The concept of 'vicarious liability' in real estate agency means that:
Why The broker can be held liable for the acts of their salespersons done within the scope of employment Is Correct
Answer B: The broker can be held liable for the acts of their salespersons done within the scope of employment
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
Key Agency Terms in This Question
People Also Study
Related California Questions
- An agent who acts beyond the scope of their authority without the principal's consent may expose themselves to liability for:Agency
- Which California state agency is responsible for licensing and regulating real estate brokers and salespersons?DRE & Licensing
- An agent who acts beyond the scope of their authority may be liable for:Agency
- Which California agency is primarily responsible for enforcing state housing law and ensuring cities meet their Regional Housing Needs Allocation (RHNA)?Land Use & Zoning
- Under California law, a real estate broker may be held liable for the acts of their salespersons under the doctrine of:DRE & Licensing
- A real estate agent must disclose their agency relationship to all parties:Agency
- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?Agency
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →