Salesperson Okafor is affiliated with Broker Davis in Connecticut. Broker Davis's license is suspended by the CREC for 90 days due to a trust account violation. During the suspension period, Okafor continues to show properties and negotiate contracts under Broker Davis's brokerage name. Which of the following best describes the legal status of Okafor's activities during this period?
Correct Answer
B) Okafor's activities constitute unlicensed real estate practice because a salesperson cannot legally operate without an active supervising broker
Under CGS Chapter 392, a Connecticut real estate salesperson's license is dependent on being affiliated with and supervised by an actively licensed broker. When Broker Davis's license is suspended, the broker loses the legal authority to operate a real estate brokerage or supervise salespersons during the suspension period. Because Okafor's ability to lawfully practice real estate is contingent on having an active supervising broker, she cannot legally conduct real estate activities while her sponsoring broker's license is suspended. Doing so constitutes unlicensed activity, exposing Okafor to her own disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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