Under Ohio law, Broker Lane's salesperson, Agent Cooper, provides a comparative market analysis to a seller during a listing presentation. The CMA significantly overstates the property's value, leading the seller to list at an unrealistic price. The property fails to sell, and the seller claims damages. Under ORC Chapter 4735, what is Broker Lane's exposure?
Correct Answer
B) Broker Lane may be vicariously liable because the broker is responsible for the salesperson's professional conduct
Under ORC §4735.18, the broker is responsible for supervising affiliated salespersons. If Agent Cooper's CMA was negligently prepared, Broker Lane may face vicarious liability for the salesperson's professional misconduct.
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Related Topics & Key Terms
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Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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