Maria is a Massachusetts licensed salesperson working under broker Tom. A buyer client files a complaint with the Board alleging that Maria made material misrepresentations about a property's flood zone status, causing the buyer to suffer financial harm. The Board investigates and finds the complaint substantiated. Under Massachusetts law, which of the following outcomes is MOST likely?
Correct Answer
B) Maria faces Board disciplinary action, and Tom may also face disciplinary action for failure to supervise
Under MGL Chapter 112, both the salesperson who committed the violation and the supervising broker can face disciplinary action. Maria is independently licensed and responsible for her own conduct. Tom, as the responsible broker, has a supervisory duty over affiliated salespersons and may be disciplined for failure to adequately supervise Maria's activities.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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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