Priya is a licensed real estate broker in Virginia and operates her own brokerage. She has three salespersons affiliated with her firm. Under Virginia law, what is Priya's role called, and what is her primary legal obligation with respect to her affiliated salespersons?
Correct Answer
A) She is a principal broker, and she is legally responsible for the actions of her affiliated salespersons conducted within the scope of their real estate activities
Under Virginia law and 18 VAC 135-20, a broker who operates their own brokerage and is responsible for the supervision of affiliated licensees is the principal broker. The principal broker bears legal responsibility for the real estate activities conducted by affiliated salespersons within the scope of their licensed activities. This supervisory responsibility is a core obligation under VREB regulations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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