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Practice Of Real EstateLicense_lawHARD

Under Connecticut license law and CREC regulations, which of the following is NOT a ground for which CREC may discipline a Connecticut real estate licensee?

Correct Answer

C) Charging a commission rate that differs from the rate suggested in a local real estate association's fee schedule.

Under Connecticut antitrust law and federal law, real estate commission rates are freely negotiable and no fixed or suggested rate schedule is legally binding. CREC cannot discipline a licensee for charging a commission rate that differs from any association's suggested schedule — in fact, adhering to a fixed schedule could itself be an antitrust violation. Commission rates are a matter of private contract between the broker and client.

Answer Options
A
Making a material misrepresentation to a buyer regarding the condition of a property.
B
Failing to disclose a known agency relationship to a client at first substantive contact.
C
Charging a commission rate that differs from the rate suggested in a local real estate association's fee schedule.
D
Commingling client escrow funds with the broker's personal operating funds.

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Related Topics & Key Terms

Key Terms:

disciplinary_actionscommission_ratesantitrustcommission_powersct_license_law

Related Concepts

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

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