Before engaging in a transaction that requires a license, what is required from the broker's principal?

• A. Oral authorization.
• B. Signed written authorization.
• C. Verbal email approval.
• D. A notarized letter from the lender.

Answer: (B)

In California, a licensee must operate under the supervision of a broker, and that supervision must be documented in writing. Before a licensee can engage in any transaction that requires a license, the broker’s principal must provide signed written authorization allowing the licensee to perform licensed acts. This requirement ensures accountability and that the broker is clearly authorizing and responsible for the licensee’s activities.

Oral authorization, verbal email approval, or a lender’s notarized letter doesn’t establish the required formal, written linkage between the licensee and the supervising broker, so they aren’t sufficient. The signed written authorization directly ties the licensee’s authority to the broker’s license and supervision, which is essential for compliance and protection of the public.