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Practice Of Real EstateLicense LawMEDIUM

A Massachusetts real estate broker, Patricia, is the sole owner and operator of a licensed brokerage. She becomes seriously ill and is hospitalized for an extended period, making it impossible for her to supervise her affiliated salespersons. Under Massachusetts law, what is the most appropriate course of action to allow the brokerage to continue operating legally?

Correct Answer

B) The Board of Registration may appoint a temporary supervising broker to allow the brokerage to continue operating during Patricia's incapacity

Under Massachusetts law, when a sole broker becomes incapacitated, the Board of Registration has authority to address the situation to protect consumers and allow for orderly continuation or wind-down of brokerage operations. The Board may appoint or approve a temporary supervising broker arrangement. Salespersons cannot independently operate without a supervising broker, so a formal mechanism must be used to ensure continued legal operation.

Answer Options
A
The salespersons may continue operating the brokerage independently, since they are licensed professionals
B
The Board of Registration may appoint a temporary supervising broker to allow the brokerage to continue operating during Patricia's incapacity
C
The brokerage must immediately cease all real estate activities until Patricia is able to return and resume supervision
D
Any one of the affiliated salespersons may automatically assume broker responsibilities for up to 180 days without Board approval

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Related Topics & Key Terms

Key Terms:

license_categoriesbroker_supervisionbrokerage_operationsboard_authority

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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