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Which represents lawful brokerage firm practice?

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Question & Answer

Review the question and all answer choices

A

Keeping $250 of firm money in client trust account

Correct Answer
B

Removing earned commission after 60 days

Removing earned commission after 60 days violates California's prompt payment requirements. Commissions must be paid promptly upon collection, not held arbitrarily. This creates unnecessary risk to the agent's compensation and potential liability for the brokerage firm.

C

Supervising independent contractor licensees as employees

Supervising independent contractors as employees misclassifies their status, violating labor laws and potentially exposing the firm to penalties, back taxes, and liability. Independent contractors have specific legal status that differs from employees.

D

Steering

Steering is illegal under fair housing laws as it involves directing buyers or renters to or from certain neighborhoods based on protected characteristics. This constitutes discrimination and violates California's Unruh Civil Rights Act.

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