License Law

Broker

A licensed individual or firm authorized to operate a real estate business and employ salespersons.


Definition

In New York, a real estate broker holds a higher-level license than a salesperson and may operate independently, open a brokerage firm, and employ or supervise licensed salespersons. To qualify for a broker's license, an applicant must have at least two years of experience as a licensed salesperson (or equivalent), complete 120 hours of approved education, and pass the state broker examination. Brokers are responsible for the actions of their salespersons and must maintain escrow accounts, retain records, and comply with RPL Article 12-A.

Exam Tip

A salesperson cannot operate independently. They must work under a broker. The broker is legally responsible for the salesperson's conduct.

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