Salesperson Dana in Minnesota places an ad offering a $500 gift card to any buyer who closes on a home through her. The ad identifies her sponsoring brokerage. A competitor files a complaint with the Minnesota Department of Commerce. Which statement best describes the compliance status of Dana's advertisement?
Correct Answer
B) The ad is compliant if the incentive offer is approved in writing by Dana's sponsoring broker
Under Minnesota real estate licensing law and MN DOC rules, a salesperson may offer incentives such as gift cards to buyers or sellers, but any such incentive must be approved by and paid through the sponsoring broker. The salesperson cannot independently offer or pay compensation or incentives without broker authorization. If Dana's broker has approved the $500 gift card offer in writing, the advertisement is compliant.
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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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