Question: Question 1 & Explain Answer Please An associated licensee has decided to disclose latent defects in properties he lists for the brokerage firm only if
Question 1 & Explain Answer Please
An associated licensee has decided to disclose latent defects in properties he lists for the brokerage firm only if a buyer makes a specific inquiry. The broker-in-charge has never discussed this issue with the licensee and does not require any reporting from associated licensees because they are independent contractors. When the licensing board investigates complaints arising from this practice, they are likely to find the broker-in-charge
A - has no liability; as an independent contractor, the licensee is solely responsible for failing to disclose material facts. B - liable only if he was aware that the associated licensee had adopted this policy of nondisclosure. C - liable only if the broker was aware of the defects the associated licensee failed to disclose. D - shares the liability for this licensee's wrongdoing.
Question 2
A broker allowed one of her licensees to complete an entire sale on his own, as she did NOT want to be bothered with checking paperwork. The licensee unknowingly completed a fraudulent sale with straw buyers.
The broker
A - is not responsible because she never saw the deal. B - is responsible because she is supposed to supervise. C - is responsible if her manual for licensees did not specifically prohibit this behavior. D - is not responsible as long as she provided a manual for licensees that clearly prohibited this behavior
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
