Nevada License Law

What is the duty of a Nevada broker when their salesperson is found to have engaged in fraud?

AThe broker has no responsibility for a salesperson's independent actions
BThe broker may be held vicariously liable and subject to disciplinary action for failing to supervise the salesperson✓ Correct
CThe broker must only report the incident to NAR
DThe broker must immediately return all commissions from that transaction

Explanation

Nevada brokers have a duty to supervise their licensees. If a salesperson commits fraud or other violations, the broker may face disciplinary action from NRED for failure to supervise and may be vicariously liable to harmed parties depending on the circumstances.

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