Agency
What is a broker's liability for an agent's fraudulent acts in Nevada?
ABrokers have no liability for agents who act independently
BNevada brokers may be vicariously liable for a salesperson's fraud or misrepresentation when the salesperson acted within the scope of their authority and the broker failed to supervise adequately✓ Correct
CBrokers are only liable if they personally directed the fraud
DLiability is limited to the commission amount
Explanation
Under respondeat superior and NRS 645, Nevada brokers may be vicariously liable for their agents' wrongful acts within the scope of employment. Inadequate supervision that allowed the fraud to occur can result in broker liability to harmed clients and NRED disciplinary action.
Related Nevada Agency Questions
- What is an implied agency in Nevada real estate?
- What is 'vicarious liability' in the context of a Nevada real estate brokerage?
- What is 'informed consent' in the context of Nevada dual agency?
- Under Nevada law, when does a buyer's agency agreement typically terminate?
- What is 'ratification' in Nevada real estate agency law?
- What does 'material fact' mean in Nevada real estate disclosure law?
- What is the principle of 'apparent authority' in Nevada agency law?
- A Nevada listing agent discovers during a showing that the roof has a significant hidden leak. The agent must:
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →