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Practice Of Real EstateLicense LawHARD

Broker Alice operates a Massachusetts real estate brokerage and wants to establish a branch office in a neighboring city. She plans to have her licensed salesperson, Ben, manage the branch office on a day-to-day basis. Under Massachusetts law, which of the following is the correct requirement for the branch office?

Correct Answer

B) The branch office must be supervised by a licensed broker, and Ben must obtain a broker license before he can manage the branch office

Under Massachusetts law, each place of business where real estate activities are conducted must be under the supervision of a licensed broker. A salesperson, regardless of experience or seniority, does not have the authority to manage a branch office. Ben must obtain a Massachusetts broker license before he can serve as the responsible broker in charge of the branch office. This is a Massachusetts-specific requirement that ensures proper supervision at each physical location.

Answer Options
A
The branch office may be managed by Ben as a licensed salesperson, provided Alice registers the branch location with the Board of Registration
B
The branch office must be supervised by a licensed broker, and Ben must obtain a broker license before he can manage the branch office
C
The branch office does not require separate registration with the Board as long as it operates under Alice's existing broker license
D
The branch office must obtain its own independent broker license separate from Alice's existing license

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Related Topics & Key Terms

Key Terms:

license_categoriesbranch_officebroker_supervisionoffice_registration

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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