California Broker Supervision and Qualification
The California broker is responsible for supervising employed salespersons and must meet a demanding experience-and-education path. This chapter covers Regulation 2725 supervision, the qualifying path, and broker accountability.
Reasonable Supervision (Reg 2725)
Commissioner's Regulation 2725 requires the employing broker to exercise reasonable supervision over affiliated salespersons, including written policies, rules, and procedures and review of transactions, advertising, and trust-fund handling. The broker need not negotiate every deal, but failure to supervise is a distinct basis for DRE discipline.
The Qualifying Path
Broker applicants must show at least 2 years of full-time licensed salesperson experience within the prior 5 years, or an equivalent such as a qualifying 4-year degree, plus 8 statutorily required college-level real estate courses. This is far more demanding than the salesperson requirement.
Broker Accountability
A salesperson acts on behalf of the employing broker, who is accountable to the public and the DRE for the salesperson's licensed conduct. The broker must maintain a written agreement with each salesperson and supervise their work. Even if a salesperson is an independent contractor for tax purposes, the broker remains responsible under the Real Estate Law.