Vicarious liability; protections when working with a statutory agent.

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(a) A customer or client shall not be liable for a wrongful act, error, omission, or misrepresentation of the licensee except to the extent the customer or client had actual knowledge of the wrongful act, error, omission, or misrepresentation.

(b) A licensee shall not be liable for a wrongful act, error, omission, or misrepresentation of the customer or client except to the extent the licensee had actual knowledge of the wrongful act, error, omission, or misrepresentation.

(c) Nothing in this section shall be construed to diminish or limit any of the other duties or responsibilities of the licensee under this chapter, or the rules promulgated hereunder.

(d) This chapter does not otherwise limit the liability of a broker, for an act, error, or omission of a licensee in the brokerage organization. Notwithstanding any other provision of this chapter, the employer of the licensee is vicariously liable as the employer would be under the doctrine of respondeat superior whether the licensee is employed by the broker or brokerage organization as an employee or as an independent contractor.

(e) This section does not apply if the licensee or brokerage organization is hired as a common law agent.


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