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Broker of record at firm with five experienced associate licensees becomes hospitalized for long-term mental health treatment. What happens to listing agreements?

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Question & Answer

Review the question and all answer choices

A

Experienced associates handle realty work

While experienced associates may have the skills to perform real estate work, they cannot legally do so without a broker's supervision. Listing agreements are contracts between the owner and the broker, not the associates. Associates cannot step into the broker's role without proper authorization.

B

Mental incapacity terminates listing agreements

Correct Answer
C

Associates continue servicing under DRE supervision

The California Department of Real Estate (DRE) does not supervise individual transactions or take over brokerage operations when a broker becomes incapacitated. The DRE regulates licensees but doesn't manage day-to-day brokerage activities or specific client relationships.

D

Associates shown as listing parties continue serving clients

Associates cannot be 'shown as listing parties' because they are not the brokers of record. Listing agreements are contracts with the broker and their brokerage firm, not individual associates. Associates work under the broker's license and authority.

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