Broker Sandra's license is suspended by LARA-BPL for 60 days following a disciplinary hearing. During the suspension period, Sandra's affiliated salesperson James continues to show properties and write offers under Sandra's broker name. Which of the following best describes the legal consequence of James's actions during Sandra's suspension?
Correct Answer
B) James is practicing real estate without proper broker affiliation, which is itself a violation of Michigan law
Under MCL 339.2506, a Michigan salesperson must be affiliated with and working under a licensed, active broker. When a broker's license is suspended, the broker cannot legally sponsor or supervise salespersons. James continuing to practice real estate under a suspended broker's name means he lacks valid broker affiliation, which constitutes unlicensed or improperly licensed practice — a violation of Michigan law regardless of the validity of his own salesperson license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
More Practice Of Real Estate Questions
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