Which of the following is true about personal real estate corporations (PRECs) under RESA?
Correct Answer
B) A PREC must be licensed, and the licensee remains personally responsible for RESA compliance
Under RESA, a personal real estate corporation (PREC) must be licensed, and the individual licensee who provides services through the PREC remains personally responsible for ensuring compliance with RESA and BCFSA rules. The PREC structure does not shield the licensee from professional regulatory obligations.
Why This Is the Correct Answer
Option B is correct because under RESA, a PREC must be licensed with BCFSA, and the individual licensee who provides services through the PREC remains personally responsible for compliance with RESA and BCFSA rules. The PREC is a corporate vehicle for receiving compensation, but it does not transfer or dilute the licensee's personal professional obligations.
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