A Virginia broker, Sandra, is the principal broker of a firm. One of her salespersons, Greg, is found to have engaged in a pattern of discriminatory steering in violation of the Virginia Fair Housing Law. The VREB investigates and determines that Sandra was aware of Greg's conduct but took no corrective action. Under Virginia License Law, which of the following outcomes is most likely?
Correct Answer
A) Sandra faces disciplinary action for failure to supervise, and Greg faces separate disciplinary action for the fair housing violations
Under 18 VAC 135-20-165, a principal broker has an affirmative duty to supervise all licensees under their authority and to take corrective action when violations are discovered. Sandra's knowledge of Greg's discriminatory conduct and her failure to act constitutes an independent violation of the broker supervision requirement. Greg faces separate disciplinary action for the actual fair housing violations. Both may be disciplined concurrently by the VREB.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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.
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