A Maryland salesperson, James, received a commission check directly from a seller without routing the funds through his employing broker. When the broker discovered this, she reported James to MREC. Under the Maryland Real Estate Brokers Act, which of the following best describes the violation James committed?
Correct Answer
A) Acting outside the scope of licensure, because a salesperson may not receive compensation directly from a party to a transaction
Under Md. Code Ann., Bus. Occ. & Prof. § 17-405, a licensed salesperson may only receive compensation from their employing broker, not directly from a principal to a transaction. Accepting a commission directly from the seller is a violation of the Act and constitutes acting outside the scope of the salesperson's license authority.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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.
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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