A newly licensed salesperson at a Georgia brokerage asks the broker whether each agent in the office can create their own individual procedures for handling trust funds, maintaining transaction files, and reviewing advertisements. Which statement best describes the broker's supervisory obligations under GREC rules?
Correct Answer
A) The broker must establish office-wide policies and procedures governing trust account management, advertising compliance, and record retention for all affiliated licensees to follow.
Under GREC License Law and Rules (O.C.G.A. § 43-40-18 and GREC Rule 520-1-.07), the broker bears active supervisory responsibility over all affiliated licensees. This includes establishing and enforcing firm-wide policies and procedures for trust account handling, advertising compliance, and transaction record retention. Brokers cannot delegate this responsibility to individual agents to self-regulate.
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