For a business entity licensed as a broker, what is required?

In the context of real estate brokerage, a business entity must have a licensed broker who serves as the broker of record. This individual is the person responsible for the operations of the brokerage and ensures compliance with all state regulations. The broker of record plays a crucial role in overseeing the actions of all agents affiliated with the brokerage, maintaining the integrity and ethical standards of the operation.

Having a licensed broker as the broker of record is a fundamental requirement because it establishes accountability and authority within the brokerage. This broker must meet specific licensing criteria and is often responsible for managing transactions, maintaining trust account records, and ensuring that all agents adhere to real estate laws and practices.

While it may be beneficial for a business entity to have licensed agents and ensure they are supported by licensed assistants, these factors do not substitute for the requirement of having a licensed broker as the broker of record. Moreover, partnering with unlicensed individuals does not align with the legal requirements, as the law mandates that the brokerage must operate under the supervision of a licensed professional to safeguard clients and uphold industry standards.