Skip to content
Keeton & Co Real Estate

For agents

Can a Virginia real estate agent accept a commission directly from a client?

By Daniel Keeton Updated 5 min read

No. Under 18VAC135-20-280, a Virginia salesperson or associate broker may accept a commission, fee or other compensation for licensed real estate activity only from their principal or supervising broker at the time the work was performed, unless the principal broker gives prior written consent. That includes client bonuses and referral fees, which should flow through the brokerage.

Keeton & Co agents working on laptops around a conference table in the office

No, not on your own. In Virginia, a salesperson or associate broker can accept a commission, fee or other compensation for licensed real estate activity only from their principal broker or supervising broker at the time the work was performed, unless the principal broker gives prior written consent. That’s 18VAC135-20-280, the Real Estate Board’s rule on improper financial dealings, and it covers more than closing checks.

Keeton & Co publishes this article and recruits agents. The rules below come from Virginia’s Real Estate Board regulations and statute, linked throughout. Your principal broker is the right person to answer how they apply to a specific situation.

What exactly does Virginia’s rule say?

Section 280 lists five improper financial transactions. Three come up most often for agents:

Rule (18VAC135-20-280(A)) In plain terms
(2) Accepting compensation from anyone except your principal or supervising broker at the time of the activity, without the principal broker’s prior written consent Clients, the other agent, lenders, builders and title companies don’t pay you directly
(1) Paying or giving valuable consideration to anyone not licensed in any jurisdiction for services that require a license No referral fees or cash for a lead to unlicensed people for licensed work
(4) Receiving a financial benefit for any work or service related to a transaction without the prior written acknowledgment of the person paying for it Extra payments tied to a deal have to be acknowledged in writing in advance

The other two items cover profiting from transaction information without written consent from your principal broker, your clients and, when applicable, the parties (A3), and making “net” listings where the agent keeps anything above the seller’s net price (A5).

Can a client give you a bonus or a thank-you gift card?

Treat it as compensation. Virginia REALTORS® answered this exact question in 2024: a gift card handed to an agent at closing falls under the rule, and any extra amount a client wants to give beyond the contracted commission needs to go through the brokerage. That guidance was written under the prior wording of section 280, but the current text still limits who can pay a salesperson.

If a client wants to say thank you with money, the clean path is to tell your broker and let it flow through the firm, documented.

Who pays you after you switch brokerages?

The broker you were with when the work was done. The current rule ties payment to your principal or supervising broker “at the time the licensed real estate activity was performed.” Virginia REALTORS®’ 2023 answer on pending deals says the prior broker can pay the agent directly for a transaction ratified while the agent was there, even after the license has moved.

What you’re paid, and when, still depends on your independent contractor agreement with the old firm. Read its post-departure terms before you transfer, and get any arrangement for pending deals in writing. Our guide on when to switch brokerages covers timing around a pipeline.

Can a vendor or another agent pay you a referral fee?

Not directly. A referral fee from another licensee is compensation for licensed activity, so under section 280(A)(2) it goes to your principal broker, who pays you under your agreement. Going the other way, you can’t pay an unlicensed friend or past client a fee for referring business that requires a license, under 280(A)(1).

Payments from vendors such as lenders, title companies, inspectors or contractors raise separate issues, including the written-acknowledgment rule in 280(A)(4) and federal settlement rules outside the scope of this article. Run any proposed arrangement by your principal broker before you accept anything.

Can you be paid through your own LLC or team entity?

Virginia has a license for that structure. Under Va. Code § 54.1-2106.1, a business entity can act as a salesperson only with a separate business entity salesperson license, every owner or officer active in the brokerage business must be licensed, and any real estate team must hold that license before operating. The Real Estate Board’s fee schedule (18VAC135-20-15) lists $285 for the initial business entity license, including the recovery fund assessment, and $135 to renew.

A licensed entity still works under a principal broker. Whether your firm pays commissions to the entity and how it’s set up is a question for your principal broker and your accountant.

Common situations and the compliant path

Situation Compliant path
Buyer offers you $500 at closing as thanks Tell your broker; any payment goes through the firm
Seller agrees to a bonus for a fast sale Put it in the listing agreement with the brokerage; it’s paid to the firm
Out-of-state agent refers you a buyer Referral agreement broker to broker; your broker pays your share
Past client sends a friend your way and wants a “finder’s fee” Not allowed if they’re unlicensed and it’s for licensed work; a thank-you note is fine
Commission on a deal ratified before you switched Paid by the broker you had at the time, under your old agreement
Your team wants checks paid to its LLC The team needs a business entity salesperson license; ask your principal broker how the firm pays it

Why the rule exists, and what to ask a brokerage

The rule keeps money tied to the broker who supervises the work and is accountable for it. Practically, it means every dollar you earn runs through your brokerage’s split, cap and fees, which is why the fee structure matters as much as the headline split.

When you compare brokerages, ask for the full schedule in writing. For reference, here’s Keeton & Co’s Individual Agent Commission Plan as published on keetonco.com/join on November 10, 2026: commission levels from 70/30 to 92/8, a $20,000 annual cap, then 100% with a $200 transaction fee per deal; transaction coordination at $387 per deal; technology at $75 a month; and no E&O or office fee. A separate leads plan is available as an upgrade. Those are fees you pay, not take-home pay, and results vary by agent. Our article on what fees brokerages charge agents walks through how to compare schedules.

What should you do next?

If you’re weighing a move and want to talk through how compensation, referrals or a team entity would work, our team at Keeton & Co Real Estate, the brokerage Daniel Keeton founded and leads as Broker, offers confidential brokerage-fit conversations. Reach out to our team and tell us what you’re trying to figure out.

Confidential

Want to talk it through?

A conversation with David Giles, not a group presentation. Nothing gets back to your current broker.

By submitting, you agree that Keeton & Co Real Estate and its agents may call and text you at the number you provided about a career with Keeton & Co, including by automated means and AI-generated or prerecorded voice. Consent is not a condition of purchase. Msg & data rates may apply. Reply STOP to opt out. Privacy Policy

Goes to David Giles, Director of Business Development. Never to the client pipeline, and never to your current broker.

More on for agents