Agency
What is 'respondeat superior' and how does it apply to Delaware real estate brokerages?
AA Latin principle requiring superior performance from licensed agents
BA legal doctrine holding an employer (broker) vicariously liable for the wrongful acts of their employees (salespersons) committed within the scope of employment✓ Correct
CA requirement that senior agents supervise junior agents in all client meetings
DA rule requiring all contracts to be reviewed by the broker before execution
Explanation
Respondeat superior ('let the master answer') holds employers vicariously liable for their employees' torts committed within the scope of employment. In Delaware real estate, a broker can be held liable for their salesperson's negligence or misconduct in the course of real estate activities — another reason proper supervision and training are essential.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate 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.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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