Agency
What is 'vicarious liability' in the context of a Nevada real estate brokerage?
AA broker's personal liability for their own actions only
BThe broker's potential legal liability for the acts and omissions of their licensed agents, even if the broker did not personally participate in or know about the wrongful conduct✓ Correct
CLiability shared equally among all agents in a brokerage
DLiability that is transferred to the seller in every transaction
Explanation
Under Nevada law and the doctrine of respondeat superior, a broker may be held vicariously liable for the wrongful acts of their agents committed within the scope of employment. This underscores why Nevada brokers must supervise their licensees, maintain proper policies and procedures, and carry adequate errors and omissions (E&O) insurance.
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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.
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