Brooke is a licensed Michigan salesperson who has been working for Apex Realty for two years. Apex Realty's broker, Mr. Hall, has his broker license suspended by LARA-BPL due to a disciplinary action. Brooke has three active listings and two pending transactions. Under Michigan law, what is the immediate effect on Brooke's ability to continue working on these transactions?
Correct Answer
D) Brooke's salesperson license becomes inactive immediately, and she cannot perform any licensed real estate activities until she affiliates with a new licensed broker
Under Michigan Occupational Code Act 299 of 1980 (MCL 339.2501 et seq.), a salesperson's license is only active when affiliated with a licensed broker. When the employing broker's license is suspended, the salesperson loses the legal foundation for her active license status immediately. Brooke cannot perform any licensed real estate activities — including working on active listings or pending transactions — until she affiliates with a new licensed broker and her license is reactivated under the new affiliation. There is no grace period or exception for pending transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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