Question

A developer of a new residential subdivision hires a sales staff to sell homes. Are the people who sell these homes for the developer required to hold real estate licenses?

a. No, owner-developers are not regulated by the real estate license law.
b. Yes, all individuals who sell real property for owner-developers must hold a real estate license regardless of the compensation structure.
c. Yes, the sales staff must hold real estate licenses because they are partially compensated based on actual sales.
d. No, the sales staff is paid a salary, so they are not required to hold real estate licenses.

Answer 1

Yes, individuals who sell homes for the developer of a new residential subdivision are required to hold real estate licenses.

Step-by-step explanation:

According to the information provided, most states require a license to work as a real estate broker. Therefore, the people who sell homes for the developer of a new residential subdivision would be required to hold real estate licenses, regardless of the compensation structure. Option b, which states that all individuals who sell real property for owner-developers must hold a real estate license, is the correct answer.