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Practice Of Real EstateLicense LawHARD

Michael is a licensed Massachusetts real estate broker who operates Coastal Realty. He hires his cousin, Amy, who does not hold a real estate license, to show properties to prospective buyers and to answer questions about listings when licensed agents are unavailable. Michael believes this is acceptable because Amy is not negotiating contracts or collecting money. Under Massachusetts law, which of the following is most accurate?

Correct Answer

C) Amy's activities constitute acts requiring a real estate license in Massachusetts, and both Amy and Michael may be subject to disciplinary action and penalties

Under MGL Chapter 112, showing properties to prospective buyers and providing information about listings are activities that constitute the practice of real estate and require a license in Massachusetts. An unlicensed person may not perform these functions regardless of whether they negotiate contracts or collect money. Both Amy (for performing unlicensed acts) and Michael (for allowing and supervising unlicensed activity) may face disciplinary action, fines, and other penalties from the Board of Registration.

Answer Options
A
Amy's activities are permissible because showing properties and answering questions do not constitute acts requiring a license under Massachusetts law
B
Amy's activities are permissible only if Michael registers her as an unlicensed assistant with the Board of Registration
C
Amy's activities constitute acts requiring a real estate license in Massachusetts, and both Amy and Michael may be subject to disciplinary action and penalties
D
Amy's activities are permissible as long as she does not receive any compensation for showing properties or answering questions about listings

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Related Topics & Key Terms

Key Terms:

license_categoriesunlicensed_practiceunlicensed_assistantbroker_liability

Related Concepts

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.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

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