Under the Michigan Occupational Code, Act 299 of 1980, LARA-BPL has broad disciplinary powers over licensed real estate brokers and salespersons. Which of the following is NOT a ground for disciplinary action against a Michigan real estate licensee under the Occupational Code?
Correct Answer
A) Charging a commission rate that is higher than the rate recommended by the local association of REALTORS®
Charging a commission rate higher than what a local REALTORS® association recommends is NOT a disciplinary ground under the Michigan Occupational Code. Commission rates in Michigan are freely negotiable between brokers and their clients — there is no legally mandated rate, and no association recommendation carries the force of law. In fact, establishing standard commission rates would be an antitrust violation. LARA-BPL has no authority to discipline a licensee for charging a negotiated commission that differs from any industry suggestion.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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.
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