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Ny License Law Dos RegulationsDos_structure_and_powersMEDIUM

Salesperson Park, affiliated with a licensed brokerage, fails to disclose a known property defect to a buyer. The DOS opens an investigation. Under New York law, what is the potential liability of the supervising associate broker, Kim?

Correct Answer

A) Kim may be held liable by DOS for failure to adequately supervise Park's activities

Under New York Real Property Law § 441 and DOS regulations, brokers and associate brokers who are delegated supervisory responsibility have a duty to supervise affiliated salespersons. DOS may impose disciplinary action — including fines, suspension, or revocation — against a supervising licensee who fails to provide adequate supervision, even without proof of direct personal knowledge of the violation.

Answer Options
A
Kim may be held liable by DOS for failure to adequately supervise Park's activities
B
Kim is liable only if DOS can prove Kim had direct knowledge of the defect before closing
C
Kim has no liability because salespersons are classified as independent contractors
D
Kim is automatically liable for all monetary damages suffered by the buyer

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Related Topics & Key Terms

Key Terms:

supervision_liabilityassociate_brokerdos_accountabilityregulatory_duty

Related Concepts

Spot zoning is an illegal or improper rezoning of a small parcel of land that is inconsistent with the surrounding zoning and the comprehensive plan. It benefits an individual owner rather than the community as a whole.

Subdivision regulations are local government rules that control the division of land into smaller parcels for development or sale. They ensure proper infrastructure, lot sizes, and public improvements are provided.

A variance is an authorized deviation from the existing zoning ordinance granted to a property owner who demonstrates unique hardship. It allows a use or structure that would otherwise violate the current zoning rules.

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