A real estate broker must have a license in which circumstance?

A real estate broker must have a license when selling property on behalf of the owner because this activity constitutes a fiduciary responsibility where the broker represents the interests of another party in a real estate transaction. Licensing ensures that the broker has met the necessary educational and ethical standards required to handle such transactions legally and competently. Brokers are also responsible for navigating complex legal frameworks and understanding the market, both of which require formal training and adherence to regulations.

Managing personal residential properties, while it may require a certain level of knowledge, does not necessarily require a licensed broker as long as the owner is not acting on behalf of someone else. Involvement in leasing real estate can sometimes fall under the umbrella of property management, and specific regulations might differ, depending on the extent of the activity and whether the broker is representing others. Auctioning real estate also typically requires licensing, but this specific activity would not necessarily encompass all brokers, as there are specialized auctioneers. Therefore, selling property on behalf of the owner is the most direct circumstance that mandates a broker's license.