If a limited partner has an active real estate license, what may they do for the partnership?

• A. Manage the business
• B. Perform real estate brokerage services on behalf of the partnership, but cannot manage the business
• C. Sell shares of the partnership
• D. Lease the office space

Answer: (B)

Having an active real estate license allows a limited partner to perform brokerage services for the partnership, but not manage the business. The license enables professional activities related to real estate transactions on behalf of the partnership, such as helping with listings, negotiations, and closings. However, limited partners are generally restricted from participating in the day-to-day management of the enterprise; taking on management duties could be treated as assuming general partner status and jeopardize limited liability. So the correct role is to provide real estate brokerage services for the partnership while avoiding managerial responsibilities.