Free practice questions · Broker Qualifying
Supervising Salespersons Practice Questions
Broker of record duties, salesperson oversight, and vicarious liability. Below are 5 free sample questions from our 54-question Supervising Salespersons bank. Each comes with the correct answer and a full explanation.
Question 1 of 5
When a salesperson leaves a brokerage, what happens to their active transaction files?
- AThe transaction files remain with the brokerage, and the broker of record must ensure continuity of service for affected clients
- BThe files belong to the salesperson and they take them to their new brokerage
- CAll active transactions are automatically cancelled when a salesperson leaves
- DThe files are sent to RECO for safekeeping during the transition
Why A is correct
The departure of a salesperson creates several obligations for the broker of record: ensuring all active transaction files remain with the brokerage, notifying affected clients and ensuring continuity of service, reassigning active transactions to other qualified registrants, processing the registration release through RECO, and addressing any outstanding compliance issues. The brokerage must also retain the departing salesperson's files for the required retention period. Clear procedures for salesperson departures should be part of the brokerage's policies.
Question 2 of 5
Under TRESA, what is the role of the broker of record in a brokerage?
- AThe individual registered with RECO who is responsible for the brokerage's compliance with TRESA and who has authority over all registrants
- BAn honorary title given to the brokerage's highest-earning salesperson
- CA government-appointed inspector who audits the brokerage quarterly
- DAn external consultant who provides compliance advice to the brokerage
Why A is correct
The broker of record is the central regulatory figure in a brokerage. TRESA places personal responsibility on this individual for the brokerage's compliance. They must hold a broker registration (not just a salesperson registration), be registered with RECO as the broker of record for that specific brokerage, and actively manage compliance. A brokerage cannot operate without a designated broker of record.
Question 3 of 5
Hassan, the broker of record, receives complaints from multiple clients about a salesperson's unprofessional conduct, including aggressive sales tactics and failure to return calls. Despite warnings, the behaviour continues. What is the MOST appropriate escalation path?
- AIgnore the complaints as they relate to personal style differences between the salesperson and clients
- BReduce the salesperson's commission split as punishment
- CImmediately file a RECO complaint against the salesperson without first attempting internal resolution
- DDocument the pattern of complaints, issue a formal written warning with specific improvement requirements, and if the behaviour continues, consider termination and notify RECO of the conduct concerns
Why D is correct
Managing registrant conduct requires a fair, documented, and escalating process. The broker of record should: investigate each complaint thoroughly, meet with the salesperson to discuss the concerns, provide clear written expectations for improvement, implement enhanced supervision during the improvement period, and escalate to formal disciplinary action (including potential termination) if improvement does not occur. Throughout this process, the broker of record must document every step. If the conduct suggests a risk to the public, RECO notification is appropriate.
Question 4 of 5
Marina, the broker of record, wants to implement a social media policy for her brokerage. Which of the following provisions would BEST protect the brokerage from regulatory risk?
- ABanning all salespersons from using social media for business purposes
- BRequiring salespersons to only share posts from the brokerage's official account
- CAllowing salespersons to post whatever they want as long as they include a disclaimer that views are their own
- DRequiring all social media posts related to real estate to include the brokerage name, be accurate, and not make claims about guaranteed outcomes
Why D is correct
A comprehensive social media policy should cover: brokerage identification requirements, accuracy and truthfulness standards, prohibited content (misleading claims, competitor disparagement, guaranteed outcomes), privacy considerations (client consent before posting testimonials or property information), response protocols for negative comments, platform-specific guidelines, record retention for social media communications, and consequences for non-compliance. The policy should be provided to all registrants and updated regularly to address emerging platforms and trends.
Question 5 of 5
A buyer client tells their salesperson that they are willing to pay up to $700,000 for a property but wants to start with an offer of $620,000. The brokerage is in a multiple representation situation. Can the salesperson share the buyer's maximum price with the listing salesperson?
- AYes — since both salespersons work for the same brokerage, they must share all information
- BNo — the buyer's maximum acceptable price is confidential information that must not be disclosed to the other party or their representative, even within a multiple representation situation
- CYes — but only if the buyer's maximum price is higher than the listing price
- DYes — if the broker of record authorizes the disclosure in writing
Why B is correct
In multiple representation situations, certain information must remain confidential unless the client specifically consents to its disclosure. This includes: the buyer's willingness to pay more than the offer price, the seller's willingness to accept less than the listing price, any personal motivations for buying or selling (e.g., divorce, financial distress), and any other information that could disadvantage the client if disclosed. The broker of record must train registrants on what constitutes confidential information and implement procedures to prevent inadvertent disclosure.
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