Patricia is a licensed Associate Broker in Utah who is affiliated with Horizon Realty under Principal Broker Frank. Patricia has been conducting real estate activities and recently negotiated a transaction where the buyer wants to pay Patricia a bonus directly in addition to the commission paid through the brokerage. Frank has verbally agreed that Patricia may keep the bonus. Under Utah Code Ann. § 61-2f, which of the following BEST describes the legal status of this arrangement?
Correct Answer
A) The arrangement is still a violation because all compensation must flow through the Principal Broker regardless of the broker's verbal consent
Under Utah Code Ann. § 61-2f, all compensation for real estate brokerage activities must flow through the Principal Broker — this requirement applies to both Sales Agents AND Associate Brokers. The Principal Broker's verbal consent does not cure the violation. The statute requires that compensation be paid to the brokerage and then distributed to the licensee; direct payment from a client to any affiliated licensee (regardless of license tier) circumvents this requirement and remains a disciplinary violation. Written consent or a properly documented compensation arrangement through the brokerage is required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
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?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
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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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