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Question
Salesperson Donny is licensed under Broker A at Broker A’s company and has been showing property to Buyer Jon. On December 1, 2023, Buyer Jon signs a buyer agency agreement with Broker A which names Salesperson Donny as a designated agent. On December 3, 2023, Salesperson Donny writes an offer for Buyer Jon, and it is accepted by the seller. After attending the inspections, Salesperson Donny assists Buyer Jon with successfully negotiating repairs on the property.
On December 20, 2023, Salesperson Donny is contacted by Broker B and is offered a better commission split if he joins Broker B’s company. Salesperson Donny decides to transfer his license to Broker B’s company. On the same day, Salesperson Donny submits the affiliation change to KREC in the E-Gov portal and the transfer is processed.
On January 2, 2024, Buyer Jon calls Salesperson Donny and asks for his help negotiating an appraisal gap in the transaction. Salesperson Donny and Buyer Jon meet to discuss options. Salesperson Donny drafts an amendment to the purchase contract, Buyer Jon signs it, and Salesperson Donny sends the amendment to the seller’s agent. The seller accepts the terms and signs the amendment. On January 8, 2024, the transaction closes.
Did Salesperson Donny violate Kansas law?
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Answer
Yes. Once Salesperson Donny changed affiliation to Broker B, he was no longer authorized to work on real estate activity under Broker A.
K.S.A. 58-3062(a). No licensee, whether acting as an agent, transaction broker or a principal, shall: Represent or attempt to represent a broker without the broker’s express knowledge and consent.
K.S.A. 58-3062(b)(B). No salesperson or associate broker shall: Perform any activity for which a license is required under K.S.A. 58-3036, and amendments thereto, outside the supervision of the supervising broker or branch broker…
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