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Pa Rela Brokerage RulesBrokerage_operationsHARD

Under RELA, a Pennsylvania broker of record, Laura, learns that one of her salespersons has been convicted of a drug-related felony. The salesperson has not been arrested or charged with any real estate-related offense. What is Laura's obligation under RELA?

Correct Answer

A) Laura must report the conviction to the SREC, as brokers have an obligation to report known violations and material information regarding affiliated licensees

Under RELA, brokers have an obligation to report material information about affiliated licensees to the SREC. A felony conviction, even if unrelated to real estate, is material to the licensee's fitness and must be reported. Additionally, licensees themselves have self-reporting obligations.

Answer Options
A
Laura must report the conviction to the SREC, as brokers have an obligation to report known violations and material information regarding affiliated licensees
B
Laura must terminate the salesperson immediately without further inquiry
C
Laura has no obligation because the conviction is unrelated to real estate
D
Laura may ignore the conviction as long as the salesperson continues to perform well

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Related Topics & Key Terms

Key Terms:

felony_convictionreporting_obligationbroker_dutylicensee_fitnessbrokerage_operationsRELA
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