Patricia recently obtained her Michigan salesperson license and is excited to start her career. Her friend, who is also a licensed salesperson at a different brokerage, suggests they co-list a property together and split the commission between themselves. Under Michigan law, which of the following best describes whether this arrangement is permissible?
Correct Answer
A) The arrangement is not permissible because salespersons cannot co-list properties or split commissions directly with each other
Under Michigan Occupational Code Act 299 of 1980 (MCL 339.2512), salespersons cannot independently list properties or split commissions directly with each other. All listings must be held by and in the name of the employing broker, and all compensation must flow through the respective employing brokers. If two brokerages want to co-list a property, the arrangement must be between the two brokers — not between individual salespersons. Salespersons cannot enter into compensation-sharing agreements with each other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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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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