21. A broker lives in a city but has many listings in a resort area 75 miles away. For the sake of convenience, she opens a small branch office in the resort area with one salesperson assigned to the new office. The broker acts as the supervising broker. She is in regular contact with the salesperson as well as visiting the new office every 2 weeks to handle closings. Is this arrangement permissible under Missouri license law?
Answer: A
Yes, because the branch office is under the direct supervision of a licensed broker.
The arrangement is permissible under Missouri license law as the branch office is directly supervised by a licensed broker, ensuring compliance with regulatory requirements.
A) Yes, because the branch office is under the direct supervision of a licensed broker.
This option is correct because Missouri license law allows a broker to establish a branch office as long as it is under the direct supervision of a licensed broker. In this case, the broker maintains regular contact and visits the office biweekly, which demonstrates adequate oversight.
B) Yes, because the salesperson does not handle any closings personally.
While the salesperson's role in handling closings may contribute to the broker's ability to supervise effectively, this option does not address the fundamental requirement of direct supervision by a licensed broker. Therefore, it does not fully justify the permissibility of the branch office under Missouri law.
C) No, because the broker has only nominal control over the branch office.
This option is incorrect. The broker's regular contact and biweekly visits to the branch office indicate more than nominal control. Active engagement and oversight fulfill the necessary supervisory requirements.
D) No, because a broker can only handle closings for transactions in which she was the selling agent.
This statement misinterprets the broker's responsibilities. A broker can oversee closings even if she is not the selling agent, provided she maintains appropriate supervision over her branch office and the activities therein.
Conclusion
The correct answer is A, as it highlights the essential aspect of direct supervision by a licensed broker, which is a requirement under Missouri license law for branch offices. Options B, C, and D fail to recognize the importance of direct oversight and the broker's active role in managing the branch office, thereby making them incorrect.