Broker-in-Charge Sandra operates a real estate office in Spartanburg, SC. One of her affiliated salespersons, Derek, consistently presents the agency disclosure form only after consumers have toured at least one property, arguing that earlier disclosure 'kills the mood' and that no real business is conducted until a showing occurs. Sandra is aware of Derek's practice but has taken no corrective action. A SCREC audit reveals this pattern. Under South Carolina law, which of the following most accurately describes the potential disciplinary consequences?
Correct Answer
A) Both Derek and Sandra may face disciplinary action because the BIC has supervisory responsibility for affiliated licensees' compliance
Under South Carolina law, the Broker-in-Charge bears supervisory responsibility for the regulatory compliance of all licensees affiliated with her office. Sandra's awareness of Derek's non-compliant practice — presenting the disclosure form only after showings rather than at first substantive contact — combined with her failure to correct it, exposes her to disciplinary action. The BIC's duty to supervise is a core responsibility under SC Code Ann. § 40-57-10 et seq. and SCREC regulations. Derek is also subject to discipline for the underlying violations. The SCREC can pursue action against both the individual licensee and the BIC who failed to ensure compliance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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