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Pa Rela License LawRela_63ps455MEDIUM

Lisa, a Pennsylvania broker, employs several salespersons. One of her salespersons makes an error in a transaction that harms a consumer. Under RELA, which of the following best describes Lisa's supervisory liability?

Correct Answer

D) She is responsible for the real estate activities of her affiliated salespersons and must exercise adequate supervision

Under RELA (63 P.S. §455.604), a broker is responsible for the real estate activities of all affiliated salespersons and must exercise adequate supervision over their conduct. The broker bears supervisory responsibility for ensuring compliance with RELA.

Answer Options
A
She is only liable for the actions of salespersons who have been licensed for less than one year
B
She must personally attend every transaction closing conducted by her salespersons to avoid liability
C
She must conduct monthly audits of each salesperson's personal finances to be protected
D
She is responsible for the real estate activities of her affiliated salespersons and must exercise adequate supervision

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Related Topics & Key Terms

Key Terms:

broker_supervisionsalespersonRELAliability

Related Concepts

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

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