medium · National Real Estate Exam agency
A broker is found to have 'constructive knowledge' of a salesperson's ongoing practice of misrepresenting acreage.
What does 'constructive knowledge' imply in a legal context?
- The broker should have known about the conduct through the exercise of reasonable and diligent supervision.
- The salesperson informed the broker in writing of the acts before continuing the misrepresentations.
- The acts were minor and isolated in nature, so the law presumes that constructive knowledge did not truly exist.
- The broker personally witnessed each misrepresentation as it happened but chose not to participate in it directly.
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