When a broker employs a salesperson, California law requires the broker to:
Correct Answer
B) exercise reasonable supervision over the activities the salesperson performs
Business and Professions Code section 10177(h) makes a broker's failure to exercise reasonable supervision over a salesperson's activities a ground for disciplining the broker, and Commissioner's Regulation 2725 sets out what supervision means in practice: written policies, rules, procedures, and systems for reviewing documents that may materially affect the parties' rights, for handling trust funds, for advertising, for compliance with anti-discrimination law, and for reporting licensee activity to the broker. The duty is systemic rather than clerical, so it neither requires the broker to touch every page nor is satisfied by buying insurance. A broker can lose a license under it even where the broker had no hand in the salesperson's misconduct.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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