Broker Sandra in Massachusetts is disciplined by the Board for a serious violation and her license is revoked. Sandra then attempts to continue operating her real estate brokerage by having her unlicensed spouse sign all contracts and act as the nominal principal, while Sandra continues to perform all substantive brokerage activities. A complaint is filed. Under Massachusetts law, how would the Board most likely characterize Sandra's conduct?
Correct Answer
B) Sandra's conduct constitutes unlicensed practice and circumvention of a Board order, which are independent grounds for further disciplinary action and criminal penalties
Using an unlicensed person as a nominal principal while continuing to perform real estate brokerage activities constitutes unlicensed practice under MGL Chapter 112. It also constitutes circumvention of a Board revocation order, which is an independent and serious violation. Massachusetts law provides for both additional Board disciplinary action and criminal penalties for such conduct. This type of arrangement—sometimes called 'conducting business through a straw'—is explicitly prohibited.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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.
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?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
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?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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