Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementEasy
A licensed Florida real estate broker is operating a sole proprietorship brokerage. The broker decides to take a two-month sabbatical and will be completely out of contact. What is the appropriate action the broker must take regarding the brokerage operations during this period?
- ATemporarily transfer all listings and buyer agreements to another brokerage for the duration of the sabbatical.
- BAppoint a temporary broker to manage the office and sign all necessary documents.
- CClose the brokerage entirely, as a sole proprietor cannot delegate supervisory responsibilities.
- DNotify the Department of Business and Professional Regulation (DBPR) of their absence and designate a sales associate to handle routine tasks.
Show answer & explanationAnswer & explanation
Correct answer: C. Close the brokerage entirely, as a sole proprietor cannot delegate supervisory responsibilities.
A sole proprietorship brokerage is tied directly to the individual broker's license. If the sole proprietor is unable to perform their duties for an extended period, especially one where they are out of contact, the brokerage essentially ceases to function legally and must be closed.
Why the other options are wrong
- A. Transferring listings is not a legal solution for the continued operation of a sole proprietorship during the broker's absence.
- B. A temporary broker cannot be appointed to manage a sole proprietorship, as the license is personal to the owner.
- D. Notifying DBPR and designating a sales associate is insufficient; a sales associate cannot supervise or assume broker responsibilities.
Sole Proprietorship Broker Absence
If a sole proprietor broker is unable to perform their duties, especially for an extended period, the brokerage cannot legally operate and must be closed.
- Brokerage is personal to the sole proprietor.
- No delegation of broker-level responsibilities.
- Extended absence requires closure of the business.
Memory trick: The solo pilot needs to land the plane if they can't fly it themselves.