Under what concept is a broker of record held liable for acts committed by agents associated with their agency?

The concept under which a broker of record is held liable for acts committed by agents associated with their agency is known as vicarious liability. This legal principle establishes that an employer or principal can be held responsible for the negligent actions of an employee or agent when such actions occur in the course of their employment or within the scope of their duties.

In the context of real estate, when agents act on behalf of a broker, any wrongdoing or negligence that occurs during their agency relationship can lead to the broker facing liability. This ensures that clients have a point of accountability when dealing with real estate transactions, thereby maintaining a higher standard of professionalism and care within the agency.

Personal liability refers to an individual's own responsibility for their actions, which doesn't apply here since the broker is not directly responsible for the agents' actions but is held accountable due to the agency relationship. Joint liability suggests that two or more parties are independently liable for the same action, while shared liability indicates a distribution of responsibility among parties, which do not accurately represent how vicarious liability functions in this scenario. Vicarious liability specifically addresses this relationship between brokers and agents uniquely.