John, a Detroit broker who wants to open a branch in Grand Rapids, must?

• A. Open branch as a sub-branch without license.
• B. Hire a manager who is not licensee.
• C. Just register the branch with city authorities.
• D. License the branch with the Department and ensure it's managed by an associate broker.

Answer: (D)

Branch offices are treated as extensions of a brokerage, so they must be regulated just like the main office. In Michigan, a branch cannot operate unless it is licensed with the state’s Department and its day-to-day activities are supervised by a licensed professional. The person in charge at the branch must be a licensed associate broker (or broker) who can oversee the licensees working there and ensure compliance with advertising, fiduciary duties, and trust accounts.

Registering with the city or using a non-licensed manager does not meet state requirements, and opening a branch as a sub-branch without a license would be illegal. By licensing the branch and designating a licensed associate broker to manage it, the broker ensures proper supervision and regulatory accountability throughout the branch.