Legal Question of the Week

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Question Title

* 1. Which statement is not true?

A. a licensee must have reasonable cause to compel compensation;

B. a broker can compensate his salesperson for working on a transaction even though the salesperson let his license lapse for a few weeks when he was working with the buyer because he got his license active again within 3 days of the closing;

C. brokers must compensate the cooperating brokers and not the cooperating brokers’ salespeople directly; or

D. a broker cannot take a buyer’s deposit money as his commission when the transaction fails.