Kovats Real Estate School Practice Test

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Prepare for the Kovats Real Estate School Test with comprehensive resources including flashcards and multiple choice questions. Enhance your confidence and readiness for success today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A principal broker for a corporation must be what?

Responsible for every licensee and clothed with full authority
Only responsible for agents under his direct supervision
Allowed to manage multiple companies simultaneously
Just an advisor without operational control

The correct answer is: Responsible for every licensee and clothed with full authority

The principal broker for a corporation is required to be responsible for every licensee and must be clothed with full authority. This role typically involves overseeing all activities of the real estate agents within the corporation, ensuring that they are compliant with relevant laws and regulations. The principal broker is the person legally accountable for the actions of the licensed agents and is expected to have the necessary authority to make decisions affecting the company’s operations and comply with state licensing laws. This authority is essential not only for the oversight of agents but also for the integrity and ethical standing of the corporation in the real estate market. Such a responsibility includes training agents, implementing company policies, and taking responsibility for the actions of the licensees. Being fully responsible and having the appropriate authority ensures that the principal broker can effectively manage the team, uphold the company’s reputation, and navigate any legal or compliance issues that may arise.