Broker Susan operates a real estate office in Boston. She employs three licensed salespersons and two unlicensed administrative assistants. One of the unlicensed assistants, Mike, regularly answers calls from prospective buyers and provides them with specific information about listed properties, including pricing, square footage, and available showing times, without any supervision from Susan. Under Massachusetts Board regulations, which of the following best describes whether Mike's activities are permissible?
Correct Answer
A) Mike's activities constitute unlicensed brokerage practice because he is providing specific property information to prospective buyers, which requires a license
Under Massachusetts law and Board regulations, providing specific property information — including pricing, square footage, and showing availability — to prospective buyers constitutes real estate brokerage activity that requires a license. While unlicensed assistants may perform purely ministerial tasks (such as scheduling, filing, and clerical work), independently fielding calls from prospective buyers and providing specific property details crosses the line into licensed activity. Mike is engaging in unlicensed brokerage practice, and Susan is potentially liable for permitting it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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