Broker Jackson's brokerage has 15 sponsored sales agents. TREC conducts a routine audit and discovers that Jackson has failed to maintain proper records of all transactions handled by his agents over the past year. Under TREC's broker responsibility rules, which of the following best describes Jackson's liability?
Correct Answer
D) Jackson may face disciplinary action because the sponsoring broker is responsible for maintaining transaction records and supervising all activities of sponsored agents
Under Texas Occupations Code §1101.803 and TREC Rules §535.2, the sponsoring broker has a duty to supervise sponsored sales agents and maintain proper records. Failure to maintain transaction records is a violation of broker responsibility rules, and the broker may face disciplinary action regardless of whether consumer harm is demonstrated.
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