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Practice Of Real EstateLicense_lawHARD

Patricia holds a Minnesota real estate broker license and operates her own brokerage. She decides to take a six-month sabbatical and temporarily closes her brokerage. During this period, she places her broker license on inactive status with the Minnesota Department of Commerce. Her salesperson, Greg, wants to continue working with clients during Patricia's absence. Under Minnesota Statutes Chapter 82, which statement best describes Greg's ability to conduct real estate activities during this period?

Correct Answer

D) Greg may not conduct real estate activities because a salesperson's ability to act depends on affiliation with an active, licensed broker.

Under Minn. Stat. Ch. 82, a salesperson's authority to conduct real estate activities is entirely dependent on affiliation with an active, licensed broker. When the supervising broker's license becomes inactive and the brokerage effectively ceases to operate, the affiliated salesperson loses the legal authority to conduct real estate activities on behalf of that brokerage. Greg must transfer his license to another active broker if he wishes to continue working during Patricia's sabbatical.

Answer Options
A
Greg may continue working with clients if he registers as a temporary independent broker with the DOC for the duration of Patricia's sabbatical.
B
Greg may conduct real estate activities on behalf of Patricia's brokerage as long as he does not sign any contracts or accept any compensation.
C
Greg may continue working with clients because his salesperson license remains active even if his supervising broker's license is inactive.
D
Greg may not conduct real estate activities because a salesperson's ability to act depends on affiliation with an active, licensed broker.

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Related Topics & Key Terms

Key Terms:

license_categoriesinactive_licensebroker_supervisionsalesperson_authorityminn_stat_ch82

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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