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Practice Of Real EstateLicense_lawHARD

Robert holds an active Idaho real estate salesperson license under Gem State Realty. He is also a licensed contractor and separately builds and sells homes he constructs himself. A neighbor, Lisa, asks Robert to help her sell her home and offers to pay him a commission. Robert agrees to list Lisa's home and markets it without notifying Gem State Realty or placing the listing under the brokerage. Which of the following best describes the legal issues with Robert's conduct?

Correct Answer

C) Robert has violated Idaho license law because a salesperson may only perform real estate brokerage activities under and through their affiliated designated broker, and acting independently is prohibited

Under Idaho Code § 54-2012, a salesperson may only perform real estate brokerage activities — including listing and marketing another person's property for compensation — under and through their affiliated designated broker. Robert's independent listing of Lisa's home without routing the transaction through Gem State Realty violates Idaho license law. His contractor license provides no authority to perform real estate brokerage services for others.

Answer Options
A
Robert has no legal issue because his contractor license permits him to sell real property, and he may act independently for Lisa's transaction
B
Robert may represent Lisa independently because Idaho law allows salespersons to conduct transactions outside their brokerage when representing private individuals rather than corporate clients
C
Robert has violated Idaho license law because a salesperson may only perform real estate brokerage activities under and through their affiliated designated broker, and acting independently is prohibited
D
Robert's conduct is permissible because selling homes he builds himself qualifies him as a principal, and that status extends to assisting others in similar transactions

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Related Topics & Key Terms

Key Terms:

independent_practicedesignated_broker_requirementunlicensed_activitysalesperson_restrictions

Related Concepts

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

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.

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