How must branch offices of a real estate firm be managed?

The correct answer indicates that each branch must have a designated manager who operates under the oversight of the broker. This structure is critical in preserving accountability and ensuring that the branch operates in compliance with both company policies and state regulations. By having a specific manager in place at each branch, the firm maintains organizational integrity and ensures that there is direct supervision and clear lines of communication.

The broker retains overall responsibility for the firm's operations, thus providing a level of oversight that is essential for maintaining standards and addressing any issues that might arise in the branch. This arrangement allows for an appropriate balance of authority, with the branch manager handling day-to-day operations, while the broker ensures that the branch aligns with the broader objectives and legal requirements of the firm.

In contrast, the other options do not adequately address the need for structured management within branch offices. Solely relying on a branch manager without broker oversight would create a disconnect between the branch operations and the firm's overall strategy. Managing all offices directly without designated branch managers could lead to inefficiencies and potential compliance risks. Additionally, allowing a branch manager with less than three years of experience could undermine professionalism and the quality of management required to run a real estate office effectively.