Salesperson Greg, licensed under Broker Lisa at 'Lisa's Realty CT,' has obtained approval from Lisa to operate a personal real estate website. Greg's website prominently displays 'Lisa's Realty CT' and includes Greg's CREC license number. However, the website also contains a page where Greg offers 'free real estate consulting' services directly to consumers for a flat fee, with payment going directly to Greg's personal bank account rather than through the brokerage. Under Connecticut license law, which of the following BEST describes Greg's situation?
Correct Answer
A) Greg is in violation because a salesperson may only receive compensation through the supervising broker, not directly from consumers
Under Connecticut license law (CGS Chapter 392), a licensed salesperson may only receive compensation for real estate services through the supervising broker — not directly from consumers. Even if Greg characterizes the service as 'consulting,' if it involves real estate-related activities requiring a license, he cannot receive payment directly from clients. All compensation must flow through the broker. Accepting direct payment from consumers bypasses the broker's supervisory role and violates Connecticut's compensation rules for salespersons. This is a fundamental distinction between salesperson and broker status in Connecticut.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
- → In Wyoming real estate practice, a written sworn complaint or Commission motion starts a disciplinary matter. What should the licensee remember?
- → A Wyoming licensee is reviewing a first-time salesperson applicant asks which prelicense courses are required. What is the best answer?
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