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Practice Of Real EstateLicense LawEASY

Under Massachusetts General Laws Chapter 112, all of the following are grounds for disciplinary action against a real estate licensee by the Board of Registration EXCEPT:

Correct Answer

D) Referring a client to a licensed home inspector without receiving any referral fee

Referring a client to a licensed home inspector without receiving any referral fee is a routine and entirely lawful professional activity. It does not constitute a violation of Massachusetts license law or Board regulations and therefore is NOT a ground for disciplinary action. A licensee is free to make such referrals as a service to clients.

Answer Options
A
Commingling a client's escrow funds with the licensee's personal bank account
B
Making a material misrepresentation to a buyer about a property's condition
C
Failing to complete the required continuing education hours before license renewal
D
Referring a client to a licensed home inspector without receiving any referral fee

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Related Topics & Key Terms

Key Terms:

disciplinary_groundsreverse_questioncontinuing_educationreferrals

Related Concepts

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.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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