David is a Vermont real estate salesperson whose license is currently on inactive status. His former client, Patricia, calls him asking for help locating a rental property. David agrees to show Patricia several rental units and verbally promises to help negotiate her lease in exchange for a referral fee from the landlord. Which of the following best describes the legal consequence of David's actions?
Correct Answer
C) David has violated Vermont licensing law by performing brokerage activities while his license is inactive
Under 26 V.S.A. Chapter 41, performing real estate brokerage activities — including showing rental properties and negotiating leases for compensation — requires an active Vermont real estate license. David's license is inactive, which means he is not authorized to engage in any brokerage activities. Showing properties and negotiating leases for a referral fee constitutes brokerage activity under Vermont law. David has violated the licensing statute and may be subject to disciplinary action and civil penalties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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