Agency
In Hawaii, what does 'vicarious liability' mean for a principal broker?
AA. The broker's personal liability for their own acts only
BB. The broker's responsibility for the acts of their affiliated licensees performed within the scope of their agency✓ Correct
CC. A legal theory protecting brokers from salesperson misconduct
DD. Shared liability between the broker and the title company
Explanation
Vicarious liability makes the principal broker responsible for the authorized acts of their affiliated licensees. If a salesperson under the broker's supervision commits a negligent or wrongful act within the scope of their agency work, the broker (and brokerage) may be held liable.
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Key Terms to Know
Agency
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.
State-Specific Concepts
Broker Supervision
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