What is the role of a broker of record in a brokerage?

The role of a broker of record is crucial within a brokerage, as they are primarily responsible for managing the overall operations of the brokerage and ensuring compliance with applicable laws and regulations governing real estate transactions. This includes overseeing the activities of salespersons and other staff, maintaining proper record-keeping, providing guidance on ethical practices, and ensuring that the brokerage adheres to the regulations set out by governing bodies like the Real Estate Council of Ontario (RECO).

While a broker of record may have a hand in hiring and training new salespersons, that aspect is more a part of the management responsibilities rather than the primary function. Their role is not to conduct transactions independently without oversight or to sell properties directly, as these tasks typically fall to the sales representatives within the brokerage. The broker of record's focus is on compliance and management, which helps to maintain the integrity of the brokerage and protect both consumers and the industry at large.