Question

Which of the following is not true regarding a nonprincipal broker?

1.) A nonprincipal broker has same duties as a salesperson.
2.) A nonprincipal broker is an owner in the business. (Answer)
3.) A nonprincipal broker can sign closing statements.
4.) A nonprincipal broker can be a signatory on the trust account.

Answer 1

A nonprincipal broker is not an owner in the business, unlike the salesperson.

Step-by-step explanation:

The correct answer to the question is option 2.) A nonprincipal broker is not an owner in the business.

A nonprincipal broker is a real estate professional who has obtained a broker's license but does not work as the principal or owner of the brokerage firm. Instead, they work under the supervision of a principal broker and have additional duties and responsibilities compared to a salesperson.

While a nonprincipal broker can sign closing statements and be a signatory on the trust account, they are not owners in the business.