Leasing License Practice Exam

What is required in the written agreement between sponsoring brokers and licensees?

1. The licensee's marketing strategies

2. Details such as supervision and duties

3. The sponsoring broker's commission structure

4. A list of all properties handled by the licensee

The correct answer is: Details such as supervision and duties

The written agreement between sponsoring brokers and licensees must include details such as supervision and duties because it serves to clarify the professional relationship and set clear expectations for both parties. This is crucial for ensuring compliance with regulatory requirements and establishing accountability. By outlining specific responsibilities and supervisory roles, the agreement helps promote effective collaboration and mitigates potential misunderstandings that could arise during the course of their business relationship. Including such details is essential to ensure that the licensee understands their obligations and the level of oversight they can expect from the sponsoring broker. This contributes to a well-structured work environment, fostering trust and communication, which are vital in the real estate industry. While marketing strategies, commission structures, and lists of properties handled are important aspects of a real estate business, they do not focus on the foundational relationship and the everyday duties that govern the operational aspects of working under a sponsoring broker. Thus, they are not required components of the written agreement itself.