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Under Georgia real estate license law, which of the following statements about broker supervisory responsibility is correct?

Correct Answer

D) A broker may face disciplinary action for supervision failures even when the underlying misconduct was committed entirely by an affiliated licensee.

Under O.C.G.A. § 43-40-25(a)(22), brokers have an independent regulatory duty to supervise the activities of all affiliated licensees. This supervisory obligation is separate from the underlying misconduct itself. If an affiliated licensee commits a violation, the broker can face discipline for failing to maintain adequate oversight, training, or supervisory systems — regardless of whether the broker personally participated in the violation.

Answer Options
A
Correcting deficient paperwork after a GREC investigation has commenced automatically eliminates the underlying violation and prevents any disciplinary action.
B
Unlicensed real estate activity in Georgia is only subject to enforcement action if a consumer suffers a documented financial loss as a direct result.
C
A broker has no supervisory liability for a misleading advertisement created by an affiliated licensee, provided the broker did not personally approve or sign the advertisement.
D
A broker may face disciplinary action for supervision failures even when the underlying misconduct was committed entirely by an affiliated licensee.

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