Broker Lisa operates a busy brokerage in Kansas City. She has 15 affiliated salespersons. One of her salespersons, Marcus, independently negotiated a transaction without Lisa's knowledge, failed to properly disclose a material defect to the buyer, and mishandled the earnest money deposit. MREC investigates and finds violations. Under Missouri law, which of the following best describes Broker Lisa's potential liability in this situation?
Correct Answer
B) Lisa may face disciplinary action because Missouri law imposes non-delegable supervisory duties on brokers for the conduct of their affiliated salespersons
Missouri law imposes a non-delegable duty of supervision on licensed brokers over all affiliated salespersons. Under RSMo Chapter 339 and MREC rules, a broker is responsible for establishing and maintaining adequate supervisory systems and procedures. Failure to supervise — even without actual knowledge of a specific violation — can itself constitute a ground for disciplinary action against the broker. Lisa's lack of knowledge does not automatically absolve her; MREC can discipline her for failing to implement adequate supervisory oversight that would have detected or prevented Marcus's misconduct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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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