PSI Oklahoma Real Estate Practice Test

What requirement is mandated for each branch office in real estate?

1. There must be at least one receptionist.

2. Each branch must have a separate managing broker.

3. All branches must share one managing broker.

4. Each branch must operate under a different brokerage name.

The correct answer is: Each branch must have a separate managing broker.

Each branch office in real estate is required to have a separate managing broker to ensure compliance with state laws and regulations governing real estate practices. This requirement serves multiple purposes, primarily maintaining accountability and oversight in each location. Having a distinct managing broker for each branch ensures that there is a dedicated individual responsible for the operations, transactions, and ethical standards of that specific office. This setup also facilitates localized management that can effectively address the unique needs and characteristics of the branch's market area, ultimately improving service to clients and adherence to regulatory requirements. The other options do not align with the regulations governing real estate branch offices. For instance, having a single managing broker for multiple branches could lead to a lack of oversight and management difficulty, potentially leading to inconsistent practices across locations. Similarly, requiring a receptionist or mandating different brokerage names does not address the crucial need for direct managerial accountability within each branch office.