Broker Agreement requesting 10% of any Out-of-State Commissions I collect... Typical or Scam?
Hey CRE Gang,

Getting ready to start work with a new brokerage in my home state but have residual work that I do with my father in neighboring states where I have reciprocal license. I work with a 100% Commission online broker for out-of-state work. 

My Compensation Rider has a section specifically for OOS transactions, and says the company gets 10% of every commission I collect from out of state business. 

Is this a standard practice, or just added as a one-off to try and collect some of my commissions from out of state? 

Is it even legal for that broker to profit on a sale done in a different state when they aren't licensed there? Feels like this is a big loophole that could be abused if so. 

Any feedback is appreciated!

 \-Floriduh
[{"id": "hwdaysj", "text": "I suspect they have tacked this on to discourage your out-of-state work. If you hang your license with me, I want you working 100% for my brokerage, not on projects that I won't benefit from.", "replies": [], "depth": 1}]