Broker Hana operates a real estate brokerage in Honolulu. She hires her unlicensed cousin, Tom, to show properties to prospective buyers and to answer buyer questions about listings. Tom does not negotiate contracts or collect deposits. Under HRS Chapter 467, which of the following is correct?
Correct Answer
C) Tom is engaging in activities that require a real estate license, and both Tom and Hana may be subject to disciplinary action
Under HRS Chapter 467, showing properties to prospective buyers and answering their questions about listings constitutes real estate activity requiring a license. Tom is performing licensed activities without a license, which is unlicensed practice. Broker Hana is also subject to disciplinary action for allowing and directing an unlicensed person to perform activities that require a license under her supervision.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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.
More Practice Of Real Estate Questions
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