Who may supervise a real estate salesperson's activity in conducting licensed real estate transactions?

Only an actively licensed BROKER (not another salesperson, not an inactive broker) may supervise salespersons and associate brokers. State licensing laws structure this with specific titles, including: DESIGNATED BROKER (the broker formally designated to supervise — common in states like California, Washington); MANAGING BROKER (common in many states); BROKER-IN-CHARGE (BIC) (common in some states like North Carolina, South Carolina); QUALIFYING BROKER (common in Texas, Arkansas); PRINCIPAL BROKER. Regardless of title, the supervisory broker must: (1) Hold an active broker's license in good standing; (2) Be designated to a specific brokerage office (some states limit one broker per office); (3) Be actually available to supervise — not just have their name on the license; (4) Carry the formal responsibility set in state law. A salesperson CANNOT supervise another salesperson, even if more experienced or holding a 'team lead' or similar internal role.

Team arrangements: Within many states, a team led by a salesperson is permitted, but ultimate supervision remains with the broker. The team lead can mentor and coordinate but cannot serve as the supervising broker.

Broker status requirements: The supervisor must typically be on ACTIVE status (not inactive, expired, suspended). Continuing education must be current. Some states require a separate 'broker-of-record' designation. Some states require minimum years of experience before becoming a designated broker. If a brokerage's designated broker leaves, the brokerage typically has a short period (often 30-90 days) to designate a new broker or the brokerage cannot operate.

Associate brokers: Hold broker's licenses but work UNDER another broker rather than as the designated broker. They may have additional responsibility under state law and may sometimes supervise salespersons within a team structure depending on state.