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

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

• A. The salesperson has acted lawfully
• B. The salesperson should report this to their broker
• C. The salesperson has violated the law
• D. The salesperson needs to pay taxes immediately

Answer: (C)

Selling a house involves a real estate transaction which should be done through a licensed broker. Collecting commission directly from the homeowner without reporting it to their broker would be considered illegal and a violation of real estate laws. The salesperson is also responsible for paying taxes on their commission, so option D is incorrect. Option A is incorrect because the salesperson has acted unlawfully by avoiding reporting the commission to their broker. Option B is also incorrect because reporting it to their broker does not make the action lawful.

Selling a house involves a real estate transaction which should be done through a licensed broker. Collecting commission directly from the homeowner without reporting it to their broker would be considered illegal and a violation of real estate laws. The salesperson is also responsible for paying taxes on their commission, so option D is incorrect. Option A is incorrect because the salesperson has acted unlawfully by avoiding reporting the commission to their broker. Option B is also incorrect because reporting it to their broker does not make the action lawful.