What happens if an unlicensed person attempts to file a suit for a commission on a real estate transaction?

Prepare for the AREC Arkansas Broker Exam. Study with flashcards and multiple choice questions, each question offers hints and explanations. Get ready for success!

When an unlicensed person attempts to file a suit for a commission on a real estate transaction, the action would not be accepted by the court. This is because, in most jurisdictions, only licensed real estate professionals have the legal standing to sue for a commission related to real estate transactions. The rationale behind this is that commissions are tied to the performance of licensed activities, which unlicensed individuals are not authorized to conduct.

Real estate laws are designed to protect consumers by ensuring that only qualified and regulated individuals engage in real estate activities. Therefore, an unlicensed person's claim for a commission would lack the legal foundation required for the court to hear the case. Courts typically enforce these regulations strictly to uphold the integrity of the real estate profession and to prevent unqualified individuals from engaging in potentially fraudulent or unethical practices.

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