New York Real Estate Salesperson ExaminationBrokerage and Salesperson ResponsibilitiesMedium
A real estate salesperson is contacted by a former buyer client who expresses dissatisfaction with their newly purchased home, citing several undisclosed defects that they believe the salesperson should have known about. The client threatens to file a complaint with the Department of State. What is the salesperson's immediate and ethically required course of action?
- AAttempt to resolve the issue directly with the client by offering a partial refund of their commission.
- BSeek legal counsel independently to understand their personal liability before informing the broker.
- CAdvise the client that the property was sold 'as-is' and that the salesperson is not liable for undisclosed defects.
- DImmediately report the client's complaint and the details to their supervising broker.
Show answer & explanationAnswer & explanation
Correct answer: D. Immediately report the client's complaint and the details to their supervising broker.
Salespersons operate under the license and supervision of their broker. Any client complaint, especially one threatening action with the Department of State, must be immediately reported to the supervising broker. The broker is ultimately responsible for the salesperson's actions and for handling such disputes.
Why the other options are wrong
- A. Offering a refund or attempting to settle independently is outside the scope of a salesperson's authority and could have serious legal ramifications.
- B. While legal counsel might be necessary, the immediate and primary ethical and legal obligation is to inform the supervising broker first.
- C. This is a legal defense that should be handled by the broker and/or legal counsel, not the salesperson independently.
Salesperson Complaint Protocol
A real estate salesperson must immediately report any client complaints, especially those involving legal threats or regulatory bodies, to their supervising broker. The broker is responsible for overseeing and addressing such issues.
- Salespersons work under broker's license and supervision.
- All client complaints require broker notification.
- Brokers are responsible for resolving disputes involving their salespersons.
- Salespersons should not attempt to resolve legal matters independently.
Memory trick: When Trouble Knocks, Tell the Boss.