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Practice Of Real EstateLicense_lawHARD

Broker Elena's Oklahoma broker license expired six months ago. Unaware that her license had lapsed, Elena continued to represent buyers and sellers and collected commissions on three transactions during the six-month period. A client files a complaint with OREC. Under Oklahoma law, which of the following best describes the legal consequences Elena faces?

Correct Answer

C) Elena may face disciplinary action by OREC and may be unable to legally enforce her commission claims, as practicing with an expired license is a violation regardless of intent

Under Title 59 O.S. § 858-301 and § 858-406, performing real estate activities without a valid active license — including operating with an expired license — constitutes unlicensed practice regardless of the licensee's intent or awareness. OREC may impose disciplinary sanctions including fines, and Elena may be unable to legally enforce her commission claims in court because Oklahoma courts generally do not allow recovery of compensation for services performed without a valid license. Good faith or ignorance of the expiration is not a defense to the violation.

Answer Options
A
Elena may keep the commissions because she acted in good faith and was unaware of the expiration
B
Elena must return the commissions but faces no further penalty because the expiration was unintentional
C
Elena may face disciplinary action by OREC and may be unable to legally enforce her commission claims, as practicing with an expired license is a violation regardless of intent
D
Elena faces no OREC consequences because expired licensees are given a 12-month grace period to renew without penalty

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Related Topics & Key Terms

Key Terms:

expired_licenseunlicensed_practicecommission_enforcementdisciplinary_actionlicense_law

Related Concepts

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.

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

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