Broker Chen employs three salespersons and operates a branch office in Lawrence managed by salesperson Kim, who holds a branch broker designation. Broker Chen's primary license is revoked by KREC following a disciplinary hearing. Which of the following best describes the effect on Kim's branch broker designation and the Lawrence office under Kansas law?
Correct Answer
B) Kim's branch broker designation is automatically suspended because it is tied to the employing broker's license, and the office may not continue operations under Kim alone
Under the Kansas Real Estate Brokers' and Salespersons' License Act, a branch broker designation is not an independent license — it authorizes the holder to manage a branch office on behalf of a specific employing broker. When the employing broker's license is revoked, the branch broker's authority to operate that office on the broker's behalf is also extinguished. Kim cannot independently operate the office or supervise salespersons without a sponsoring broker with an active license. The salespersons in the office also lose their ability to practice until they affiliate with a new licensed broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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