A Massachusetts real estate broker, Frank, has his license suspended by BORREBS following a disciplinary hearing for commingling client funds. Frank has three affiliated salespersons — Grace, Henry, and Isabel — who are actively working with clients. Under Massachusetts law, what is the immediate legal effect of Frank's license suspension on Grace, Henry, and Isabel's ability to practice real estate?
Correct Answer
B) Grace, Henry, and Isabel's licenses become inactive because their licenses are tied to Frank's suspended broker license
Under Massachusetts law, a salesperson's license is issued under and tied to the sponsoring broker's license. When a broker's license is suspended, the salespersons affiliated with that broker lose their authority to practice real estate because their licenses are dependent on the broker's active license status. Grace, Henry, and Isabel's licenses become inactive upon Frank's suspension. They must transfer their licenses to a new, actively licensed broker before they can resume practicing real estate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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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