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Broker Licenses, Company Licenses Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
A broker must keep transaction records for how many years after closing, unless otherwise stated by law?
- One year
- Five years
- Seven years
✔✔B. Three years
Which of the following is a legal requirement for opening a brokerage firm?
- Hiring at least one agent
- Leasing a physical office
- Owning a real estate school
✔✔C. Holding an active broker’s license
Who is ultimately responsible for the supervision of sponsored sales agents?
- The office manager 1 / 3
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✔✔B. The principal broker
- The board of REALTORS®
- The transaction coordinator
A broker may disburse earnest money from a trust account only:
- With the buyer’s written permission
- At the close of escrow
- When the seller requests
✔✔B. According to the terms of the contract or written agreement
If a brokerage changes its business address, what must the broker do?✔✔A. Notify the real estate commission or licensing authority
- Issue new business cards immediately
- Hold all transactions until notice is filed
- Inform their bank and escrow company only
What is **commingling** in real estate brokerage?✔✔A. Mixing client funds with the broker’s personal or business funds 2 / 3
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- Refusing to pay a referral fee
- Advertising a property without owner consent
- Overpricing listings to gain higher commissions
Which of the following best describes a **designated broker**?
- A licensee responsible for client marketing
- A broker who only manages rentals
- An agent appointed as team leader
✔✔B. The individual responsible for the brokerage’s legal compliance
What is the purpose of **errors and omissions (E&O) insurance** for brokers?✔✔A. To protect against claims of negligence or mistakes
- To cover property damage during showings
- To insure the agent’s personal belongings
- To replace health insurance for employees
What must be included in all real estate advertisements by a broker?✔✔A. The licensed brokerage name
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