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Practice Of Real EstateLicense_lawMEDIUM

A Connecticut real estate broker, Tom, is found to have failed to supervise his salesperson adequately, resulting in the salesperson's repeated violations of the agency disclosure requirements under CGS § 20-325c. Under Connecticut law, which of the following most accurately describes Tom's potential liability?

Correct Answer

A) Tom may face CREC disciplinary action for failure to adequately supervise his licensed salesperson

Under CGS Chapter 392 and CREC regulations, a supervising broker has a legal duty to supervise the activities of all salespersons operating under their license. Failure to provide adequate supervision is itself a ground for CREC disciplinary action against the broker, even if the broker did not personally commit the underlying violations.

Answer Options
A
Tom may face CREC disciplinary action for failure to adequately supervise his licensed salesperson
B
Tom cannot be disciplined because the salesperson, not the broker, committed the violations
C
Tom is only liable if he personally participated in each individual disclosure violation
D
Tom's liability is limited to reimbursing the salesperson's license renewal fees as a penalty

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Related Topics & Key Terms

Key Terms:

disciplinary_actionsbroker_supervisionsupervisory_liabilityagency_disclosureCREC

Related Concepts

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

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