Supervision of Affiliated Licensees and Teams
Supervision is the heart of the managing broker role and is weighted more heavily on this exam than on the plain broker exam. This chapter covers the managing broker's duty to oversee affiliated licensees and real estate teams.
The Duty to Supervise
A Washington managing broker must reasonably supervise the affiliated licensees under the firm. That means adopting and enforcing office policies, reviewing transactions and advertising, and ensuring records and client funds are handled according to RCW 18.85 and WAC 308-124. Supervision cannot be delegated away; a failure to reasonably supervise is itself a ground for discipline.
Supervision of Teams
Washington treats real estate teams as part of the firm, not as independent businesses. A managing broker must supervise team names, advertising, disclosures, and conduct so they comply with firm policy and Washington law. Teams may not operate their own trust accounts or present themselves as a separate licensed firm. This team-supervision content is a distinctive emphasis of the managing broker exam.
Managing Broker vs. Plain Broker Weighting
The managing broker exam devotes more items to supervision (about 18) than the plain broker exam (about 13), reflecting the higher responsibility of the role. Candidates should expect questions that ask what a supervising managing broker must do when an affiliated licensee or team makes an error, advertises improperly, or mishandles funds.