Several changes in Commission rules became effective January 1. The newly adopted changes include:
Agency Agreements and Disclosure
• A requirement that written agency agreements be signed.
• A provision that the Commission will not issue a license to a firm when another firm is licensed under the same name or using the name as a trade name.
• A clarification that LLCs and other eligible entities organized solely for receipt of compensation which are treated as “Subchapter S Corporations” by the Internal Revenue Service are eligible for the same exemption from the broker-in-charge requirement as corporations.
• A provision that brokers-in-charge who fail to take the BIC Course within the deadline are required to take the course before being re-designated as a broker-in-charge.
• A provision permitting former brokers-in-charge to remain eligible to serve as broker-in-charge if they continue taking the Broker-in-Charge Annual Review (BICAR) course every year and remain on active status.
• A clarification of continuing education requirements for nonresident brokers and nonresident BICs.
Residential Property Disclosure Statement
• A revision of the statement to require sellers to disclose whether the road that serves the property is maintained publicly or privately and to require sellers to disclose whether proper building permitting has been obtained for additions and improvements.
License Date Reinstatement
• A provision that the license date for a licensee who obtains the reinstatement of an expired license is the date of reinstatement.
• A requirement that brokers’ websites identify the broker and his or her firm in a clear and conspicuous manner.
• A new rule prohibiting brokers from disclosing the price and material terms of an offer to a competing buyer.
This article came from the January 2008-Vol38-3 edition of the bulletin.