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Practice Of Real EstateLicense_lawMEDIUM

Marcus is a licensed Idaho real estate broker who has been appointed as the designated broker for Mountain West Realty LLC. His salesperson, Jennifer, is found to have engaged in fraudulent misrepresentation with a client. Under Idaho law, which of the following best describes Marcus's potential liability?

Correct Answer

D) Marcus may be held liable because the designated broker is legally responsible for the supervision of all affiliated licensees

Under Idaho Code § 54-2018 and the Idaho Real Estate License Act, the designated broker bears supervisory responsibility for all licensees affiliated with the brokerage. IREC can take disciplinary action against the designated broker for failing to adequately supervise affiliated licensees, even if the designated broker did not personally participate in the misconduct.

Answer Options
A
Marcus is only liable if he personally participated in or directed Jennifer's fraudulent conduct
B
Marcus has no liability because Jennifer acted independently and without his knowledge or authorization
C
Marcus's liability is limited to returning the commission earned on the fraudulent transaction
D
Marcus may be held liable because the designated broker is legally responsible for the supervision of all affiliated licensees

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Related Topics & Key Terms

Key Terms:

designated_brokersupervisory_liabilitybroker_responsibilitydisciplinary_action

Related Concepts

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

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