Question 40

This agreement is unacceptable because salespersons may not share commissions directly.

The agreement between the two salespersons is not permissible as it involves a direct sharing of commission, which is against established regulations for real estate transactions.

A) It is acceptable because both salespersons have agreed to the conditions.

While mutual agreement is important in any transaction, it does not override the legal and ethical guidelines governing commission sharing. In this case, the lack of adherence to regulations makes the agreement unacceptable regardless of consent.

B) It is acceptable because salespersons are free to share commissions with other salespersons.

This statement is misleading, as commission sharing among salespersons is not universally permitted. Regulations often restrict such practices to ensure transparency and compliance, thus rendering this agreement unacceptable.

C) It is unacceptable because the agreement to share commissions was not in writing.

Although having a written agreement is often a best practice, the core issue here lies in the illegality of the commission-sharing practice itself rather than the format of the agreement. Therefore, this option does not accurately capture the reason for unacceptability.

D) It is unacceptable because salespersons may not share commissions directly.

This is the correct option as it reflects the legal constraints placed on salespersons regarding commission sharing. Such practices are generally prohibited to maintain ethical standards in real estate transactions.

Conclusion

The agreement is definitively unacceptable due to the prohibition on direct commission sharing among salespersons. While options A, B, and C present various perspectives on the agreement's validity, they fail to recognize the fundamental legal restrictions that apply, making D the only correct choice.