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Practice Of Real EstateLicense LawHARD

Kevin is a licensed Delaware salesperson who decides to leave Broker Adams' firm and join a new brokerage operated by Broker Lee. Kevin has several active listings and a pending buyer-client transaction. Under Delaware license law, which of the following correctly describes what must happen for Kevin to legally continue working on these transactions at Broker Lee's firm?

Correct Answer

B) Kevin must notify DREC of the transfer, and his license must be formally transferred to and activated under Broker Lee before he may conduct any brokerage activities at the new firm.

Under 24 Del. C. Chapter 29, a salesperson's license is held under a specific supervising broker. When a salesperson changes brokerages, the license transfer must be formally processed through DREC, and the license must be activated under the new broker before the salesperson may conduct any brokerage activities at the new firm. Kevin cannot legally practice real estate at Broker Lee's firm until this formal transfer is completed. Additionally, active listings are contractual agreements between the seller and the original broker — they do not automatically transfer to the new brokerage.

Answer Options
A
Kevin may immediately begin working at Broker Lee's firm because his salesperson license remains valid regardless of which broker holds it.
B
Kevin must notify DREC of the transfer, and his license must be formally transferred to and activated under Broker Lee before he may conduct any brokerage activities at the new firm.
C
Kevin's active listings automatically transfer to Broker Lee's firm upon Kevin's verbal agreement to join, and no DREC notification is required.
D
Kevin must surrender his current license, wait 30 days, and then reapply for a new salesperson license under Broker Lee's sponsorship.

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Related Topics & Key Terms

Key Terms:

license_transferbroker_changedrecsalespersonactive_listings

Related Concepts

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.

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.

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