Broker Angela Foster's license is currently on inactive status with MREC. A friend asks Angela to help negotiate the sale of a commercial building and offers to pay her a $15,000 referral fee. Angela provides negotiation assistance and accepts the fee. Which of the following most accurately describes the legal consequences Angela faces under Missouri law?
Correct Answer
C) Angela has engaged in unlicensed real estate activity and may be subject to MREC disciplinary action and potential criminal penalties
Under RSMo Chapter 339, an inactive licensee has no authority to engage in real estate brokerage activities, including negotiating transactions or accepting compensation for such services. Performing brokerage activities on an inactive license constitutes unlicensed practice, which can result in MREC disciplinary action (including permanent revocation) and may also expose Angela to criminal penalties under Missouri law for practicing without a license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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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