A sponsored sales agent omits a required license holder status disclosure in a transaction, and the sponsoring broker was unaware the disclosure was never made. Which of the following best describes the broker's potential liability under TREC rules?
Correct Answer
B) The broker may face disciplinary action for failure to supervise, regardless of whether the agent is also disciplined
Under TREC Rules §535.2, a sponsoring broker has an affirmative duty to supervise sponsored agents and ensure their compliance with TRELA and all TREC rules, including disclosure requirements. This supervisory obligation means a broker can face disciplinary action for systemic or preventable compliance failures even without direct personal involvement in the transaction.
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