Karen holds an active Montana property manager license but does NOT hold a Montana salesperson or broker license. A current tenant in one of the properties she manages asks Karen to help them purchase a condominium in Helena and offers to pay her a commission. Under Montana law, which of the following best describes what Karen may legally do?
Correct Answer
A) Karen may not assist the tenant with the purchase or accept a commission for brokerage services because her property manager license does not authorize real estate sales activities.
Under MCA Title 37, Chapter 51, a Montana property manager license authorizes only property management activities — such as leasing, rent collection, and maintenance coordination — for compensation. It does not grant authority to engage in real estate sales, purchases, or brokerage activities. Karen would need to separately hold a Montana salesperson or broker license to assist with a property purchase and receive a sales commission. Performing brokerage activities without the appropriate license constitutes unlicensed practice under Montana law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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