Broker Thompson operates a real estate office in Concord, New Hampshire. He employs three licensed salespersons. One of his salespersons, Kevin, has been found to have commingled client escrow funds with his personal bank account. Under RSA Chapter 331-A, which of the following statements correctly describes the potential consequences for Broker Thompson regarding Kevin's misconduct?
Correct Answer
B) Broker Thompson may face disciplinary action by the NHREC because a broker is responsible for supervising the licensed activities of salespersons affiliated with the brokerage.
Under RSA 331-A, a licensed broker has supervisory responsibility over all salespersons affiliated with the brokerage. When a salesperson engages in misconduct such as commingling client funds, the NHREC may investigate and discipline the supervising broker for failure to adequately supervise. The broker's duty of supervision is a core obligation under NH license law.
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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?
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In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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