North Dakota Real Estate Practice Exam

Who is referred to as a designated broker in real estate?

1. A licensee acting on behalf of a brokerage

2. A client involved in a transaction

3. A customer not represented by the brokerage

4. A person buying or selling real property

The correct answer is: A licensee acting on behalf of a brokerage

The term "designated broker" in real estate specifically refers to a licensee who is appointed by a brokerage to be responsible for the supervision of all licensed real estate agents within that brokerage. This individual is often the main point of contact for clients and authorities concerning the brokerage's activities and transactions. They are responsible for ensuring compliance with state laws and regulations, overseeing the conduct of the agents, and managing the overall operations of the brokerage. By contrast, the other options describe different roles within the real estate transaction process. A client involved in a transaction is someone engaging with the services offered by a brokerage or an agent but does not hold the supervisory responsibilities. A customer not represented by the brokerage plays a passive role and does not have a formal relationship with the broker or agents, while a person buying or selling real property is involved in the transaction but does not inherently possess the supervisory or managerial responsibilities that characterize a designated broker. Thus, the correct designation highlights the unique responsibilities and authority held by the designated broker within a real estate brokerage.