Broker Michael Torres operates a real estate brokerage in St. Louis. He wants to open a branch office across town managed by his top salesperson, Carla Simmons. Under Missouri law, what is required for the branch office to legally operate?
Correct Answer
B) Michael must designate a licensed broker to serve as the branch office manager of record
Under Missouri law and MREC rules, each branch office of a brokerage must be managed by a licensed broker designated as the branch manager of record. A salesperson, regardless of experience or skill, cannot legally manage a branch office. Michael must designate a licensed broker — which could be himself or another licensed broker — to oversee the branch office operations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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