Branch Offices and Office Managers: Supervision and Display Rules
Branch office questions test supervision and registration mechanics. The main office and each branch must be licensed and registered with DOS, and each must be under the supervision of a licensed broker.
Branch office requirements. Before opening a branch, the broker must notify DOS and obtain the branch license; the branch must have a licensed broker in charge (the branch manager or an associate broker designated as manager). Advertising and signage must identify the branch appropriately. A trap: assuming a second location can operate under the main office license while paperwork is pending. It cannot - the branch license must be issued first.
Office manager. The manager must hold a broker license (a salesperson cannot manage an office). The manager's responsibilities include supervising licensees, ensuring agency disclosures and SOPs are followed, reviewing advertising, overseeing escrow handling, and maintaining records. Where the manager is an associate broker, they act under the authority of the principal broker, who remains ultimately responsible.
Display and records. Licenses must be displayed as required, and the office must maintain records - transaction files, agency disclosure forms, and escrow records - available for DOS inspection. Escrow accounts are subject to specific handling rules; commingling is prohibited.
Supervision liability. The principal broker is answerable for the office's compliance. A common exam pattern: an unlicensed assistant or unsupervised salesperson commits an error, and the question asks who is responsible. The answer typically traces to the supervising broker.
Rule of thumb: every location = licensed + registered + a broker in charge. If any of the three is missing, the office is not compliant.