In the scenario where a broker's unlicensed assistant helped close a transaction, can the broker legally pay the assistant a commission?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

The situation centers around the legality of compensating an unlicensed assistant in a real estate transaction. According to real estate regulations, only individuals who hold a valid real estate license can receive a commission for activities related to closing a transaction. This rule is in place to protect consumers and ensure that only qualified individuals engage in activities that require expertise and knowledge of the law.

An unlicensed assistant may perform various supportive functions, such as administrative tasks or providing help with marketing and office duties, but they cannot participate in transaction-related activities that would entitle them to a commission. Paying an unlicensed person for help in closing a transaction would constitute a violation of state laws governing real estate practices and could subject the broker to disciplinary action from regulatory bodies.

Thus, since the question addresses whether the broker can legally pay such an assistant a commission, the answer is clear: doing so would indeed violate regulations concerning unlicensed assistants. This reinforces the importance of adhering to licensing laws within the real estate profession to ensure compliance and maintain professional standards.

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