Supervision

# Supervision and Designated Broker Responsibilities ## The Core Supervision Duty — RCW 18.85.275 The designated broker's supervisory duties are among the most heavily tested areas on the Washington state exam. RCW 18.85.275 establishes the statutory framework: *"The designated broker or managing broker must supervise the conduct of brokers and managing brokers for compliance with this chapter, chapter 18.235 RCW, and RCW 18.86.030."* Under RCW 18.85.275, a designated broker is legally responsible for: - Supervising all brokers for compliance with RCW 18.85, 18.235, and RCW 18.86.030 - Maintaining the firm's trust accounts (delegable to managing broker by written agreement) - Ensuring all advertising complies with WAC requirements (including the firm name in all advertising) - Establishing written policies and procedures for the firm's operations - Being "reasonably available" to answer questions and assist affiliated brokers Firm property rule (RCW 18.85.275): *"Listings, transactions, management agreements, and other contracts relating to providing brokerage services are property of the real estate firm."* Brokers must promptly deliver all required funds and records to their managing broker. Managing brokers must similarly deliver to the designated broker. Delegation authority (RCW 18.85.275): The designated broker may delegate trust account duties and broker supervision to a managing broker through written agreement. However, the designated broker retains ultimate legal accountability — delegation is not abdication. First two years heightened supervision (RCW 18.85.275): During a broker's first two years of licensure, the managing broker must provide heightened supervision as established by director rule. This is a specific statutory requirement, not just a best practice. The non-delegability principle: A designated broker cannot completely delegate…