What action regarding fees or commissions can lead to losing your real estate license?

Inducing someone to alter another licensee's fee or commission is an action that can lead to losing your real estate license because it violates ethical standards and professional conduct regulations within the real estate industry. Real estate professionals are bound by laws and regulations that promote fairness and transparency. Attempting to manipulate or coerce another licensee to change their established fees undermines these principles.

Such conduct is considered detrimental to the integrity of the profession, as it not only affects the relationship between agents but can also harm consumers and the market as a whole. Regulatory bodies take these violations seriously, as they can create unfair competitive practices and disrupt healthy market operations, leading to potential disciplinary actions, including the loss of a real estate license.

On the other hand, changing your fee structure annually, offering reduced rates to clients, and negotiating commission splits are generally acceptable practices as long as they are done transparently and within the bounds of the law and established brokerage policies. These actions allow for flexibility and competitiveness in the marketplace without breaching ethical standards.