Tom is a licensed real estate salesperson in Ohio who wants to help his sister buy a home in Michigan. He plans to show her properties and negotiate on her behalf, earning a referral fee from a Michigan broker. Under Michigan law, which of the following best describes Tom's ability to conduct these activities?
Correct Answer
B) Tom may only receive a referral fee from a Michigan broker but may not personally show properties or negotiate in Michigan without a Michigan license.
Michigan does not have a blanket reciprocity agreement with Ohio that automatically allows Ohio licensees to practice in Michigan. An out-of-state licensee may not show properties, negotiate transactions, or perform other licensed real estate activities in Michigan without a Michigan license. However, an out-of-state licensee may receive a referral fee from a Michigan-licensed broker for referring a client, as long as the out-of-state licensee does not perform any Michigan-regulated real estate activities. The actual showing and negotiation must be performed by the Michigan-licensed broker or their affiliated salesperson.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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.
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?
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