LAWS COVERING LICENSING The real estate division within each state is responsible for creating specific laws and requirements that every licensed real estate agent is subject to follow. Let’s take a moment and review the underlying principles behind these laws. •
It is illegal to work as a sales associate or a broker without having a valid and active license.
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It is illegal to work as a broker if you only have a sales associate license.
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It is illegal for a broker to employ a sales associate who is not licensed.
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It is illegal for a broker to operate under an unregistered or unlicensed trade name, partnership, or corporation.
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It is illegal to attempt to obtain or renew a license by bribery or misrepresentation.
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It is illegal for a sales associate to collect money related to a real estate transaction unless it is in the name of the broker or the name of the licensed business.
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It is illegal to work in the real estate profession in a way that is fraudulent, deceptive, untrue, or misleading.
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It is illegal to share a commission or pay compensation to an unlicensed person for any services that would require that person to have a real estate license. That would include the referral of real estate business, clients, prospects, and customers.
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It is illegal to practice real estate that is beyond what is permitted under their license level.
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It is illegal to become involved in a real estate transaction when the licensee knows they are not competent or qualified to perform it.
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It is a license violation if a real estate agent renders an opinion on the salability of the title of a property without first consulting with a licensed attorney.
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It is a license violation if the real estate agent fails to immediately place in escrow any monies that have been entrusted to the agent while practicing real estate.
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It is a license violation if an agent fails to report in writing to their state board or department that the licensee has been convicted or found guilty of a crime in any jurisdiction.
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