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Pa Rela Brokerage RulesBrokerage_operationsMEDIUM

Under RELA, a Pennsylvania broker of record, Diana, discovers that one of her salespersons has been providing legal advice to clients regarding contract interpretations. What is Diana's obligation?

Correct Answer

D) Diana must immediately address the issue, as providing legal advice constitutes unauthorized practice of law, and the broker has a duty to ensure licensees do not engage in such conduct

Under RELA (63 P.S. §455.604), the broker of record must supervise licensees and ensure they do not engage in activities beyond the scope of their license. Providing legal advice constitutes unauthorized practice of law, and the broker must take immediate corrective action.

Answer Options
A
Diana should encourage the salesperson to continue, as it provides better client service
B
Diana should simply add a disclaimer to the brokerage website
C
Diana has no obligation because each salesperson is an independent professional
D
Diana must immediately address the issue, as providing legal advice constitutes unauthorized practice of law, and the broker has a duty to ensure licensees do not engage in such conduct

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Related Topics & Key Terms

Key Terms:

unauthorized_practice_of_lawbroker_supervisionlegal_advicebrokerage_operationsRELA
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