Understanding the Role of a Broker of Record and Its Importance

Starting or running a real estate business in California involves more than marketing properties and closing deals. One of the most crucial roles — and often the most misunderstood — is that of the Broker of Record (BoR). If you’re a new brokerage, an experienced agent going independent, or someone exploring how to structure your real estate operations, understanding the role of a BoR is essential.

What is a Broker of Record?

The Broker of Record is the licensed real estate professional who holds responsibility for the supervision and legal compliance of a brokerage. They are the one registered with the California Department of Real Estate (DRE) and legally accountable for all activities conducted under the brokerage license.

Think of the BoR as the designated captain of the ship. Even if there are multiple agents or teams under one brand, the BoR ultimately ensures that everyone follows DRE regulations, proper procedures are in place, and contracts and documents are compliant.

 Broker of Record provides oversight and ensures your brokerage operates in compliance with DRE regulations.

When Do You Need a Broker of Record?

In California, every licensed real estate corporation must designate a Broker of Record. If you're launching your own firm but don't hold a broker’s license yourself, you'll need a licensed broker to serve in this role. Even if you are licensed, you may choose to hire an external BoR for operational oversight, risk management, or as part of a temporary or transitional structure.

Some scenarios where hiring a BoR makes sense include:

• Starting a new real estate firm without your own broker’s license

• Temporarily replacing a departing broker while maintaining business continuity

• Operating remotely or part-time and needing someone to supervise day-to-day compliance

• Focusing on sales and growth, while a trusted BoR handles back-end regulatory details

From reviewing contracts to managing disclosures, the BoR plays a vital role in every transaction.

What Does a Broker of Record Actually Do?

Beyond holding the license, a qualified Broker of Record:

• Reviews and approves contracts, listing agreements, and disclosures

• Ensures compliance with DRE requirements and internal policies

• Maintains agent supervision and provides support on complex transactions

• Oversees trust account handling and risk mitigation practices

• Coordinates audits and recordkeeping

• Helps establish company policies and operational systems

  
  

In essence, the BoR plays both a compliance and strategic advisory role, ensuring your business runs legally and smoothly — and helping prevent costly mistakes.

Choosing the Right BoR: Experience and Trust Matter

Partnering with an experienced Broker of Record offers peace of mind and strategic support for growing brokerages.

Not all BoRs offer the same level of involvement or expertise. Some are nominal — they lend their license but remain hands-off (a risky approach). Others, like those at Adroit Realty Advisory, bring real operational insight, clear communication, and tailored oversight to help your brokerage grow while staying in full regulatory alignment.

Look for a Broker of Record who:

• Has experience with your type of business (residential, commercial, etc.)

• Can provide clear documentation and workflows

• Offers guidance, not just oversight

• Is responsive and proactive about DRE changes and expectations

  
  
  
  

Is a Broker of Record Right for You?

If you’re unsure whether to hire a BoR or handle compliance yourself, ask: do I have the time, tools, and confidence to manage every detail — or would I benefit from expert support? For many professionals, partnering with a seasoned BoR isn’t just about meeting legal requirements; it’s about peace of mind.

Need help setting up your brokerage or ensuring you’re DRE-compliant?

Explore Adroit Realty Advisory’s Broker of Record Services or book a consultation to find out how we can support your business.