Robert is a licensed Missouri salesperson who leaves his sponsoring broker, Crestview Realty, on a Friday. The following Monday, before transferring his license, he shows a property to a buyer and the buyer makes an offer. Robert's former broker at Crestview Realty refuses to process the offer. Which of the following best describes Robert's legal exposure under Missouri law?
Correct Answer
B) Robert has engaged in unlicensed practice of real estate, which is grounds for MREC disciplinary action and may constitute a criminal offense
Under RSMo Chapter 339, a Missouri salesperson's license is tied to the sponsoring broker. When Robert left Crestview Realty without transferring his license to a new sponsoring broker, he had no legal authority to practice real estate. Showing property and soliciting an offer constitutes practicing real estate without a license, which is grounds for MREC disciplinary action (including license revocation or suspension) and may also constitute a criminal offense under Missouri law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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.
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