Knowledge Focus: Broker Salesperson Relationship
Broker Salesperson Relationship
A real estate salesperson is a person licensed in that state to perform real estate activities on behalf of a licensed real estate broker. However, the broker is responsible for all of the actions performed in the course of all real estate business by all persons licensed under the broker. Just the same, all of a salesperson's activities must be performed in the name of the supervising broker. The salesperson can carry out only responsibilities assigned by the broker licensed with and can receive compensation only from that broker. As an agent of the broker, the salesperson has no authority to make contracts with or receive compensation from any other. The broker is liable for the acts of the salesperson within the scope of an employment agreement.
