Leilani is a licensed Hawaii real estate salesperson who has been approached directly by a buyer who wants to pay her a $500 referral fee for recommending a property. Leilani's broker is unaware of this arrangement. Under HRS Chapter 467, which of the following is correct?
Correct Answer
C) Leilani may not accept compensation directly from any party; all compensation must flow through her broker
Under HRS Chapter 467, a licensed real estate salesperson in Hawaii may not receive compensation directly from any party to a transaction, including buyers, sellers, or other parties. All compensation earned by a salesperson must be paid through and by the salesperson's employing broker. Accepting direct payment from a buyer or any other party without it flowing through the broker is a violation of Hawaii license law regardless of the amount.
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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.
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