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Practice Of Real Estate DisclosuresAdvertising_and_ethicsMEDIUM

A California broker receives a consumer complaint alleging that one of the broker's salespersons ran misleading advertising. Under Cal. B&P Code §10159.2, which of the following best describes the broker's obligation?

Correct Answer

B) Investigate the complaint, take corrective action if a violation is found, and implement procedures to prevent future violations

Cal. B&P Code §10159.2 places supervisory responsibility squarely on the broker. This includes investigating complaints about salesperson conduct, taking corrective action when a violation is identified regardless of whether the salesperson admits fault, and establishing procedures to prevent recurrence. The broker cannot condition corrective action on the salesperson's admission.

Answer Options
A
Investigate the complaint and take corrective action only if the salesperson admits wrongdoing
B
Investigate the complaint, take corrective action if a violation is found, and implement procedures to prevent future violations
C
Forward the complaint to the salesperson to resolve directly, since the salesperson created the advertising
D
Report the complaint to the DRE immediately and defer any internal review until the DRE concludes its inquiry

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Related Topics & Key Terms

Key Terms:

ethicsadvertising_complaintbroker_supervisioncorrective_actionBP_Code_10159.2

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