Agency
Vicarious liability
Liability imposed on one party for another’s acts because of their relationship
A broker can be liable for a salesperson’s misrepresentation made in the course of their work. That is why supervision is a licensing obligation rather than a management preference, and why written office policies exist.
How the exam asks about it
It sits in the risk management part of the outline alongside errors and omissions insurance and compliance with federal regulation.
Related terms
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