Linda is a licensed Managing Broker in Washington who supervises several Brokers at her firm. One of her Brokers, Paul, fails to deposit earnest money into the firm's trust account within the required timeframe. Under Washington license law, which of the following is most accurate regarding Linda's potential liability?
Correct Answer
B) Linda may face disciplinary action from the DOL for failure to adequately supervise Paul's handling of trust funds.
Under RCW 18.85, supervisory licensees — including Managing Brokers — have a duty to supervise the licensed activities of Brokers under their oversight. Failure to adequately supervise a subordinate licensee's handling of trust funds is itself a violation of Washington license law and can subject the Managing Broker to DOL disciplinary action, even if the Managing Broker did not personally mishandle the funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
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