Broker Natalie's salesperson, Derek, is also a licensed auctioneer in Missouri. A property owner hires Derek to conduct a real estate auction. Derek argues that because he is conducting an auction — not a traditional real estate sale — he does not need to route the auction commission through Natalie's brokerage. He claims his auctioneer's license covers the transaction. Under Missouri law, which of the following is the most accurate analysis?
Correct Answer
D) Derek must route all compensation for the real estate auction through Natalie's brokerage, because selling real estate at auction constitutes a licensed real estate activity in Missouri regardless of the auctioneer's license
Under RSMo Chapter 339, selling, buying, or negotiating the sale of real estate for another person for compensation requires a real estate license in Missouri. Conducting a real estate auction is an act of selling real estate for another for compensation, which falls within the definition of activities requiring a real estate license. Holding a separate auctioneer's license does not exempt Derek from Missouri's real estate license law requirements. Therefore, any compensation Derek earns for selling real estate at auction must flow through his sponsoring broker, Natalie, in accordance with the compensation-through-broker rule. Attempting to keep the commission directly would violate RSMo Chapter 339.
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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?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
- → In Wyoming real estate practice, a written sworn complaint or Commission motion starts a disciplinary matter. What should the licensee remember?
- → A Wyoming licensee is reviewing a first-time salesperson applicant asks which prelicense courses are required. What is the best answer?
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