State Laws Partnership/Corporation Registered as a Brokerage Form True/False

Question 1

The sole officer of a corporation licensed as a broker failed to renew his broker license. The corporate registration is canceled automatically.

Answer 1

True:
14 days to find a replacement

Question 2

The sole broker partner failed to renew his broker license. The partnership registration is automatically revoked.

Answer 2

True:
14 days to replace with a new broker

Question 3

A licensed sales associate may be a limited partner in a real estate brokerage limited partnership.

Answer 3

True

Question 4

A licensed sales associate may be a shareholder in a real estate brokerage corporation.

Answer 4

True

Question 5

A licensed sales associate may be an officer or director of a real estate brokerage corporation.

Answer 5

False

Question 6

A licensed broker associate may be a partner in a real estate brokerage partnership.

Answer 6

False

Question 7

A licensed broker associate may be a limited partner in a real estate brokerage limited partnership.

Answer 7

True

Question 8

All officers & directors of a real estate brokerage corporation who will provide real estate services must be licensed real estate brokers.

Answer 8

True

Question 9

All officers & directors of a real estate brokerage corporation must be licensed as brokers.

Answer 9

False:
At least one officer licensed as broker

Question 10

The conduct of two or more persons creates the “appearance” that a real estate brokerage partnership exists. This is known as ostensible (quasi) partnership.

Answer 10

True

Question 11

If an ostensible partnership exists, law requires that it either be dissolved or an actual partnership created & registered as a real estate brokerage partnership.

Answer 11

True

Question 12

In order for a real estate brokerage partnership to become registered, all partners who will provide real estate services must be licensed brokers.

Answer 12

True

Question 13

Two or more brokers may share the same office space provided it is clear to the public that they are separate.

Answer 13

True

Question 14

Three individuals have formed a partnership to open a real estate company. One partner must be a broker, one must be a sales associate, & one must be a broker associate.

Answer 14

False

Question 15

Example: Three individuals have formed a partnership to open a real estate company. One partner must be a broker, one must be a sales associate, & one must be a broker associate. (Answer: False)

Using the example above, one partner must be a licensed broker & none of the partners may be a sales associate.

Answer 15

True

Question 16

In a partnership operating as a brokerage, all partners must be brokers.

Answer 16

False:
One partner must be a broker

Question 17

James is the only officer licensed as a broker for ABC Brokerage, Inc. James terminates his license & resigns on the same day. The corporation has 14 days to fill the position vacated by James.

Answer 17

True

Question 18

In the scenario above, until the position is filled, the registration of ABC Brokerage is canceled.

Answer 18

True