EstatePass
Practice Of Real EstateLicense LawHARD

Broker Alan operates a Maryland real estate brokerage. He wants to open a second office location in a different county. Under Maryland law, which of the following is required for the branch office?

Correct Answer

B) The branch office must be registered with MREC, and a licensed broker must be designated to supervise the branch office operations.

Under Md. Code Ann., Bus. Occ. & Prof. § 17-402 and MREC regulations, a broker who opens a branch office must register the branch with MREC. Additionally, each branch office must have a licensed broker designated as the branch manager responsible for supervising the licensees operating out of that location. The branch operates under the primary brokerage license but must be separately registered.

Answer Options
A
The branch office must obtain its own separate broker license, independent of Alan's primary brokerage license.
B
The branch office must be registered with MREC, and a licensed broker must be designated to supervise the branch office operations.
C
The branch office requires only a business license from the county government; no additional MREC registration is needed.
D
Alan may operate the branch office under his existing license with no additional registration, provided it is in the same state.

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

branch_officeMREC_registrationdesignated_brokerbrokerage_operations

Related Concepts

A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.

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.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing