What action can a principal broker take if they discover a licensee is violating real estate laws?

A principal broker has a duty to ensure compliance with real estate laws among their licensees. If a licensee is found to be violating these laws, terminating the licensee’s employment is a decisive action that reflects the broker's responsibility to maintain ethical standards and legal compliance within their brokerage.

This action not only protects the integrity of the brokerage but also helps to safeguard clients and the public from potential harm caused by the licensee's violations.

While issuing a warning or contacting the buyer or seller may seem like reasonable alternatives at first glance, they do not address the potential severity of violations effectively. These actions may not convey the seriousness of the situation or ensure that compliance is upheld moving forward. Thus, termination is a clear and straightforward method for the principal broker to take responsibility for the conduct of their licensees.