A California broker discovers that a salesperson in the office has been accepting side payments from a contractor for referring renovation clients, without the broker's knowledge. Under California law, what are the implications?
Correct Answer
C) The salesperson has violated Cal. B&P Code §10176(g) by receiving compensation from a third party without the employing broker's knowledge and consent, which may result in license suspension or revocation
Under Cal. B&P Code §10176(g), a licensee receiving compensation for real estate services from someone other than their employing broker without the broker's knowledge and consent is grounds for disciplinary action. The salesperson violated this provision by accepting side payments from a contractor without the broker's awareness.
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Related Topics & Key Terms
Key Terms:
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HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
A material defect is a condition that significantly affects the value, desirability, or safety of a property and that would likely influence a reasonable buyer's decision to purchase or the price they would pay.
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- → A property in a California Mello-Roos district has a base Proposition 13 property tax of 1% on its assessed value of $600,000, plus a Mello-Roos special tax of $3,200 per year. What is the total annual property tax bill for this property?
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