PSI Oklahoma Real Estate Practice Test

Which of the following is NOT a requirement for establishing a Real Estate office?

1. Exist with at least 3 Licensees including the Broker

2. Maintain a physical office location

3. Obtain a business license from the state

4. Display signs advertising the real estate services

The correct answer is: Exist with at least 3 Licensees including the Broker

To understand why the correct answer indicates that having at least three licensees, including the broker, is not a requirement for establishing a real estate office, it's essential to recognize the regulatory framework surrounding real estate businesses. Generally, there are minimum requirements that must be satisfied to set up a real estate office, but the number of licensees is not one of them. A real estate office can be established by a single licensed broker, complying with local laws and regulations. This allows for flexibility in how real estate businesses operate, such as allowing small firms or individual brokers to function independently. While having additional licensed agents can enhance the office's market presence and productivity, it is not mandated by law to have a specific number of licensees to start a real estate operation. The other requirements, such as maintaining a physical office location, obtaining a business license from the state, and displaying signs advertising real estate services, are mandated by law to ensure that the business operates legally and can be recognized by clients and the community. These are fundamental to establishing the legitimacy and visibility of the real estate office within the market.