Question & Answer: 5. An associated licensee has decided to disclose latent defects in properties he lists for the brokerage…..

5. An associated licensee has decided to disclose latent defects in properties he lists for the brokerage firm only if a buyer makes a specific inquiry. The broker-in-charge has never discussed this issue with the licensee and does not require any reporting from associated licensees because they are independent contractors. When the licensing board investigates complaints arising from this practice, they are likely to find the broker-in-charge (Choose from the following options) 1. has no liability; as an independent contractor, the licensee is solely responsible for failing to disclose material facts. 2. liable only if he was aware that the associated licensee had adopted this policy of nondisclosure. 3. liable only if the broker was aware of the defects the associated licensee failed to disclose. 4, shares the liability for this licensee’s wrongdoing.