California Real Estate Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

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

The salesperson has acted lawfully

The salesperson should report this to their broker

The salesperson has violated the law

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.

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The salesperson needs to pay taxes immediately

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