Question

if a broker terminates the employment of a salesperson, the broker must:
listings for a period of three months
notify the commission and return the salespersons license to the commission
remit all outstanding brokerage fees to the salesperson within 120 days of termination
submit an affidavit to the commission stating the reasons for the salespersons termination

Explanation:

Identify the legal requirement for license termination

Under Alabama Real Estate License Law (and general real estate licensing regulations), when a qualifying broker terminates the employment or association of a salesperson, the broker must immediately notify the Alabama Real Estate Commission in writing and return the salesperson's license to the Commission.

Evaluate the given options

• Option 1 mentions listings for a period of three months, which is incorrect.
• Option 2 states "Notify the commission and return the salesperson's license to the Commission", which directly aligns with statutory requirements.
• Option 3 mentions remitting fees within 120 days, which is not a statutory requirement for license return.
• Option 4 mentions submitting an affidavit stating the reasons for termination, which is not standard procedure for a simple termination of association.

Answer:

• (A) listings for a period of three months
• (B) Notify the commission and return the salesperson's license to the Commission (Correct answer)
• (C) Remit all outstanding brokerage fees to the salesperson within 120 days of termination
• (D) Submit an affidavit to the Commission stating the reasons for the salesperson's termination