A Florida sales associate discovers that their supervising broker has been altering transaction documents after client signatures to increase commission amounts. What is the associate's primary obligation?
Correct Answer
B) Document the violations and report them to FREC
Correct: Document alteration is a serious violation requiring immediate reporting to FREC with supporting documentation. Why not A: Private confrontation doesn't address the legal obligation to report serious violations. Why not C: Changing employment doesn't fulfill the obligation to report violations. Why not D: Notifying clients directly could interfere with proper investigation procedures.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
More Fair Housing Ada Ethics Questions
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- → Agent Miller receives a call from a prospective tenant who mentions they have a service animal. The landlord tells Miller not to show properties to anyone with pets. What should Miller do?
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