Final answer:
A licensee who is a subdivider must pay a commission to their broker when selling their own property only if their contractual agreement stipulates as such. The necessity of paying a commission depends on the specific terms outlined in their contract with the broker.
Step-by-step explanation:
Whether a licensee who is also a subdivider must pay a commission to his broker when selling his own property depends on the terms of the agreement between the licensee and the broker. Typically, real estate agents and brokers enter into a contractual relationship detailing the obligations and rights of each party, including commission arrangements. If the contract specifies that the licensee owes a commission for sales of their own property, then they must honor that agreement. However, if the contract does not require the payment of a commission for the licensee’s own property sales, or there is no contract in place, then legally, the licensee would not be obliged to pay a commission.
In real estate transactions, it is always critical to have a clear understanding of the contractual terms to avoid misunderstandings and ensure that all parties fulfill their respective responsibilities. Licensees operating as subdividers should carefully review their contractual obligations regarding commission payouts before listing and selling their own properties.