Who is responsible for the actions of a licensed salesperson in a real estate transaction?

In a real estate transaction, the broker is responsible for the actions of their licensed salespersons. This responsibility is rooted in the principle of agency in real estate law, which establishes that the broker acts as the supervising authority who oversees the activities of their agents or salespersons.

Brokers are required to ensure their agents comply with all applicable laws, ethical standards, and industry regulations. This implies that if a licensed salesperson engages in actions that lead to legal or financial repercussions—such as misrepresentation or failing to disclose crucial information—the broker holds accountability for those actions. This relationship emphasizes the importance of proper training, guidance, and supervision by the broker to prevent any unethical practices within their team.

The choice of the buyer is incorrect because the responsibility for the salesperson's actions does not fall to the client or customer involved in the transaction; their role is in representations and negotiations, not in oversight of the salesperson. A sales agent, on the other hand, is directly accountable for their own actions but lacks the broader responsibility for supervision. While the broker and seller could jointly be involved in the transaction, ultimately, it is the broker who is tasked with overseeing the salesperson's conduct, making the broker solely responsible for any missteps made by their agents.