A broker's sales associate enters into a buyer representation agreement but fails to provide the required brokerage relationship disclosure notice. When does the broker become aware this creates potential liability?
Correct Answer
D) Immediately, as the broker is responsible for associate compliance
The broker is immediately responsible for ensuring associates comply with disclosure requirements regardless of when discovered or whether complaints are filed. A waits too long and relies on external action. B delays responsibility unnecessarily. D incorrectly ties liability to damages rather than the violation itself.
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A Florida broker's escrow account shows a book balance of $50,000, but the bank statement shows $48,500. After reconciliation, there is still a $1,500 shortage. Within how many business days must the broker notify FREC of this shortage?
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