Final answer:
Susan must turn over her commissions to the principal broker as per standard real estate practice and brokerage agreements. She cannot personally guarantee her commissions, keep them in a personal account, or exempt them from reporting or disclosure. Option b) is correct.
Step-by-step explanation:
The question pertains to the practices of real estate brokers concerning their commissions. Specifically, it is related to how Susan, as a real estate broker associated with Brown Reality in Portland, should handle her commissions.
The correct answer is: b) Susan must turn over her commissions to the principal broker. This is because in most real estate agencies, individual brokers are not independent entities but work under the umbrella of a principal broker, who is responsible for handling the financial and legal aspects of transactions. The commissions earned by associate brokers like Susan are typically paid to the agency first, and then distributed according to the agreed-upon commission structure within the agency.
Susan cannot ethically or legally personally guarantee her commissions to the seller, as commissions are agreed upon in the brokerage contract. Additionally, her commissions must be reported for tax purposes and disclosed in accordance with real estate law regulations. Holding her commissions in a personal bank account before turning them over to the principal broker would violate typical brokerage agreements and possibly state laws regarding real estate transactions.