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Theo and Tessa Browning are both licensed in Illinois. They've formed a limited liability company through which they operate their real estate business. Their broker legally paid compensation for a transaction Tessa closed to Theo and Tessa's LLC. Which of these statements must be false?

a. Only Theo and Tessa are part of the LLC.
b. Theo and Tessa are married.
c. Theo and Tessa work for different sponsoring brokers.
d. Theo and Tessa work for the same sponsoring broker.

User Amr Rady
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Final answer:

The false statement is that Theo and Tessa work for different sponsoring brokers (option c) , as forming an LLC for their real estate business operations suggests they are linked to the same sponsoring broker.

Step-by-step explanation:

The question pertains to the legalities of broker compensation in the context of a limited liability company (LLC) operating in the real estate industry in Illinois. Specifically, it's about the validity of a transaction where compensation is paid to an LLC for real estate services provided by one of its members.



The statement that must be false is c. Theo and Tessa work for different sponsoring brokers. If they formed an LLC to operate their real estate business, it implies that they are working together under the same business entity, which generally would indicate a relationship with the same sponsoring broker. This is because, in most cases, an LLC would be associated or under contract with one sponsoring broker, particularly when it's a closely-held family business.



The other statements listed do not inherently contain information that would make them false based on the provided context.

User Ramon Balthazar
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