Rhode Island License Law and DBR Regulation
Rhode Island real estate licensees are regulated by the Department of Business Regulation (DBR) through its Division of Commercial Licensing. This chapter covers the regulator, the broker-vs-salesperson distinction, and broker supervision.
The DBR and Commercial Licensing
The Rhode Island Department of Business Regulation, through the Division of Commercial Licensing, issues and disciplines real estate broker and salesperson licenses and enforces standards of conduct. Anyone who, for compensation, sells, leases, or negotiates real estate for others must be licensed unless exempt. Trade associations and municipal offices have no licensing power.
Broker vs. Salesperson
A salesperson must work under a licensed broker and cannot operate independently or hold escrow. A broker may run a brokerage, employ salespersons, and maintain the escrow account, and must carry mandatory errors-and-omissions coverage. Reaching the broker tier requires added experience and education, and the broker's independent authority is the focus of the broker exam.
Broker Supervision
The broker of record must reasonably supervise the licensed activity of affiliated salespersons, including advertising, disclosures, and handling of client funds delivered to the broker. A broker can be disciplined for failing to supervise even when a salesperson committed the underlying violation.