§16-99-3

Conduct

§16-99-3(k) The proposed change clarifies and allows inactive, forfeited, and deceased licensees to receive compensation directly from a former brokerage firm for commissions earned while affiliated with that former brokerage firm.

New Rule
Old Rule
The brokerage firm shall not compensate a licensee of another brokerage firm in connection with a real estate transaction without paying directly or causing the payment to be made directly to the other brokerage firm. This requirement shall not apply in cases where the licensee or the licensee’s estate is receiving compensation from a former brokerage firm for commission earned while the licensee was affiliated with that former brokerage firm, regardless of whether the licensee is on inactive status or on forfeited status or deceased.
The brokerage firm shall not compensate a licensee of another brokerage firm in connection with a real estate transaction without paying directly or causing the payment to be made directly to the other brokerage firm. This requirement shall not apply in cases where the licensee is receiving compensation from a former brokerage firm for commission earned while affiliated with that former brokerage firm.

§16-99-3(o) The proposed change clarifies the circumstances under which a temporary principal broker and/or a broker-in-charge may be appointed. This amendment is intended to maintain consumer protection by ensuring proper management and oversight of a brokerage during the protracted absence of a principal broker and/or broker-in-charge.

New Rule
Old Rule
Prior. to the time the principal broker or the broker-in-charge is absent from the principal place of business for more than thirty calendar days, and no other broker-in-charge is registered for the principal place of business, the principal broker shall submit to the commission a signed, written notification of the absence designating a temporary principal broker or temporary broker-in-charge, who shall acknowledge the temporary designation by signing the notification. In case of prolonged illness or death where the principal broker or broker-in-charge is unable to act, another broker shall be designated as the temporary principal broker or broker-in-charge within thirty days of the illness or death with appropriate notification and statement of a licensed medical doctor certifying to the commission the inability of the broker to practice.

A temporary principal broker or broker-in-charge arrangement shall not exceed a period of six months unless, prior to expiration of the initial six-month period, the principal broker requests and obtains, upon showing of good cause for such extension, approval of the commission to extend the temporary arrangement for up to an additional six months.

Prior to the time the principal broker or the broker in charge is absent from the principal place of business for more than thirty calendar days, and no other broker in charge is registered with the principal place of business, the principal broker shall submit to the commission a signed, written notification of the absence designating a temporary principal broker or temporary broker in charge, who shall acknowledge the temporary designation by signing the notification. In case of prolonged illness or death where the principal broker or broker in charge is unable to act, another broker shall be designated as the temporary principal broker or broker in charge within thirty days of the illness or death with appropriate notification to the commission. A temporary principal broker or broker in charge arrangement shall not exceed a period of six months, with the right to extend prior to expiration for another six months for good cause and with the approval of the commission.