Broker-in-Charge Course Outline

BROKER IN CHARGE

approved for 15-hours of Continuing Education (HOT135)

Table of Contents

I. Page

5 Overview

Considering being a broker in charge?

How to use the Code and Rules Book

II. 5 General Requirement

License Requirement

License Exemptions

Types of Licensed Business Operations

Trade Names

Sole Proprietor— Individual

Entities

Change in Managing Brokers

Corporation

Association (Limited Liability Company)

Partnership

Branch Office

Broker Over Multiple Entities at One Location

Is There a Broker in Charge?

Change in Business Structure or Merger

Cessation of Activities of Partial Closing of Business

Death or Disability of Broker

Name Change

III 11 Broker Responsibilities

Broker Required to be Available

Loaning a Broker’s License

Temporary Absence of Broker

License Renewal, Expiration and Reinstatement

Courtesy Renewal Reminder

Sole Proprietor License Expiration

Entity License Expiration

License Expiration Penalties

Failure to Renew Individual and Entity License or Complete CE

General Reinstatement Provisions

Continuing Education Requirements

Broker Should Set by Example

Postlicense Education Requirements

Inactive License Status

Failure to comply with Rules

IV. 14 Supervision

Independent Contractor or Employee

Company Policies

Broker Responsible for Acts of Associates

Associates Activities Performed Outside Broker’s Knowledge

Teams

Training New Associates

Mentoring — Set by Example

Improper Acts of Associates

Associate’s Corporation or Association

Licensed and Unlicensed Assistants

Compensation to Associates

Commission Disputes

Compensation to Disassociated Associates

Broker Refusal to Release Associate

Broker Release of Associate

Associate Transfer From One Broker to Another

Commission’s Suggestions on Supervising

V. 20 Place of Business

Office Location

Office Located in Residence

Office Identification

Branch Office Identification

Associate’s Not Permitted to Have an Office

Licenses Must be on Display

Broker for More Than One Firm at Same Location

Maintenance and Retention of Records

VI. 21 Advertising

Marketing Claims

Owner of Entity Not Licensed or is an Associate

Team Names

Internet Advertising

Use of the term “agent”

Use of the term “Broker”

Inactive Status

Nicknames

Franchise Advertising

Moving vans, Trucks and Trailers

Signs

Misleading Advertising

Inducements and Rebates

Associate must Advertise in Broker Name

Associate’s Advertising

Licensee Purchasing, Selling, Exchanging, Renting or Leasing Must Disclose

Licensed Status

VII. 23 Disclosures

Broker Relationships

Beneficial Interest

Residential Property Condition Disclosure Act

Disclaimer Form

Exemptions

Lead-Based Paint Disclosure on Homes Built Prior to 1978

Psychologically Impacted Real Estate

Megan’s Law

VIII. 25 Trust Accounts

Purpose

General Requirements

Trust Accounts Must Be Registered With Commission

Number of Trust Accounts

Deposits

Interest Bearing Account

Trust Account Not Mandatory

Inform All Parties Pertaining to Escrow

Interpleader/Return of Earnest Money or Items

Bookkeeping/Record Retention

Trust Accounts and the Associate

Commissions and Trust Accounts

Excess Funds in Trust Account

Errors in Trust Account

Operating Account

Transferring or Withdrawing Trust Funds

Post-dated and Returned Checks

Trust Account and Property Management

Unclaimed Property (Trust Funds)

IX. 29 Investigations

Complaint Process

Office Investigation

Cause for Suspension or Revocation of License, Prohibited Acts and

Substantial Misrepresentations

Guidelines for Suspended or Revoked Broker or Associate

Prohibition from Participating in Entity That Has Been Revoked or Currently

Suspended

X. Management Skills

Office Management — A Guide to Success (Robert L. Herd)

Attachments:

A. Broker Licensing Options

B. Complaint Filing Instructions

C. Complaint Form

D. Office Inspection Form

E. Report of Unclaimed Property Form

F. 24 Miscellaneous Forms to be Filed with the Commission

Final Exam Has 185 Questions Covering Every Aspect of the Course. This course is essential if you are running a Real Estate Company.

*Approved for 15-Hours of Broker School Credit -- If you have already completed a 75-hour Broker School in the Past.

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