Greg is a licensed Sales Agent in Utah and has been approached by a buyer who wants to pay Greg directly for helping find a property, bypassing the brokerage. Greg is tempted to accept the payment as a personal favor. Under Utah Code Ann. § 61-2f, which of the following BEST describes the legal consequence of Greg accepting this direct payment?
Correct Answer
A) Greg may face disciplinary action including license suspension or revocation for accepting compensation outside his Principal Broker
Under Utah Code Ann. § 61-2f, a Sales Agent is prohibited from accepting compensation for real estate brokerage activities from any party other than the affiliated Principal Broker. Accepting direct payment from a client — bypassing the Principal Broker — is a violation of Utah license law and constitutes grounds for disciplinary action by the Utah Division of Real Estate, which may include suspension or revocation of Greg's license.
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Related Topics & Key Terms
Key Terms:
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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