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Practice Of Real EstateLicense_lawHARD

Sarah holds an Associate Broker license in Utah and is affiliated with Summit Realty. Which of the following statements about Sarah's license status and authority is NOT accurate under Utah Code Ann. § 61-2f?

Correct Answer

D) Sarah may receive compensation directly from clients without routing payment through the Principal Broker

Under Utah Code Ann. § 61-2f, all compensation paid to a licensee in connection with a real estate transaction must flow through the Principal Broker. An Associate Broker — despite holding a broker-level license — may not receive compensation directly from clients or from cooperating brokerages. All commissions and fees must be paid to the Principal Broker, who then compensates the Associate Broker according to their agreement.

Answer Options
A
Sarah met the education and experience requirements for a broker license prior to obtaining her Associate Broker license
B
Sarah may represent buyers and sellers in real estate transactions under the supervision of her Principal Broker
C
Sarah has passed the same broker-level examination as a Principal Broker
D
Sarah may receive compensation directly from clients without routing payment through the Principal Broker

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Related Topics & Key Terms

Key Terms:

associate_brokercompensationprincipal_brokerreverse_question

Related Concepts

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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.

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