Apex Realty in Spartanburg operates two separate office locations. The Broker-in-Charge of the main office, Victor, is also listed on SCREC records as the BIC of the second branch office because the firm has not yet designated a replacement BIC for the branch. A salesperson at the branch office, Cynthia, completes a transaction and deposits earnest money into the branch's trust account without Victor's knowledge. Under South Carolina law, which of the following best describes the regulatory situation?
Correct Answer
B) Victor may be subject to disciplinary action for both the improper dual-office BIC arrangement and any trust account irregularities at the branch office
Victor faces potential disciplinary exposure on two grounds. First, serving as BIC for two separate office locations simultaneously violates the one-BIC-per-office rule under S.C. Code Ann. § 40-57-360. Second, as the BIC of record for the branch, Victor retains supervisory responsibility for that office's operations, including trust account compliance. The fact that he was unaware of Cynthia's deposit does not eliminate his supervisory liability as BIC.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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