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A Georgia broker's affiliated salesperson published misleading advertising without the broker's knowledge or direct involvement. The broker had no written advertising policy and never reviewed the salesperson's marketing materials. Regarding GREC disciplinary authority, which statement is correct?

Correct Answer

A) The broker faces potential disciplinary action for failing to adequately supervise the affiliated licensee, regardless of who created the advertisement.

Under O.C.G.A. § 43-40-25(a)(22) and GREC rules, brokers have an independent regulatory duty to supervise all licensees operating under their authority. Failure to establish and enforce supervisory policies—including advertising review procedures—is itself a disciplinable violation, even if the broker did not personally commit the underlying misconduct.

Answer Options
A
The broker faces potential disciplinary action for failing to adequately supervise the affiliated licensee, regardless of who created the advertisement.
B
Because the broker did not personally create or approve the advertisement, GREC can only discipline the salesperson who published it.
C
GREC must first prove the broker had actual knowledge of the misleading content before any supervisory discipline can be imposed.
D
Supervisory liability applies only when the broker and salesperson share office space and the broker had a reasonable opportunity to physically review the materials.

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Key Terms:

georgiastate_portionpenalties_gagrec_rules_and_disciplinary
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