Rhode Island Real Estate Broker Exam — All Questions
3 questions
Which state entity licenses and regulates real estate brokers in Rhode Island?
- a.The Rhode Island Secretary of State
- b.The Department of Business Regulation (DBR), Division of Commercial Licensing✓
- c.The Rhode Island Association of Realtors
- d.The city or town tax assessor
Real estate brokers and salespersons in Rhode Island are licensed and regulated by the Department of Business Regulation (DBR) through its Division of Commercial Licensing. The DBR issues and disciplines licenses and enforces the standards of conduct. A trade association and municipal offices have no licensing authority.
In Rhode Island, the legal distinction between a salesperson and a broker is that only a broker may:
- a.Show property to buyers
- b.Complete continuing education
- c.Attend a closing
- d.Operate independently, run a brokerage, and hold client funds in an escrow account✓
A Rhode Island 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. This independent and fiduciary authority, along with mandatory errors-and-omissions coverage, is central to the broker license.
A Rhode Island broker who supervises affiliated salespersons is responsible for:
- a.Reasonably supervising their licensed activity and the firm's compliance with Rhode Island law✓
- b.Only the salespersons who ask for help
- c.Nothing once each salesperson is licensed
- d.Guaranteeing every listing sells within 30 days
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 failure to supervise even when a salesperson committed the underlying violation.