New Jersey License Law
Under New Jersey law, a real estate broker who fails to supervise their salespersons and a salesperson commits fraud as a result may face:
ANo liability, as the salesperson is solely responsible
BNJREC disciplinary action for failure to supervise, and potential civil liability for the fraud✓ Correct
COnly a warning letter from the NJREC
DLiability only if the broker personally participated in the fraud
Explanation
A NJ broker has a non-delegable duty to supervise salespersons. Failure to properly supervise is itself a violation of NJ license law, and the broker may face NJREC discipline even if they were unaware of the salesperson's fraud.
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