A sales associate makes unauthorized promises about a property's zoning during a showing. The supervising broker knew nothing about the promises. Can the broker be held liable?
Correct Answer
A) Yes, under vicarious liability because the associate was acting within the scope of the brokerage relationship
Vicarious liability holds the supervising broker responsible for wrongful acts committed by an affiliated licensee acting within the scope of the brokerage relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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A listing agreement creates an agency relationship between:
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