Vicarious Liability & Supervision

A broker can be liable for the acts of affiliated licensees performed within the scope of the brokerage relationship — that's vicarious liability, and it's why license law makes brokers supervise: review contracts and advertising, oversee trust funds, train on fair housing. The principal is generally NOT liable for an agent's independent fraud the principal knew nothing about, but a broker who should have caught it through reasonable supervision can still face discipline. Salespersons act only through their broker: they are paid only by their broker and contracts belong to the brokerage, not the individual agent.