Salesperson Tom is licensed in Michigan. He is convicted in another state of a felony involving fraud and dishonesty. Tom does not report this conviction to LARA-BPL. When LARA-BPL discovers the conviction during a routine audit, which of the following outcomes is most consistent with Michigan law?
Correct Answer
B) Tom's license may be suspended or revoked, and the failure to report the conviction is itself a separate disciplinary violation
Under MCL 339.2511 and the Michigan Occupational Code, a felony conviction involving fraud or dishonesty is grounds for disciplinary action including suspension or revocation of a Michigan real estate license, regardless of the state in which the conviction occurred. Additionally, Michigan licensees have a duty to report criminal convictions to LARA-BPL; failure to do so constitutes a separate, independent disciplinary violation.
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Related Topics & Key Terms
Key Terms:
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.
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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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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