Real Estate Broker Licensing, Duties, and Professional Ethics
Licensing Requirements
A candidate must know who needs a licence (the brokerage firm), who must be registered (individual brokers and support staff acting in transactions), and the conditions: qualifying entity form, registered office, qualified broker of record, valid trade licence, and completion of approved training and examinations. Licences are time-limited and must be renewed; changes in ownership, address or broker of record must be notified.
Duties and Ethics
The broker owes honesty, transparency, confidentiality, competence, and disclosure of conflicts. Duties include verifying title and encumbrances, presenting offers promptly, keeping client funds separate, documenting agreements in writing, and not misrepresenting property or price. Dual agency situations (acting for both sides) require express consent and careful disclosure.
Traps in Questions
Look for scenarios where a broker withholds a competing offer to steer a sale - a breach of duty to the seller. Another trap: a broker accepting a secret payment from the buyer to hide a defect or inflate price. Also expect questions on record-keeping duration and on whether unlicensed assistants may negotiate (they may not). Ethics questions reward the answer that prioritises the client's informed interest and written disclosure.
Worked Example
A broker learns the roof leaks, the seller says "don't mention it," and a buyer asks about condition. Correct conduct: disclose the known material defect or withdraw; the duty of honesty overrides the seller's instruction, and concealment exposes both broker and seller to liability.