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Sarah is a licensed Massachusetts real estate salesperson whose license has been inactive for eight months. During this period, she helps her neighbor negotiate the purchase of a condo and accepts a $3,000 fee for her services. Under Massachusetts law, what is the most likely consequence Sarah faces?

Correct Answer

A) Sarah faces disciplinary action by the Board, including possible license revocation and criminal penalties for practicing without an active license

Under MGL Chapter 112, practicing real estate brokerage activities for compensation without an active license is illegal in Massachusetts. An inactive license does not permit the licensee to engage in real estate transactions for a fee. Sarah is subject to Board disciplinary action, including possible revocation of her license, as well as criminal penalties for unlicensed practice.

Answer Options
A
Sarah faces disciplinary action by the Board, including possible license revocation and criminal penalties for practicing without an active license
B
Sarah faces no penalty because helping a neighbor is considered a personal favor and not a commercial transaction
C
Sarah faces a mandatory 30-day suspension upon reactivating her license, but no criminal liability
D
Sarah faces a civil fine only, because her license was previously valid and she acted in good faith

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Related Topics & Key Terms

Key Terms:

inactive_licenseunlicensed_practicedisciplinary_actionscriminal_penalties

Related Concepts

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.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

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