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Practice Of Real EstateLicense_lawHARD

Sarah is a licensed Missouri salesperson working under Broker Tom at Metro Realty. She wants to earn additional income and is considering several side activities. Under Missouri law, which of the following activities would Sarah be permitted to do WITHOUT violating her license obligations or Missouri law?

Correct Answer

C) Teach a real estate continuing education course at an MREC-approved school and receive compensation for teaching

Teaching a real estate continuing education course at an MREC-approved school and receiving compensation for that educational service does NOT violate Missouri license law. Compensation for teaching or educational activities is not considered compensation for performing licensed real estate activities. A salesperson may teach real estate courses and be paid for that instructional role without running afoul of Missouri's requirement that all real estate compensation flow through the sponsoring broker.

Answer Options
A
Accept a referral fee directly from an out-of-state broker for sending a client to that broker, without disclosing the payment to Broker Tom
B
Represent a buyer in a residential transaction through a competing brokerage while still affiliated with Metro Realty
C
Teach a real estate continuing education course at an MREC-approved school and receive compensation for teaching
D
Negotiate a lease on behalf of a commercial tenant and collect compensation directly from the tenant without routing it through Metro Realty

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Related Topics & Key Terms

Key Terms:

compensation_through_brokersalesperson_obligationspermitted_activitiesreverse_question

Related Concepts

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.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

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.

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