Massachusetts License Law

A Massachusetts salesperson fails to disclose to a buyer that the property they are showing has a known structural defect. The broker-in-charge is:

ANot responsible because the salesperson acted independently
BPotentially liable for the salesperson's misrepresentation because brokers are responsible for their agents' real estate activities✓ Correct
COnly responsible if the broker knew about the defect
DNot responsible if the salesperson has their own E&O insurance

Explanation

Massachusetts brokers are legally responsible for the supervised real estate activities of their salespersons. If a salesperson makes a misrepresentation in the course of their licensed activities, the broker may be liable.

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