Under California Code of Regulations, Title 10, §2725, what standard of oversight must a responsible broker exercise over the activities of the salespersons and broker-associates working under the broker's license?
A. Continuous, minute-by-minute supervision of every transaction
B. No supervision is required once a salesperson passes the state exam
C. Supervision only when a written consumer complaint is filed
D. Reasonable supervision
Show answer and reasoning
Correct answer: D. Reasonable supervision
- A: The regulation requires 'reasonable' supervision calibrated to the operation, not literal continuous monitoring of every act.
- B: Passing the licensing exam does not relieve the responsible broker of the ongoing supervisory duty.
- C: The duty to supervise is proactive and ongoing, not triggered only by a complaint.
Source: 10 CCR §2725 — a responsible broker shall exercise reasonable supervision over the activities of salespersons or broker associates acting as salespersons; https://www.law.cornell.edu/regulations/california/10-CCR-2725
Under 10 CCR §2725(a), the policies, rules, procedures, and systems a responsible broker must establish for 'reasonable supervision' are, as appropriate, directed at reviewing and overseeing which category of activity first listed in the regulation?
A. Transactions for which a real estate license is required
B. Employee parking assignments at the branch office
C. Selection of the corporation's liability insurance carrier
D. Design of the brokerage's website homepage
Show answer and reasoning
Correct answer: A. Transactions for which a real estate license is required
- B: Parking assignments are an administrative matter with no nexus to licensed activity or §2725.
- C: Insurance carrier selection is a business decision, not a supervisory duty enumerated in §2725.
- D: Website design is not among the categories of licensed-activity oversight listed in §2725(a).
Source: 10 CCR §2725(a) — reasonable supervision includes oversight of transactions requiring a real estate license; https://www.law.cornell.edu/regulations/california/10-CCR-2725
Under California Business & Professions Code §10159.2(a), who bears responsibility for supervising the salespersons licensed to a corporate real estate broker?
A. The officer designated by the corporation under §10211
B. The Real Estate Commissioner directly
C. Each individual salesperson, self-supervised
D. The corporation's registered agent for service of process
Show answer and reasoning
Correct answer: A. The officer designated by the corporation under §10211
- B: The Commissioner regulates and disciplines but is not the day-to-day supervisor of salespersons under a corporate license.
- C: The statute places supervisory duty on the designated officer, not on salespersons individually.
- D: A registered agent for service of process has no supervisory role under real estate licensing law.
Source: California Business & Professions Code §10159.2(a) — the officer designated by a corporate broker licensee under §10211 is responsible for supervision and control of the corporation's officers/employees, including supervision of salespersons licensed to the corporation; https://california.public.law/codes/business_and_professions_code_section_10159.2
A real estate corporation licensed in California has procured additional broker licenses for officers besides its §10211-designated officer. Under §10159.2(b), how may the corporation assign supervisory responsibility over its salespersons to one of these other broker-officers?
A. By a simple majority vote of the licensed salespersons
B. By an appropriate resolution of its board of directors
C. Automatically, once the additional officer's license is issued
D. Only the DRE Commissioner may reassign supervisory duty
Show answer and reasoning
Correct answer: B. By an appropriate resolution of its board of directors
- A: Salespersons have no statutory role in reassigning supervisory duty among broker-officers.
- C: Additional licensure alone does not transfer supervisory responsibility; a board resolution is required.
- D: The Commissioner receives a copy of the resolution but does not initiate the reassignment.
Source: California Business & Professions Code §10159.2(b) — a corporate broker licensee may, by board resolution, assign supervisory responsibility over salespersons to broker-officers other than the officer designated under §10211; https://california.public.law/codes/business_and_professions_code_section_10159.2
After a corporate broker's board of directors adopts a resolution assigning supervisory responsibility over salespersons to a broker-officer, what must the corporation do under §10159.2(c)?
A. Nothing further; the resolution is effective upon adoption with no filing requirement
B. Wait 90 days before the resolution takes legal effect
C. File a certified copy of the resolution with the Real Estate Commissioner within five days of adoption
D. Publish the resolution in a newspaper of general circulation within 30 days
Show answer and reasoning
Correct answer: C. File a certified copy of the resolution with the Real Estate Commissioner within five days of adoption
- A: The statute affirmatively requires filing a certified copy, so 'nothing further' is incorrect.
- B: The filing deadline is five days, not a 90-day waiting period.
- D: There is no newspaper-publication requirement in §10159.2; the statute specifies filing with the Commissioner.
Source: California Business & Professions Code §10159.2(c) — a certified copy of a board resolution assigning supervisory responsibility over salespersons must be filed with the Real Estate Commissioner within five days after adoption or modification; https://california.public.law/codes/business_and_professions_code_section_10159.2
