medium · National Real Estate Exam
A broker is sued by a buyer who was defrauded by a salesperson.
The broker's Errors and Omissions (E&O) insurance policy generally covers which type of claim?
- All acts of the salesperson, including criminal theft and conversion of trust funds.
- Intentional misrepresentations, provided the broker was unaware of them.
- Only the broker's direct errors, not the vicarious liability for agents.
- Negligent acts or errors in professional judgment, but typically not intentional fraud.
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