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A salesperson collects a commission directly from a homeowner after selling her house. Which of the following is true?

Option 1: The salesperson has violated the law.
Option 2: The salesperson is exempt from the law.
Option 3: The homeowner violated the law.
Option 4: There is no legal issue involved.

1 Answer

3 votes

Final answer:

If a salesperson collects commission directly from a homeowner, it may be a violation of real estate law or breach of contract with the brokerage firm. This act could potentially be illegal depending on local regulations and contractual agreements.

Step-by-step explanation:

When a salesperson collects a commission for the sale of a house, the legal implications depend on the laws governing real estate transactions in the specific jurisdiction. Typically, real estate commissions are paid by the seller of the property and are often distributed through a brokerage firm, which the salesperson is associated with, rather than being paid directly by the homeowner to the salesperson.

In many areas, it is part of the real estate regulations that commissions must be processed through the brokerage firm to ensure transparency and proper taxation. In this context, if a salesperson bypasses the brokerage and collects commission directly from the homeowner, it could be construed as a violation of real estate laws or the contract between the salesperson and the brokerage. This could be Option 1: The salesperson has violated the law, especially if the salesperson is circumventing brokerage fees, not reporting income, or otherwise breaching contractual duties.

Without full context or specific information about local laws and the terms of the salesperson's employment contract, it's difficult to give a definitive answer. The most accurate response would require further investigation into the specific laws and agreements relevant to the scenario described.

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