Arizona License LawIntermediateArizona Exam

A licensee's designated broker supervises the licensee's real estate activities. If the licensee commits fraud, the designated broker may be subject to disciplinary action by ADRE if the broker:

AWas not physically present during the transaction
BFailed to exercise reasonable supervision over the licenseeCorrect
CDid not personally benefit from the fraud
DReported the fraud to ADRE within 30 days

Why Failed to exercise reasonable supervision over the licensee Is Correct

Answer B: Failed to exercise reasonable supervision over the licensee

Arizona law holds designated brokers responsible for exercising reasonable supervision over their affiliated licensees. A broker who fails to supervise adequately may face ADRE disciplinary action even if they did not personally commit the violation.

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