Prompt Legality generally concerns issues in which you can't have an agreement to do something illegal,...

Prompt

Legality generally concerns issues in which you can't have an agreement to do something illegal, or perhaps against public policy(yes, this is a vague term and not published.) How does licensing protect the public's interest?

Ex. The license to practice a profession such as medicine, law, dentistry.

Try This Scenario

Ray Max gives me a call and asks me if I know of a candidate-buyer for the vacant house next door to my house. I informed my brother-in-law of the house and 'sold' him on purchasing the contract. Brother-in-law calls Max and purchases the house. Commission pays 1.5% of the purchase price of $300,000, or $4500. Max says he cannot pay me the commission as I do not have a 'license' to sell real estate.

Is he correct?
Can you assert a valid legal claim, in 'equity'(recall equity comes in to correct a bargain passing for no 'consideration', 'value', or for free, and as we know, "...there's no free lunch!" in this world.)

Expert Solution

Licensing in the form of real estate licensing or medical licenses protects society from harm by setting a barrier for entry to the market which weeds out unqualified applicants who could have harmed their customers.Licensing is also an effective tool in terms of setting standards for an occupation since most licenses require you to give a test of some sort in order to obtain them.

Max is right since state requirements for earning a real estate license may vary but all states prohibit selling property independently unless an individual possesses a broker’s license.He is under no legal obligation to pay you the commission.

Rahul Sunny answered 2 years ago

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