Which statement is correct regarding property management and real estate brokerage?

The correct statement is that some real estate brokers do not allow property management activities by their sponsored agents. This reflects the reality that property management and real estate brokerage are distinct areas within the real estate industry. While both can be related, brokers may have different business models or operational preferences that dictate whether they permit their agents to engage in property management.

Many brokers choose to focus solely on sales and may not want to take on the additional responsibilities or liabilities that come from property management. Additionally, they might prefer to keep their agents concentrated on the brokerage side of the business to ensure their expertise remains sharp in that area. Consequently, it is entirely plausible that certain real estate brokers have policies in place that limit or prohibit property management activities by their agents based on the structure and focus of their business.

This understanding highlights the importance of recognizing the various roles within real estate and how individual brokers may establish specific restrictions or allowances concerning the activities their agents can undertake.