What is required for a brokerage to trade in real estate under TRESA?

For a brokerage to trade in real estate under the Trust in Real Estate Services Act (TRESA), it is essential that all brokers and salespersons are employed by a licensed brokerage. This requirement ensures that all individuals involved in the trading process are operating under the regulatory framework set by TRESA, which serves to protect the public and maintain professional standards within the real estate industry.

Brokerages act as the primary point of accountability in real estate transactions, and having all brokers and salespersons registered and employed ensures that they are adhering to the necessary laws and ethical guidelines. This setup creates a structured environment where the expertise of licensed professionals is utilized, enhancing service delivery and consumer protection.

In contrast, if only the broker of record were required to be registered, it could lead to situations where unqualified individuals engage in real estate activities, jeopardizing consumer interests. Similarly, brokers operating independently without a brokerage do not exist under TRESA's structure, as they need to be part of a brokerage to legally trade in real estate. Registration is not optional for salespersons either; rather, it is a requirement for them to operate legally within the framework of TRESA.