Robert is a licensed Massachusetts real estate salesperson who has been approached directly by a buyer who wants to pay Robert a referral fee for recommending an out-of-state property. Robert is not affiliated with a broker in the other state. Under Massachusetts law, which of the following best describes whether Robert may accept this payment?
Correct Answer
C) Robert may not accept compensation directly from the buyer; all compensation must flow through his sponsoring broker
Under Massachusetts law, a licensed salesperson cannot accept compensation for real estate services from any party other than their affiliated licensed broker. Even if the transaction involves out-of-state property or is characterized as a 'referral fee,' Robert must receive any compensation through his sponsoring broker. The broker then distributes the salesperson's share. Accepting direct compensation from a buyer or any other party violates Chapter 112.
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Related Topics & Key Terms
Key Terms:
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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