in facilitating a real estate transaction?

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In Indiana, as in many other states, real estate commissions can only be legally paid to licensed brokers or agents. Since Carol does not hold a real estate license, Vivian cannot pay her a commission for facilitating a real estate transaction. This principle is rooted in the requirement that only licensed professionals are authorized to represent others in real estate transactions, ensuring consumer protection and maintaining industry standards.

While there are scenarios where unlicensed individuals can assist in real estate transactions, any compensation, such as a commission, must be tied to licensed individuals. Therefore, since Carol does not have the proper licensing, any payment from Vivian to Carol in the form of commission would violate state regulations. This helps safeguard the integrity of the real estate market and ensures that all parties involved are adequately qualified to handle real estate transactions.

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