A California managing broker discovers that one of her associate licensees acted as a dual agent without obtaining written consent from either party. The transaction has already closed. Under California law, what liability does the managing broker face?
Correct Answer
A) DRE disciplinary action and civil liability, because supervision is the managing broker's duty
Supervision is owed whether or not the broker was in the room, so an associate's undisclosed dual agency reaches the managing broker through the supervision duty. Other choices: not being personally involved is the situation the duty exists for; an express instruction is not required; and this is a licensing and civil matter, not a felony.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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