New York State Real Estate Salesperson Licensing Exam

What is a restriction that salespersons must adhere to regarding client payments?

1. They cannot negotiate commission rates

2. They can collect money directly from the client or customer

3. They must always provide discount offers

4. They cannot collect money directly from the client or customer

The correct answer is: They cannot collect money directly from the client or customer

Salespersons are prohibited from collecting money directly from clients or customers due to the regulations set forth by the New York State Department of State, which oversees real estate practices. This rule is in place to maintain a clear separation of responsibilities and to ensure that all financial transactions are handled through the broker. This requirement protects clients and fosters trust in the real estate transaction process. The underlying principle is that all funds related to a real estate transaction, including deposits, earnest money, and other payments, should be processed through the broker's trust account. This ensures that the funds are managed appropriately, safeguarding the clients' money until it is due or until closing, thus avoiding any potential misuse or misappropriation of funds by individual salespersons. The other options do not align with real estate regulations in New York. Salespersons are allowed to negotiate commission rates, but any agreements must be documented and approved by their broker. There is no requirement for them to always provide discounts, as this is a business decision left to the brokerage.