Yes, we know it well...there was a famous case in San Francisco, where years later the seller of a property found that another friend of his had made an offer on his home, but had never seen it.  The agent who had done had died.  The seller sued the broker..."Let the master answer!".  I shudder at companies who have 60 plus agents, and one managing broker...We knew everything our agents were up to.  Ron reviewed everything...A

Barabara I posed this very question in a CE class recently and not many knew what it was - until after I explained it. 

I am familiar with this and mindful of it.  That is why my mind is boggled that so many brokers hire new agents and send them to the wolves without proper training.  They are responsible for the actions of their "children".  Scary!!!

You are completely correct

How often have I heard, even here on AR, that an agent feels they are an "independent contractor" and never (mostly) talks to their broker. How does that broker supervise this agent?

Yes I know this one and pay attention to it. Broker beware if any of your agents fail in their duties or violate the rules!

I was not familiar with this rule so I Googled it.  Wikipedia says it is a US legal doctrine.  Accordingly, since the legal systems in our great nation are different, it would not apply.  Legal counsel in Canada would be able to advise if a similar rule exists in our great nation under common law, civil law and in each of our jurisdictions.

A great learning opp question Barbara.

I would assume this would still apply to contractors?

Barbara Todaro - the brokers goal should be hiring RIGHT agents - and not just any agents who may bring in lawsuits to the brokerage. After all, they are the 'owners' of all problems...

I'm very in touch with my broker about what I'm doing. He's great about being there for us, too. 

I am well aware of this though I don't think the broker is as attentive as he should be.

In our house the vocal one get to say what she pleases..... My vote sometimes does not count.

My broker is certainly mindful of this, and she works hard to keep us in line!

In a regular office, this is where the employer is responsible for the employee's actions, if whatever happened, took place while they were in the workplace.  I do not know what it means in the real estate workplace Barbara Todaro - so I'm reading and learning below!

Basic law 101. I believe most business people are well aware of the common law term.

I am amaze that brokers do not teach agents.

Barbara Todaro I knew this rule and definitely subscribe to it. Admittedly, I had to look it up. I didn't know the Latin phrase.

Yes, and as a managing broker let everyone know!

Yes, mindful, but would hope that "vicarious liability" would not apply to independent contractors, as it is not intended to.

It is beyond comprehension the amount of untrained agents running around. The bigger get bigger and hence the problem in some circles.

We run everything past our Broker...

Go for a post on this.

We have a great Broker and does a good job of managing agents.

I agree with Roy Kelley - this would make an important educational post!

Most brokers IMO tend to ignore this - I seldom speak with my broker unless there is an issue they need to be aware of.

The problem arises IMO that we are independent contractors, and brokers enforce this attitude, but do not follow it. Example is when they require floor duty, which negates the independent contractor contract.

Brokers with 100's of agents - it's impossible for them to monitor every agent and every transaction

This will be a good blog topic for you.

I'm not familiar with it by name, but I am familiar with the principle as discussed here.

Yes I am. Our Broker indeed makes us mindful of this rule!

      I have a Broker friend who just spent $20,000 in legal fees, because of the actions of one of her agents.  It was not covered by E&O.

Respondeat Superior very similar to Mother Superior.  I believe eyes in the back of the head is a requirement and an innate ability to be all-knowing.     

I had a mentor for two years before I went out on my own.