Who is ultimately responsible for a salesperson's actions in a branch office when a buyer sues for damages due to misrepresentation?

In the context of real estate transactions, particularly in a branch office, the supervising broker holds ultimate responsibility for the actions of their salespeople, including any misrepresentation that may occur. This responsibility derives from the legal and ethical standards that govern real estate practices, where brokers must ensure that their agents conduct business in compliance with the law and uphold professional standards.

When a buyer sues for damages resulting from misrepresentation, the supervising broker is accountable because they oversee the branch office operations and the activities of the salespersons. This includes providing training, guidance, and ensuring that proper policies and procedures are followed to prevent misleading or inaccurate information from being presented to clients.

In contrast, while the selling agent may have directly engaged in the actions that led to the misrepresentation, the supervising broker remains liable in a broad sense because the agent acts within the scope of their employment. The buyer cannot be responsible for the salesperson's actions; they are the party seeking remedy for the issue. The real estate board typically serves as a regulatory authority and does not assume responsibility for individual transactions or the behaviors of salespeople. Thus, the supervisor's overarching responsibility is clear in this scenario.