Question

A broker operates an office in a town on the state line. A buyer from the adjoining state wants to see homes on both sides of the border. In this case, the broker:__________a. may operate in both states since the market's boundaries overlap state lines.b. may not show the buyer homes in the other state without a non-resident license.c. may show homes in the other state so long as the closing takes place in his home state.d. may not show homes in the other state unless accompanied by a licensee from that state.

Answer 1

Answer:

In this case, the broker:

b. may not show the buyer homes in the other state without a non-resident license.

Explanation:

A state line is a boundary that defines one state from another. States are defined by the state line that encloses them.All states in the United States have specific rules that govern their social, political and economic welfare. Conducting a business in a state requires that one has to firstly get information on the laws that regulate business activities in the area. The most common document that one needs to operate a business in any given state is a business license. The business license gives one the legal right to conduct his/her duties in the particular state.

Operating in a state has to be understood before determining whether or not one will need some kind of legal right to conduct his/her business. The requirements for one to qualify as operating in a state are;

1. When one owns property in that state.

2. Having facilities in that state where formal meetings regularly take place

3. Selling in the state using a party directly related to your business

4. When an individuals owns a bank account in that state

In our case, since the brokers action can be termed as business related and he/she is not a resident of any of the adjoining states, the broker has to have a non-resident license to show the buyer homes in those states.