Agency
A West Virginia agent who acts within the scope of their authority and injures a third party may create liability for:
AThe agent only, never the broker
BBoth the agent and the sponsoring broker under the principle of respondeat superior✓ Correct
COnly the principal (seller or buyer) who hired the agent
DOnly the title company handling the transaction
Explanation
Under respondeat superior ('let the master answer'), a principal (broker) can be held liable for wrongful acts of their agent (salesperson) committed within the scope of employment. The sponsoring broker bears supervisory responsibility.
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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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