Question 1

What's the difference between a broker and a salesperson?

Accepted Answer

A real estate broker has passed the PRC board exam and can operate independently, hire salespersons, and receive commissions directly. A salesperson works under a licensed broker's supervision and cannot transact independently. Brokers have higher educational requirements (BS REM since 2017) and broader legal responsibilities for transactions.

Question 2

Why should I work with a licensed broker?

Accepted Answer

Licensed brokers are regulated by the PRC and bound by the Real Estate Service Act (RESA). They carry professional liability, must complete continuing education, and follow a strict Code of Ethics. Working with unlicensed agents ("colorum") offers no legal protection, no recourse for disputes, and may expose you to fraud. Verify license status before any transaction.

Question 3

What should I expect from a newly licensed broker?

Accepted Answer

Newly licensed brokers bring fresh knowledge of current market trends, updated legal requirements, and recent training. They often provide highly personalized service and competitive rates as they build their client base. All PRC-licensed brokers, regardless of experience level, have passed the same rigorous board examination and are bound by the same professional standards under the Real Estate Service Act (RESA).

Question 4

How has the real estate industry changed since the pandemic?

Accepted Answer

The post-pandemic real estate market has seen significant shifts: increased demand for larger living spaces, growth in provincial markets, rise of virtual property tours, and greater emphasis on home office spaces. Brokers licensed after 2022 have trained specifically for this evolved market landscape and are well-versed in hybrid transaction methods.

Question 5

Does the exam passing rate affect broker quality?

Accepted Answer

The passing rate reflects exam difficulty in a given year, not individual broker competence. All licensed brokers—regardless of when they passed—met the same PRC standards. A higher passing rate often indicates well-prepared candidates or favorable exam conditions, while all successful examinees demonstrated the required knowledge and skills.

Dennis L. Tranzona

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April 2024 Board Exam

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