What statement best describes the supervising broker's supervision?

The statement that the supervising broker must review transaction documents prior to closing and communicate errors made to the licensee best encapsulates the responsibilities involved in effective supervision. In the real estate profession, supervising brokers play a crucial role in overseeing the activities of their licensees to ensure compliance with legal and ethical standards. This includes a thorough review of transaction documents, which helps to identify any inaccuracies or potential issues before a transaction is finalized.

By communicating any errors or necessary corrections to the licensee, the supervising broker not only protects the interests of clients involved in the transaction but also aids in the professional development of the licensee. This guidance is essential for maintaining high standards within the brokerage and preventing legal complications that could arise from poorly managed transactions.

The other options do not accurately reflect the expectations or obligations of a supervising broker. Not reviewing documents would undermine the due diligence required in the industry, while allowing licensees to operate completely independently neglects the broker's supervisory role. Similarly, limiting the broker's responsibility to only sales performance ignores the broader administrative and compliance responsibilities that are central to their position.