Real Estate · Brokerage Management

What is the broker's responsibility when supervising a newly licensed salesperson?

  1. A No additional supervision is required once the person is licensed
  2. B Actively supervise new agents: review their contracts, provide training on procedures, ensure they understand their fiduciary duties and state law, and be accessible for questions — the designated broker is vicariously liable for supervised agents' actions
  3. C Only review transactions over $500,000
  4. D Supervision is the new agent's sole responsibility after licensing

Why this is the answer

SUPERVISION OF NEW LICENSEES is a heightened obligation. The designated broker is vicariously liable for the acts of licencees under their supervision — meaning the broker can be disciplined and sued for things their agents do. For new agents specifically: provide orientation and training on brokerage procedures; review all contracts before submission; ensure new agents understand agency duties, disclosure requirements, and fair housing law; be accessible for questions; review their advertising before publication; follow up on client interactions. VICARIOUS LIABILITY: Courts have found brokers liable for their agents' misrepresentations, fair housing violations, and failure to disclose material defects — even when the broker was not personally involved, IF the broker failed to adequately supervise. This liability creates a strong incentive for active supervision.
Source: Real Estate Broker Exam, Supervision of New Agents

Practice more questions

This question is from our Real Estate License Practice Tests practice test. Take the full practice test to test your knowledge across all Brokerage Management and other topics.

Take the Broker (National) practice test →

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.