Delaware License Law

Under Delaware license law, a broker who discovers that an affiliated salesperson has committed fraud on a client must:

AAllow the salesperson to resolve the matter privately with the client
BReport the misconduct to the Delaware Real Estate Commission✓ Correct
CPay the client directly from the broker's funds
DTerminate the salesperson only if the Commission requests it

Explanation

A managing broker who learns of affiliated salesperson misconduct has an obligation to report the conduct to the Delaware Real Estate Commission and may face disciplinary action themselves for failing to supervise properly.

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