Cornerstone Realty is a Kentucky brokerage where Principal Broker Alice supervises five affiliated sales associates. Alice designates Sales Associate Ben to represent the seller and Sales Associate Carol to represent the buyer in the same residential transaction. The seller later claims that Ben shared confidential pricing information with Carol, harming the seller's negotiating position. Under Kentucky law, which party bears primary regulatory and supervisory responsibility for the conduct of both Ben and Carol in this transaction?
Correct Answer
B) Alice, as the principal broker, bears primary supervisory responsibility for the conduct of both Ben and Carol under her brokerage.
Under KRS Chapter 324, the principal broker bears primary statutory responsibility for supervising all affiliated licensees and ensuring their compliance with Kentucky real estate law. In a designated agency arrangement, while Ben and Carol each act as single agents for their respective clients, Alice remains the principal broker responsible for their conduct. The principal broker's supervisory duty includes ensuring that confidential information is not improperly shared between designated agents. Alice's failure to establish adequate supervision procedures can result in disciplinary action against her as the principal broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → 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?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
- → In Wyoming real estate practice, a written sworn complaint or Commission motion starts a disciplinary matter. What should the licensee remember?
- → 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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