Necessity of alleging license in action to collect compensation. (1) A real estate broker or principal real estate broker conducting professional real estate activity within this state may not bring or maintain any action for the collection of compensation without alleging and proving that the individual was a real estate licensee when the alleged cause of action arose

(2) An action for collection of compensation from a client for professional real estate activity conducted by a real estate licensee associated with a managing principal broker may not be brought or maintained except by the managing principal broker with whom the real estate licensee was associated when the alleged cause of action arose. [Amended by 1981 c.617 §32; 1991 c.5 §44; 2001 c.300 §43; 2007 c.319 §18; 2017 c.234 §26; 2025 c.389 §27]