Indiana License Law

An Indiana managing broker who fails to supervise affiliated brokers and a client suffers harm as a result may face:

ANo liability because each affiliated broker is responsible for their own actions
BVicarious liability and disciplinary action for failing to maintain adequate supervision✓ Correct
COnly a warning from IPLA
DLiability only if the affiliated broker is also convicted of a crime

Explanation

A managing broker has a legal duty to supervise affiliated brokers. Failure to adequately supervise affiliated licensees can result in the managing broker facing vicarious liability for the affiliated broker's misconduct and IREC disciplinary action.

Related Indiana Indiana License Law Questions

Practice More Indiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Indiana Quiz →