Cal. Code Regs. Tit. 10, § 2725 - Broker Supervision

Current through Register 2021 Notice, Register No. 40, October 1, 2021

A broker shall exercise reasonable supervision over the activities of his or her salespersons. Reasonable supervision includes, as appropriate, the establishment of policies, rules, procedures and systems to review, oversee, inspect and manage:

(a) Transactions requiring a real estate license.
(b) Documents which may have a material effect upon the rights or obligations of a party to the transaction.
(c) Filing, storage and maintenance of such documents.
(d) The handling of trust funds.
(e) Advertising of any service for which a license is required.
(f) Familiarizing salespersons with the requirements of federal and state laws relating to the prohibition of discrimination.
(g) Regular and consistent reports of licensed activities of salespersons.

The form and extent of such policies, rules, procedures and systems shall take into consideration the number of salespersons employed and the number and location of branch offices.

A broker shall establish a system for monitoring compliance with such policies, rules, procedures and systems. A broker may use the services of brokers and salespersons to assist in administering the provisions of this section so long as the broker does not relinquish overall responsibility for supervision of the acts of salespersons licensed to the broker.

Notes

Cal. Code Regs. Tit. 10, § 2725

Note: Authority cited: Sections 10080 and 10170.4, Business and Professions Code. Reference: Section 10177(h), Business and Professions Code.

1. New section filed 11-19-69; designated effective 1-2-70 (Register 69, No. 47).
2. Amendment filed 12-10-71; effective thirtieth day thereafter. (Register 71, No. 50).
3. Amendment filed 12-27-72; effective thirtieth day thereafter (Register 72, No. 53).
4. Repealer and new section filed 11-30-77; effective thirtieth day thereafter (Register 77, No. 49).
5. Editorial correction of History 2 and 3 (Register 95, No. 13).
6. Amendment of section heading, repealer and new section, and amendment of Note filed 11-13-96; operative 11-13-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 46).

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