Lisa is a licensed Managing Broker in Indiana who operates her own real estate office, Lakeview Properties. She has three affiliated Brokers working under her. One of her affiliated Brokers, Derek, is found to have engaged in misrepresentation when dealing with a buyer. Under Indiana law, which of the following best describes Lisa's potential liability?
Correct Answer
A) Lisa may be subject to disciplinary action by the IREC for failure to adequately supervise Derek.
Under IC 25-34.1, the Managing Broker has a legal duty to supervise all affiliated licensees. If an affiliated Broker engages in misconduct, the Managing Broker may face disciplinary action by the Indiana Real Estate Commission (IREC) for failure to properly supervise. The supervisory responsibility is a core obligation of the Managing Broker license, regardless of whether the affiliated Broker is an employee or independent contractor.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
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- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
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- → A Wyoming licensee is reviewing a first-time salesperson applicant asks which prelicense courses are required. What is the best answer?
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