Broker Supervision, Escrow, and Regional Licensing
DC brokers supervise sponsored licensees, hold client funds, and often work across the DC–Maryland–Virginia region. This chapter covers supervisory duties, escrow handling, the separate property manager license, and regional licensure.
Supervisory Responsibility
A DC broker is responsible for supervising the licensed conduct of sponsored salespersons, including their advertising, recordkeeping, and escrow handling, and can be disciplined for supervisory failures. The broker need not negotiate every deal but must maintain enough oversight to ensure the office follows the law. Agreeing on commission rates with competing firms would be illegal price-fixing.
Escrow and the Property Manager License
Client money such as earnest money must be held in a separate escrow/trust account, recorded, and never commingled with firm funds. The District also maintains a distinct Property Manager license; managing others' rental property for compensation may require that credential in addition to, or instead of, a broker license. Brokers should confirm which activities the property manager license covers.
Regional (DC–MD–VA) Licensing
A DC license does not automatically authorize practice in Maryland or Virginia. Because the metropolitan market spans three jurisdictions, brokers often hold licenses in more than one, using reciprocity or meeting each jurisdiction's requirements. Practicing across the line without proper licensure is unlicensed activity.