§ 442. Splitting commissions. 1. No real estate broker shall pay any\npart of a fee, commission or other compensation received by the broker\nto any person for any service, help or aid rendered in any place in\nwhich this article is applicable, by such person to the broker in\nbuying, selling, exchanging, leasing, renting or negotiating a loan upon\nany real estate including the resale of a condominium or cooperative\napartment unless such a person be a duly licensed real estate\nsalesperson regularly associated with such broker or a duly licensed\nreal estate broker or a person regularly engaged in the real estate\nbrokerage business in a state outside of New York; provided, however,\nthat notwithstanding any other provision of this section, it shall be\npermissible for a real estate broker to pay any part of a fee,\ncommission, or other compensation received to an unlicensed corporation\nor an unlicensed limited liability company if each of its shareholders\nor members, respectively, is associated as an individual with the broker\nas a duly licensed associate broker or salesperson.\n 2. Furthermore, notwithstanding any other provision of law, it shall\nbe permissible for a broker properly registered pursuant to the\nprovisions of article twenty-three-A of the general business law who\nearns a commission on the original sale of a cooperative or homeowners\nassociation interest in real estate, including condominium units to pay\nany part of a fee, commission or other compensation received for\nbringing about such sale to a person whose principal business is not the\nsale or offering of cooperatives or homeowners association interests in\nreal property, including condominium units in this state but who is\neither: (i) a real estate salesperson duly licensed under this article\nwho is regularly associated with such broker; (ii) a broker duly\nlicensed under this article; or a person regularly engaged in the real\nestate brokerage business in a state outside of New York.\n Except when permitted pursuant to the foregoing provisions of this\nsection no real estate broker shall pay or agree to pay any part of a\nfee, commission, or other compensation received by the broker, or due,\nor to become due to the broker to any person, firm or corporation who or\nwhich is or is to be a party to the transaction in which such fee,\ncommission or other compensation shall be or become due to the broker;\nprovided, however, that nothing in this section shall prohibit a real\nestate broker from offering any part of a fee, commission, or other\ncompensation received by the broker to the seller, buyer, landlord or\ntenant who is buying, selling, exchanging, leasing, renting or\nnegotiating a loan upon any real estate including the resale of a\ncondominium or cooperative apartment. Such fee, commission, or other\ncompensation must not be made to the seller, buyer, landlord or tenant\nfor performing any activity requiring a license under this article.\n
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