Supervisors Not Liable For Brokers' Bad Realty Deals: Court

Law360, New York (June 19, 2012, 5:54 PM EDT) -- Supervisors at corporate real estate brokerages can't be held liable for their employees' bad real estate deals under California law, even though those so-called designated officers are legally required to oversee brokers' agents and salespeople, a state appeals court ruled Monday.

The published decision, which affirms a Los Angeles County Superior Court’s ruling, said that designated officers — who by law are responsible for supervision and control of a corporate broker’s employees — owe that responsibility only to the corporation and not to outside entities. The...
To view the full article, register now.