California Real Estate SalespersonLaws of Agency and Fiduciary DutiesMedium
A salesperson working under a broker commits a violation of the Real Estate Law while acting within the scope of employment. Which statement best reflects the broker's responsibility under California law?
- AThe broker is responsible for supervising the salesperson and may face discipline for inadequate supervision
- BThe broker has no liability unless personally present during the violation
- CThe salesperson alone is responsible since they hold an individual license
- DLiability shifts entirely to the buyer's agent if one was involved
Show answer & explanationAnswer & explanation
Correct answer: A. The broker is responsible for supervising the salesperson and may face discipline for inadequate supervision
California law requires a responsible broker to reasonably supervise the activities of salespersons licensed under them; failure to do so can result in discipline against the broker under Business and Professions Code 10159.2, even if the broker was not personally involved in the violation.
Why the other options are wrong
- B. Physical presence is not required for supervisory liability to attach.
- C. Salespersons must be supervised; sole individual responsibility ignores the broker's duty.
- D. Liability does not shift to an unrelated buyer's agent.
Broker Supervision Duty
A broker must reasonably supervise salespersons' activities and can be disciplined for inadequate supervision even without direct involvement.
- Based on Business and Professions Code 10159.2
- Applies to acts within scope of employment
- Broker discipline can occur independent of salesperson discipline
Memory trick: The broker is the umbrella — responsible for everyone standing under it.