A Utah real estate licensee's license has been placed on inactive status. While inactive, the licensee's friend asks her to help negotiate the purchase of a home in exchange for a referral fee. Under Utah Code Ann. § 61-2f, may the licensee accept the referral fee?
Correct Answer
C) No, because an inactive licensee may not perform real estate activities or receive compensation for them
Under Utah Code Ann. § 61-2f, a licensee with an inactive license is prohibited from performing any real estate activities that require a license — including negotiating purchases — and may not receive any compensation (including referral fees) for such activities. An inactive license means the licensee has no authority to engage in licensed real estate activities. Performing such activities while inactive constitutes unlicensed practice.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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