Which statement is true regarding licensee compensation in Arizona?

The statement asserting that licensee compensation must go through their broker is accurate for several reasons related to the real estate laws and regulations in Arizona. The broker serves as the legal entity through which all financial transactions, including agent compensation, must occur. This structure is in place to ensure accountability, compliance with state laws, and the protection of clients' funds.

Licensees, or real estate agents, operate under the umbrella of their broker, which means that any fees or commissions earned by a licensee from a transaction must initially flow through the broker. This requirement helps maintain transparency and creates a formal record of all financial dealings relating to each transaction. The broker, in turn, typically disburses the appropriate compensation to the licensee after receiving the funds.

While licensees may receive various forms of compensation, including direct payments from clients or transaction parties, such arrangements are only permissible with the explicit approval of the broker. This ensures that all parties adhere to agency laws and proper business practices, reinforcing the broker's oversight in transactions.

Consequently, this understanding clarifies the importance of broker involvement in licensee compensation within the Arizona real estate framework, making the statement about compensation going through the broker the correct one.