A California designated broker dies unexpectedly, leaving three associate licensees and several active listings. Under California law, what is the most accurate statement regarding the brokerage's operations following the broker's death?
Correct Answer
B) The DRE may authorize a temporary continuation period of up to 90 days for the estate or designated officer to wind down operations or appoint a new qualifying broker
Under California Business and Professions Code §10159.2 and related DRE regulations, when a designated broker dies, associate licensees cannot perform licensed activities without a supervising broker. However, the DRE has provisions allowing a temporary continuation period — typically up to 90 days — during which the estate or a designated officer may wind down operations or install a new qualifying broker. Operations do not automatically continue, nor do they automatically and immediately cease with no recourse; the DRE's temporary continuation framework governs the transition.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
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An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
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