A broker-officer is required for a brokerage to be incorporated. Each office must have a broker of record on file, and the main location must have a copy of all real estate agents’ licenses.
The license to be an individual broker and the license to be a broker-officer are distinct entities, meaning that the qualification of one does not qualify for the other.
Broker-Officer Duties to Corporation:
There must be at least one broker of record who is called the broker-officer.
In the state of California, real estate professionals must submit the following to the DRE to file as a corporation:
License Fee: A licensing fee is applied to every broker-officer to be licensed with the corporation. For exact fee amounts, refer to relevant government website (fees vary by state).
Corporation License Application: The corporation license application is required to be completed by the specific broker-officer acting on behalf of the corporation.
Corporation Background Statement: The broker-officer who acquires the license or any broker-officer who joins later to act on behalf of the corporation is required to file a corporation background statement for: directors, chief executive officer, president, vice presidents, chief financial officer, and any other officer along with any other person with 10% shares if these persons are subject to items detailed in the act. If not, then a corporation background statement is unnecessary.
Certificate of Status: A Certificate of Status must be acquired from the Secretary of State. This must be carried out at most 30 days prior to submitting the application. Or, the Articles of Incorporation can be accepted instead of a certificate of status if they are submitted at least 6 months before the application is.
Fictitious Business Name: In the event that the company wants to use a different name other than its own for the purpose of real estate, a Fictitious Business Name Statement must be filed. This document is procured from the County Clerk’s Office relevant to the area of business operation.
Branch Office: Submit and complete the document called Branch Office Application.
Salespersons: The Salesperson Change Application document must be submitted on behalf of each salesperson to be employed by the corporation.
