Broker Supervision and Office Operations (Broker Only)
The Delaware state broker exam carries a dedicated 'Broker Only' block on supervision and office operations. This chapter covers the broker's duty to supervise, responsibility for client funds, and the consequences of failing to supervise.
The Duty to Supervise
A Delaware broker must actively supervise affiliated salespersons and associate brokers and is responsible for the firm's advertising, recordkeeping, and handling of client money. The broker need not attend every closing but must maintain enough oversight that licensed activity complies with the law. This supervisory role is the central difference between the broker and salesperson tiers.
Responsibility for Client Funds
Client money such as earnest-money deposits is the responsibility of the supervising broker. A salesperson who receives a deposit must promptly deliver it so it is held in the broker's escrow/trust account, and the broker is accountable for its safekeeping and correct disbursement. Mishandling escrow money is one of the most serious violations at the broker level.
Consequences of Failure to Supervise
Because supervisory responsibility rests with the broker, a broker who fails to reasonably supervise a licensee can be disciplined for that failure even if the salesperson committed the underlying misconduct. This vicarious accountability is why the broker exam emphasizes supervision, recordkeeping, and escrow oversight. The Guaranty Fund reimburses injured consumers, not licensees.