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Practice Of Real EstateLicense_lawMEDIUM

Under Georgia license law, which of the following statements about licensure roles and compensation is correct?

Correct Answer

D) Paying compensation for licensed brokerage activity to an unlicensed person violates Georgia license law, regardless of how the payment is structured.

Under O.C.G.A. § 43-40-29 and related provisions of Georgia license law, it is unlawful to pay compensation for the performance of licensed brokerage activities to any person who does not hold a valid Georgia real estate license. The prohibition applies regardless of how the payment is labeled or structured. This prevents parties from circumventing licensure requirements through creative payment arrangements.

Answer Options
A
An associate broker is defined as any salesperson who has held an active license for more than two consecutive years.
B
A salesperson who passes the broker exam automatically becomes the qualifying broker of the firm where they are affiliated.
C
A broker may pay compensation for licensed brokerage activity to an unlicensed person, provided the amount does not exceed a referral fee threshold set by GREC.
D
Paying compensation for licensed brokerage activity to an unlicensed person violates Georgia license law, regardless of how the payment is structured.

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Related Topics & Key Terms

Key Terms:

georgiastate_portionocga_title43_ch40ga_license_law

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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