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Linda is a licensed broker in New Jersey who has been operating her own independent brokerage for five years. She decides she no longer wants the administrative burden of running a firm and affiliates her license with Metro Realty NJ, working under the supervision of the principal broker there. Which of the following best describes Linda's new license status?

Correct Answer

B) Linda becomes a broker-salesperson, retaining her broker's education and license while working under supervision

Under New Jersey's three-tier licensing system, a licensed broker who chooses to work under the supervision of another broker is classified as a broker-salesperson. Linda retains the qualifications and education of a broker but operates under the authority and supervision of Metro Realty NJ's principal broker. She does not lose her broker-level credentials; she simply changes her operational status.

Answer Options
A
Linda must downgrade her license to a salesperson license to work under another broker
B
Linda becomes a broker-salesperson, retaining her broker's education and license while working under supervision
C
Linda retains her independent broker status and can still operate her own firm simultaneously
D
Linda's broker license is automatically suspended when she affiliates with another broker

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Related Topics & Key Terms

Key Terms:

broker_salespersonlicense_categoriesindependent_brokeraffiliation

Related Concepts

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

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