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Practice Of Real EstateLicense_lawEASY

Maria has just passed her Michigan real estate salesperson exam and received her license. A buyer approaches her directly and offers to pay her a $3,000 referral fee for helping find a property. Under Michigan law, how must Maria handle this compensation?

Correct Answer

C) Maria must refuse direct payment and can only receive compensation through her employing broker

Under MCL 339.2512 and the Michigan Occupational Code Act 299 of 1980, a licensed salesperson may not receive compensation directly from a buyer, seller, or any party to a transaction. All compensation must flow through the salesperson's employing broker. The broker then pays the salesperson according to their agreed compensation arrangement.

Answer Options
A
Maria may accept the $3,000 directly since she is a licensed salesperson
B
Maria must decline the payment entirely, as salespersons cannot earn referral fees
C
Maria must refuse direct payment and can only receive compensation through her employing broker
D
Maria may accept the payment if she deposits it into a trust account within 24 hours

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Related Topics & Key Terms

Key Terms:

license_categoriescompensationsalespersonbroker_requiredact_299

Related Concepts

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

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