Broker Nguyen's Michigan broker's license expired six months ago due to an oversight, but she continued to actively list and sell properties without renewing. She has now renewed her license and wants to collect commissions on the three transactions she closed during the lapsed period. Under Michigan law, what is the most likely outcome regarding these commissions?
Correct Answer
C) Nguyen cannot collect commissions for services performed while her license was expired, and she may face disciplinary action for practicing without a license
Under MCL 339.2501 and Michigan case law interpreting the Occupational Code, a person who performs real estate services while their license is expired or lapsed is considered to be acting without a license. Michigan courts have consistently held that unlicensed persons cannot enforce commission agreements or collect fees for services rendered during the unlicensed period. Subsequent renewal does not retroactively validate the unlicensed period. Additionally, Nguyen may face LARA-BPL disciplinary action for practicing without a valid license, including potential fines and conditions on her renewed license.
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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
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