The SDREC has specific authority to discipline licensees for a range of violations under SDCL 36-21A-71. Which of the following is NOT a ground for disciplinary action by the SDREC against a South Dakota real estate licensee?
Correct Answer
A) Negotiating a commission rate that is lower than the rate recommended by the local real estate association
Negotiating a commission rate lower than a local association's recommended rate is NOT a ground for SDREC disciplinary action — in fact, requiring a minimum commission rate would constitute illegal price-fixing under antitrust law. Commission rates are freely negotiable, and no law or rule requires licensees to charge a minimum rate. Charging a lower rate is not a violation of any provision of SDCL Chapter 36-21A.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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.
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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- → 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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