During a MREC investigation, it is discovered that a licensed broker in Maine has been operating as a designated broker without holding the designated broker license — he simply registered a trade name and began supervising two associate brokers. Which of the following best describes the potential consequences under Maine law?
Correct Answer
B) The broker may face license suspension or revocation, civil fines, and the associate brokers' activities during this period may be considered unlicensed practice
Operating as a designated broker without holding the required license is a serious violation of 32 M.R.S. § 13070. The broker faces MREC disciplinary action including suspension or revocation and civil fines. Additionally, because the broker lacked legal authority to supervise licensees, the associate brokers may have been engaged in unlicensed practice during this period, as their activities were not properly supervised under a valid designated broker license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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