Kevin is a licensed real estate salesperson in Missouri who recently left Gateway Realty without transferring his license to a new sponsoring broker. His former client, Donna, calls and asks Kevin to help her purchase a home. Kevin shows Donna three properties and negotiates an offer on her behalf. Under Missouri law, which statement most accurately describes Kevin's legal situation?
Correct Answer
B) Kevin's activities are unlicensed practice because a Missouri salesperson's license is held by the sponsoring broker
Under Missouri law (RSMo Chapter 339), a salesperson's license is issued to and held by the sponsoring broker, not by the salesperson personally. When Kevin left Gateway Realty without transferring his license to a new sponsoring broker, his license became inactive. Any real estate activity he performs—showing property, negotiating offers—constitutes unlicensed practice of real estate, which is a violation of Missouri law and grounds for disciplinary action by MREC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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