Broker of Record Services for
Commercial Real Estate Firms Operating Across State Lines.

A Broker of Record (BOR) is the licensed real estate broker who holds the supervisory and compliance responsibility for all licensed real estate activity conducted under a brokerage entity. Every commercial real estate firm that engages in licensed brokerage activity must have a designated Broker of Record. Without one, the firm is operating without a license, which constitutes unlicensed practice of real estate.

The BOR's responsibilities include supervising all licensed brokers affiliated with the firm, ensuring transactions comply with state licensing laws, overseeing trust account management, maintaining required recordkeeping, and ensuring all required disclosures are made. For firms using PropTech Advisors as a third-party BOR, these responsibilities are fulfilled through an established compliance framework without requiring the BOR to be involved in day-to-day deal operations.

Yes. Broker of Record, Designated Broker, Principal Broker, Broker-in-Charge, Qualifying Broker, Responsible Broker, and Managing Broker are all state-specific titles for the same underlying role — the licensed broker who accepts supervisory responsibility for a real estate firm's licensed operations. PropTech Advisors fills this role under every applicable title across all 50 states and DC through a single engagement.

Yes. The BOR carries personal professional liability for the licensed activities conducted under the firm. This is one of the most significant distinctions between a genuine BOR arrangement and a passive or absentee broker relationship. PropTech Advisors takes this responsibility seriously and structures every engagement with genuine oversight protocols — not a nominal license placement.

Each state has its own independently written real estate licensing statute, resulting in different terminology for the same supervisory broker role. There is no federal standardization of real estate license law. For CRE firms operating across multiple states, this means your BOR must be cognizant of the applicable title and requirements in each jurisdiction, even though the underlying function is the same everywhere.

Yes, if the firm engages in any activity that constitutes licensed real estate brokerage under the applicable state statute — including listing, selling, leasing, managing, or facilitating commercial real estate transactions for compensation. Referral fees tied to real estate activity also typically trigger the requirement.

It depends on the structure. Firms that acquire and sell commercial assets strictly as principal — taking title without acting as agent for third parties — typically do not need a real estate license in most states. However, if the firm earns acquisition or disposition fees that resemble brokerage commissions from third parties, or manages its own properties and leases them to tenants, licensing may be required. PropTech Advisors can assess your specific transaction structure against each state's licensing statute.

Yes, in virtually every state. Commercial property management — including leasing, rent collection, and tenant management for compensation — constitutes licensed real estate brokerage activity. A commercial PM firm operating without a Broker of Record is conducting unlicensed real estate activity and is subject to regulatory enforcement and civil penalties.

If the platform facilitates real estate transactions, earns referral fees or commissions tied to real estate activity, or provides services that constitute brokerage under applicable state law, a Broker of Record is likely required. Many CRE technology companies mistakenly believe their technology layer shields them from licensing requirements — but if the platform is in the transaction chain and compensation flows through it, most states will treat that as brokerage activity requiring a licensed BOR.

Yes. Real estate licensing is state-specific and there is no national license. Every state where your firm conducts licensed real estate activity requires a separately designated Broker of Record registered with that state's real estate commission. PropTech Advisors manages this across all 50 states and DC through a single engagement.

While the underlying obligation is consistent — every brokerage firm must have a designated supervising broker — the specific requirements vary significantly. Differences include the title used, minimum experience requirements for BOR eligibility, continuing education obligations, supervision ratios, trust account requirements, and recordkeeping standards. PropTech Advisors manages these jurisdiction-specific nuances across every state.

Operating without a properly designated Broker of Record constitutes unlicensed practice of real estate. Consequences include civil penalties, injunctive relief preventing further activity in the state, disgorgement of commissions earned during the unlicensed period, and potential unenforceability of contracts and commission agreements.

The timeline depends on the state's processing speed and your entity structure. In many jurisdictions the BOR designation can be filed and processed within two to four weeks. In states requiring new firm license applications or entity registrations, the process may take four to eight weeks. PropTech Advisors expedites the process by handling all filings simultaneously and proactively managing any deficiencies during state review.

Yes, through a properly structured multi-state engagement. PropTech Advisors serves as Broker of Record for CRE firms across all 50 states and DC — handling the licensing process, filing the appropriate designation in each state, and supervising licensed operations across every jurisdiction through a single engagement and one point of contact.

Yes, if they hold an active real estate broker license in the applicable state and meet BOR eligibility requirements. The challenge arises when expanding to new states — obtaining broker licenses in multiple states is time-consuming and creates ongoing CE and renewal obligations. Using PropTech Advisors as BOR in expansion states allows your principals to focus on the business while we handle compliance in every jurisdiction.

The BOR is legally responsible for ensuring all licensed activity under the firm complies with state real estate licensing laws; supervising all affiliated brokers; maintaining proper trust accounts for client funds; ensuring required disclosures are made; maintaining required transaction records; and ensuring the firm's advertising complies with state commission rules.

When a BOR resigns, the firm loses its licensed operating authority immediately — there is no grace period in most states. The firm cannot legally execute new transactions, sign new leases, or collect commissions until a replacement BOR is designated. PropTech Advisors can respond quickly to BOR vacancy emergencies and restore compliant operating authority.

In most states, no. Earning referral fees tied to real estate transactions — where the fee is paid in exchange for referring a buyer, seller, tenant, or landlord — generally constitutes brokerage activity that requires a real estate license. If your CRE firm regularly earns fees tied to transaction activity without holding a license, you are likely operating in violation of state licensing law. A properly designated Broker of Record is required for the entity earning those fees.

Yes, in virtually every U.S. state. Collecting management fees for leasing, managing, and maintaining commercial properties on behalf of property owners constitutes licensed real estate activity. This applies to percentage-of-rent management fees, leasing commissions, tenant placement fees, and similar compensation structures. A commercial property management firm earning these fees without a licensed Broker of Record is engaging in unlicensed practice of real estate regardless of how the fee is structured or labeled.

Most states prohibit paying a commission or referral fee to an unlicensed person or entity in connection with a real estate transaction in that state. For multi-state co-brokerage arrangements, both the paying and receiving firm typically need to be properly licensed in the relevant jurisdictions. Paying fees to an unlicensed out-of-state broker can expose both parties to regulatory enforcement. PropTech Advisors can help structure multi-state co-brokerage arrangements that comply with applicable licensing requirements.

Any compensation structure where your firm earns money in connection with a real estate transaction on behalf of another party typically requires a Broker of Record. This includes: leasing commissions, sales commissions, property management fees, referral fees, acquisition and disposition fees earned from third parties, finder's fees tied to real estate introductions, and tenant placement fees. The common denominator is compensation tied to facilitating or managing real estate activity for others.