Under Commissioner's Regulation 2725, a responsible broker must exercise reasonable supervision by establishing policies, rules, procedures and systems for the brokerage. Which of the following most accurately describes the areas those policies must cover?
Correct Answer
C) Trust fund handling procedures, advertising compliance, supervision protocols, and fair housing obligations, among other operational topics
Commissioner's Regulation 2725 makes reasonable supervision the responsible broker's own obligation and lists what the broker's policies, rules, procedures and systems must reach: transactions requiring a license, documents that may have a material effect on the rights or obligations of a party, the filing and storage of those documents, the handling and documentation of trust funds, advertising of services requiring a license, familiarizing salespersons with federal and state laws against discrimination, and regular and consistent reports of the licensed activities of salespersons. The form and extent of those systems vary with the number of salespersons and offices, but no listed area may simply be left out. Delegating day-to-day oversight to an office manager does not relieve the responsible broker of the duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
A stigmatized property is one that has an undesirable reputation due to events that occurred on the property or nearby, such as a murder, suicide, alleged haunting, or proximity to a registered sex offender. The stigma is psychological, not physical.
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Most common business structure for one individual:
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