EstatePass
Practice Of Real EstateLicense_lawMEDIUM

Under Michigan Occupational Code Act 299 of 1980, which of the following activities may a licensed Michigan salesperson perform WITHOUT broker supervision or authorization?

Correct Answer

A) Independently negotiating a commission split directly with a cooperating broker

A licensed Michigan salesperson may NOT independently negotiate commission splits directly with a cooperating broker. Under MCL 339.2512 and Act 299, compensation arrangements — including commission splits between brokerages — are the exclusive domain of the employing broker. A salesperson has no authority to bind the broker to compensation agreements with outside parties. This activity requires broker authorization and is not within the salesperson's independent authority.

Answer Options
A
Independently negotiating a commission split directly with a cooperating broker
B
Conducting an open house for a property listed by the employing broker
C
Drafting and presenting an offer to purchase on behalf of a buyer client
D
Showing a listed property to a prospective buyer on behalf of the employing broker

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

license_categoriessalespersonbroker_supervisioncompensationreverse_questionact_299

Related Concepts

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.

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.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing