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Practice Of Real Estate DisclosuresBrokerage_operationsMEDIUM

A salesperson in a California brokerage is alleged to have misrepresented a property's square footage to a buyer. Under Cal. B&P Code §10159.2, which response by the broker best satisfies the broker's supervisory obligation?

Correct Answer

C) Investigate the allegation, take appropriate corrective action regarding the salesperson, and address the buyer's concern

Cal. B&P Code §10159.2 imposes an affirmative supervisory duty on brokers to oversee the conduct of salespersons acting under their license. When a complaint arises, the broker must investigate whether a violation occurred, take corrective action proportionate to the findings (such as additional training, discipline, or remediation with the buyer), and document the response. Passive or deflecting responses do not satisfy this statutory obligation.

Answer Options
A
Advise the buyer to file a complaint directly with the DRE, as the dispute is between the buyer and the salesperson
B
Instruct the salesperson to provide the buyer with a written apology and close the matter internally
C
Investigate the allegation, take appropriate corrective action regarding the salesperson, and address the buyer's concern
D
Defer action until the buyer initiates formal legal proceedings, then cooperate with counsel

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Related Topics & Key Terms

Key Terms:

brokeragecomplaintsquare_footagesupervisionBP_Code_10159.2

Related Concepts

Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.

Mold disclosure involves informing buyers about the presence of mold or conditions that are conducive to mold growth in a property. While no federal mold disclosure law exists, many states require disclosure of known mold issues.

A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.

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