Salesperson Greg is affiliated with Broker Helen at Pinnacle Realty. Greg is also a licensed contractor and, during a listing appointment, he tells the seller that he can personally perform renovation work on the home before listing it for a fee. The seller agrees and pays Greg $8,000 for the work. Greg does not disclose this arrangement to Broker Helen. Under Virginia law, which of the following most accurately describes Greg's conduct?
Correct Answer
D) Greg must disclose the arrangement to Broker Helen, and failure to do so may constitute a violation of VREB regulations
Under 18 VAC 135-20-165 and VREB's broker supervision requirements, a salesperson must disclose to their principal broker any activity that may create a conflict of interest or that involves compensation received in connection with a real estate transaction. When Greg performs contractor work on a property he is also listing, the two roles are intertwined, creating a potential conflict. Failure to disclose this arrangement to Broker Helen may constitute a violation of VREB regulations regarding supervision and conflicts of interest. Additionally, Va. Code § 54.1-2130 et seq. requires disclosure of any interest a licensee holds in a transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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