A California salesperson negligently misrepresents a property's condition to a buyer while showing one of the employing broker's listings. The buyer sues for damages. Who may be held liable?
Correct Answer
B) Both the salesperson and the broker, for acts within the scope of the association
A salesperson may act only under the employing broker's license, so the broker is answerable for what the salesperson does within the scope of that association, the principle of respondeat superior. Commissioner's Regulation 2725 requires the broker to exercise reasonable supervision over the licensees' activities, and Business and Professions Code section 10177(h) makes a failure to do so a ground for discipline. That vicarious responsibility does not excuse the person who spoke: the salesperson remains personally liable for the salesperson's own negligent misrepresentation. The buyer may pursue both.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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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