If a group of individuals forms a brokerage partnership and all want to practice real estate, what must they all be licensed as?

• A. Active Broker
• B. Sales Associate
• C. Trainee
• D. Unlicensed

Answer: (A)

To practice real estate, you need a license that matches the tasks you’ll perform. A partnership that runs a brokerage is a business that handles real estate transactions, so anyone who will actively handle those transactions must have a broker license and be authorized to operate the brokerage. An active broker license lets you run the firm, supervise others, and legally represent clients in deals. A sales associate license only allows you to work under a licensed broker, not run the brokerage or perform all broker duties. A trainee is still in training and can’t independently engage in brokerage activities. Being unlicensed isn’t allowed. So, if everyone in the partnership intends to practice, each person should be licensed as an active broker.