Agency
Under Maine license law, can a listing broker be liable for misrepresentations made by a salesperson working under them?
ANo, because salespersons are independent contractors
BYes, if the misrepresentation was within the scope of the salesperson's employment✓ Correct
COnly if the broker personally benefited from the misrepresentation
DOnly if the broker knew about the misrepresentation beforehand
Explanation
Under the doctrine of respondeat superior, a broker can be liable for a salesperson's misrepresentations made within the scope of their employment, even if the broker was unaware of them.
People Also Study
Related Maine Questions
- CERCLA (Superfund) in Maine means that a current property owner may be liable for cleanup costs of hazardous substances on their property even if:Environmental
- A Maine seller pays 6% commission on a $500,000 sale. The listing broker and cooperating buyer's broker split the commission 50/50. Each agent within their respective brokerage receives 60% of their brokerage's commission share. The cooperating (buyer's) agent earns:Real Estate Math
- A Maine salesperson who moves to another state but wants to keep their Maine license active must:Maine License Law
- A Maine buyer's agent who discovers their client has made misrepresentations on a mortgage application should:Agency
- Under Maine law, a real estate salesperson license must be held under:Maine License Law
- Under Maine license law, a broker who supervises a salesperson may be held responsible for:Maine License Law
- A Maine real estate salesperson who wishes to upgrade to a broker license must have at least how many years of experience?Maine License Law
- Which fiduciary duty requires a Maine listing agent to inform the seller of all offers received, even after the seller has accepted another offer?Agency
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
License Law
Study This Topic
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →