Florida License Law

A Florida broker's sales associate commits escrow fraud while acting within the scope of their employment. In addition to FREC discipline of the sales associate, FREC may also discipline:

AThe employing broker for failure to properly supervise✓ Correct
BThe brokerage entity's other agents
CThe title company that processed the closing
DThe bank holding the escrow account

Explanation

Florida license law holds brokers responsible for the acts of their licensed associates acting within the scope of employment. A broker who fails to adequately supervise their sales associates may be disciplined by FREC for failure to supervise, even if the broker did not personally participate in the fraud. This creates a strong incentive for brokers to maintain proper oversight of their sales force.

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