Which of these persons would require a real estate license?

The requirement for a real estate license hinges on the nature of the activities being conducted. In this scenario, the individual who refers clients to a licensed broker and receives a fee for those referrals is engaging in a practice that falls under the purview of real estate brokerage.

Real estate licensing laws are designed to protect the public by ensuring that individuals engaged in real estate transactions are knowledgeable and adhere to professional standards. When someone receives compensation for referring clients to a broker, they are essentially acting in a broker-like capacity. This means they are involved in the business of real estate without being licensed, which is not compliant with regulatory requirements. Therefore, individuals like Jack, who receive fees for these referral services, must be licensed to perform such duties legally.

In contrast, individuals selling their own homes, relatives assisting friends with property sales, or homeowners renting out a room typically do not require a license for these actions since they are not engaging in brokerage activities for compensation or profit as an ongoing business. These instances are considered private transactions, exempt from the licensure requirement.