Delaware License LawIntermediateDelaware Exam
A Delaware real estate broker supervises a salesperson who makes fraudulent misrepresentations to a buyer. Can the broker be held responsible?
ANo — the broker is only responsible for their own actions, not those of supervised licensees
BYes — the broker has supervisory responsibility and may face discipline if they knew or should have known about the misrepresentations, or failed to properly superviseCorrect
COnly if the buyer can prove the broker personally directed the misrepresentation
DOnly if the broker shared in the commission from the affected transaction
Why Yes — the broker has supervisory responsibility and may face discipline if they knew or should have known about the misrepresentations, or failed to properly supervise Is Correct
Answer B: Yes — the broker has supervisory responsibility and may face discipline if they knew or should have known about the misrepresentations, or failed to properly supervise
Delaware brokers have supervisory responsibility for the licensees working under them. A broker may face discipline if they failed to properly supervise, knew of the misconduct and failed to act, or directed the misconduct.
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