New Hampshire homeowner Helen owns a single-family residence and wants to sell it herself without using a real estate agent. She places a 'For Sale By Owner' sign on the property and negotiates directly with buyers. Her neighbor, unlicensed Tom, offers to help by showing the property to prospective buyers and communicating offers to Helen in exchange for a $500 payment from Helen at closing. Under RSA Chapter 331-A, which of the following is true?
Correct Answer
D) Tom is engaging in unlicensed real estate brokerage activity by showing property and communicating offers for compensation, in violation of RSA 331-A.
Under RSA 331-A, showing property and communicating offers on behalf of another person in exchange for compensation constitutes real estate brokerage activity requiring a license. Tom is performing licensed activities (showing property and conveying offers) for compensation ($500), and he is doing so on behalf of another person (Helen). This is unlicensed practice regardless of the amount of compensation involved.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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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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?
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