A Minnesota real estate salesperson, Rachel, is changing brokerages. Her current broker, Broker A, has submitted the license transfer paperwork to the Minnesota Department of Commerce, but the transfer has not yet been processed. During this processing period, Rachel shows a property to a prospective buyer under the name of Broker B, her new broker. Which of the following best describes Rachel's legal status during this period?
Correct Answer
D) Rachel is operating illegally because her license is not yet officially transferred to Broker B, and she may not conduct licensed activities on behalf of Broker B.
Under Minn. Stat. Ch. 82, a salesperson's license must be officially affiliated with and issued under the sponsoring broker before the salesperson may conduct licensed real estate activities on that broker's behalf. Until the Minnesota Department of Commerce processes the transfer and the license is officially placed with Broker B, Rachel is not legally authorized to conduct real estate activities under Broker B's name. Acting as though the transfer is complete before DOC processes it constitutes unlicensed activity.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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