California Real Estate Broker Exam — All Questions

Under Commissioner's Regulation 2725, a California broker who employs salespersons must:

• a.Personally negotiate every transaction
• b.Guarantee each salesperson a salary
• c.Exercise reasonable supervision over the activities of the salespersons, including written policies and review of transactions✓
• d.Hold a separate license for each salesperson

Regulation 2725 requires the employing broker to exercise reasonable supervision over affiliated salespersons, which includes establishing written policies, rules, and procedures and reviewing transactions, advertising, and trust-fund handling. The broker need not negotiate every deal or guarantee salaries. Failure to supervise is a distinct basis for DRE discipline against the broker.

To qualify for the California broker examination, an applicant generally must have:

• a.No experience, just a high school diploma
• b.At least 2 years of full-time licensed salesperson experience within the prior 5 years (or an equivalent qualification such as a 4-year degree) plus 8 statutorily required college-level real estate courses✓
• c.One 45-hour course and nothing else
• d.A contractor's license

California 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, and must complete 8 statutorily required college-level real estate courses. This experience-plus-education path is far more demanding than the salesperson requirement of a few courses.

A California broker who employs a salesperson must keep the employment relationship documented and is responsible for the salesperson's licensed acts because:

• a.The salesperson is an independent contractor for all legal purposes
• b.The DRE never reviews broker files
• c.The salesperson holds the trust account personally
• d.The salesperson acts on behalf of the broker, and the broker is accountable to the public and the DRE for that activity✓

In California 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. The salesperson does not hold the trust account, and even if treated as an independent contractor for tax purposes, the broker remains responsible under the Real Estate Law.