Designated Broker Helen supervises a brokerage with 12 affiliated agents. One of her agents, Tom, secretly accepts a cash payment directly from a seller outside of the closing process without Helen's knowledge. AREC investigates and finds that Helen had no actual knowledge of Tom's conduct but had failed to implement any written office policies or supervisory procedures. Under Arkansas license law, which outcome is most likely for Helen?
Correct Answer
A) Helen may face disciplinary action for failing to adequately supervise her affiliated agent
Under Arkansas license law and AREC rules, a designated broker has a duty to supervise affiliated licensees. This supervisory duty includes implementing written office policies and procedures. Even when a designated broker lacks actual knowledge of an agent's misconduct, the failure to establish and maintain adequate supervisory systems can itself constitute a violation. AREC may impose disciplinary sanctions on Helen for inadequate supervision, even though Tom was the direct wrongdoer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
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