Under what condition would it be legal for principal broker to pay a portion of his commission to unlicensed brother Bryant?

The condition under which it would be legal for a principal broker to pay a portion of his commission to an unlicensed individual, like brother Bryant, is if Bryant was a party to the transaction and received a cash rebate. In real estate transactions, parties involved may receive rebates or concessions from the commissions earned. This is typically permissible as long as it is disclosed and complies with local regulations.

When a person is a party to the transaction—meaning they have a vested interest or are directly involved in the sale—there are provisions that allow them to receive payments related to the deal. In this context, the commission payment can be seen as a form of rebate to Bryant for his involvement in the transaction, rather than payment for services rendered as a licensed agent.

In contrast, if Bryant were to be a licensed agent at the time, the legal framework would not apply as he wouldn't be unlicensed. Providing professional services as an agent would also require a license for the payment of commissions to be legal. Lastly, giving the commission as a gift does not align with the transactional nature of commission agreements and may not comply with real estate laws governing commissions and rebates.