Kevin operates a real estate brokerage in Salt Lake City and employs three Sales Agents and one Associate Broker. One of his Sales Agents, Tina, is found to have engaged in misrepresentation during a transaction without Kevin's knowledge. Under Utah Code Ann. § 61-2f, which of the following best describes Kevin's potential liability?
Correct Answer
A) Kevin bears supervisory responsibility as Principal Broker and may face disciplinary action for failing to adequately supervise Tina
Under Utah Code Ann. § 61-2f and Utah Administrative Code R162-2f, a Principal Broker is responsible for the supervision of all affiliated licensees. Even if the Principal Broker was unaware of a specific violation, the Division of Real Estate may find that inadequate supervision contributed to the misconduct and impose disciplinary action, including license suspension or civil penalties, against the Principal Broker.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
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?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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