James, a Washington designated broker, discovers that one of his firm's brokers, Lisa, has been accepting referral fees from a mortgage lender without disclosing this arrangement to her buyer clients. James immediately terminates Lisa's affiliation with the firm and reports her to the DOL. Regarding James's own potential liability, which statement is most accurate under RCW 18.85?
Correct Answer
B) James may face disciplinary action if the DOL finds he failed to adequately supervise Lisa's activities.
Under RCW 18.85, a designated broker is responsible for supervising all licensees affiliated with the firm. If the DOL determines that James failed to implement adequate supervisory systems that would have detected or prevented Lisa's undisclosed referral fee arrangement, James may face disciplinary action for inadequate supervision, even though he acted promptly once he discovered the issue.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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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