Which statement is true regarding a broker's obligations?

A broker's obligation to maintain a written policies and procedures manual is rooted in regulatory compliance and best practices within the real estate industry. This manual serves as a vital tool for outlining the operational standards, ethical guidelines, and legal responsibilities that govern the brokerage's activities.

By having a documented set of policies and procedures, a broker ensures that all agents and staff operate under a consistent framework. This not only helps in managing risks but also aids in training new agents and ensuring compliance with state and federal regulations. Such a manual helps protect both the broker and clients by providing clarity and structure around processes, decision-making, and ethical standards.

The other options suggest that a broker may function without such a manual or that it is only required under specific circumstances. However, in many jurisdictions, maintaining a written policies and procedures manual is considered a best practice and sometimes a requirement, regardless of the number of employees or operational size of the brokerage. This underscores the importance of having clear guidelines in place to foster a professional and legally compliant work environment.