What is a Broker-Associate?

What is a broker associate

 

The title of “Broker Associate” is now clearly defined in the CA Business and Professions Code:

10015.3. “Broker associate” means a broker retained by a responsible broker who has authority to provide services requiring a real estate license on behalf of the responsible broker.

The Department of Real Estate allows a broker associate to work under the license of a responsible broker of record. When this type of relationship is formed, the broker associate is essentially working for the broker of record in the same capacity as someone who holds a real estate salesperson’s license. The broker of record is the party responsible for the supervision of the broker associate as well as the retention of records generated by the broker associate while engaged in activity as a broker associate.

Compliance requirements:

In accordance with Business and Professions Code 10161.8 – the following is required:

  1. Whenever a real estate salesperson or broker acting as a salesperson enters the employ of a real estate broker, the responsible broker shall immediately notify the commissioner thereof in writing. SEE DRE Form 215 -and-
  2. Whenever employment of a real estate salesperson or broker acting as a salesperson is terminated, the responsible broker shall immediately notify the commissioner of that termination in writing.

The Regulations of the Real Estate Commissioner (at section 2726) require that every real estate broker shall have a written agreement with each of his salesmen, whether licensed as a salesman or as a broker under a broker-salesman arrangement. The agreement shall be dated and signed by the parties and shall cover material aspects of the relationship between the parties, including supervision of licensed activities, duties and compensation.