Question

Which of the following steps are typically part of establishing a compliance program within a real estate brokerage?

1. Appoint a compliance officer
2. Set written policies and procedures
3. Risk assessment
4. Ongoing compliance training, and
5. Program effectiveness review in every two years

A) 1, 3, and 5
B) 2, 4, and 5
C) 1, 2, and 4
D) 2, 3, and 4

Answer 1

Establishing a compliance program in a real estate brokerage involves appointing a compliance officer, setting written policies and procedures, conducting a risk assessment, providing ongoing compliance training, and conducting program effectiveness review. Option C

Step-by-step explanation:

The establishment of a compliance program within a real estate brokerage typically involves several key steps to ensure that the organization operates in accordance with laws and regulations. These steps often include:

Appointing a compliance officer to oversee the program and ensure that the company adheres to regulatory requirements.

Setting up written policies and procedures that clearly define the company's commitment to compliance and provide a guideline for employees.

Conducting a risk assessment to identify areas of potential non-compliance and prioritize them for action.

Implementing ongoing compliance training programs to educate employees about the company's policies, procedures, and the requirements of applicable laws and regulations.

Periodically reviewing the program's effectiveness, which can include audits, to ensure it is functioning properly and addressing the necessary risks.

All of these steps are important, but if we must choose the typical foundational elements of a program, the correct answer would be C) 1, 2, and 4: Appoint a compliance officer, Set written policies and procedures, and Ongoing compliance training. Option c