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Practice Of Real EstateLicense_lawHARD

Patricia is a licensed Connecticut real estate salesperson who has been working under Broker Allen for three years. Allen's broker license expires and he fails to renew it. Patricia continues to show properties and negotiate contracts for the next two weeks while Allen attempts to reinstate his license. Under Connecticut law, which of the following best describes Patricia's actions during this period?

Correct Answer

C) Patricia is engaged in unlicensed real estate activity because her license is effectively inactive without an affiliated active broker

Under CGS Chapter 392, a salesperson's license must be affiliated with a licensed broker who holds an active license. When the supervising broker's license expires and becomes inactive, the salesperson's ability to legally perform brokerage activities is also suspended, even if the salesperson's own license has not expired. Continuing to perform brokerage activities without an active supervising broker constitutes unlicensed activity under Connecticut law.

Answer Options
A
Patricia's actions are permissible because her own salesperson license remains active and valid
B
Patricia's actions are permissible for up to 30 days as a grace period while her broker reinstates his license
C
Patricia is engaged in unlicensed real estate activity because her license is effectively inactive without an affiliated active broker
D
Patricia must only stop negotiating contracts but may continue to show properties during this period

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Related Topics & Key Terms

Key Terms:

license_categoriesbroker_license_expirationsalesperson_authorityunlicensed_activity

Related Concepts

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

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