From  Maryland Association of Realtors

Directions for Update of Broker Policy Manual

Directions for Update of Broker Policy Manual The Maryland Real Estate Commission has adopted a new regulation which establishes the duties of real estate brokers and office managers with respect to the legal requirement of a broker or officer manager to exercise and provide reasonable and adequate supervision over the activities of real estate licensees affiliated with the broker or with the branch office. While the regulation has been previously adopted and approved by the Maryland Real Estate Commission, its enforceability will be effective December 1, 2001. Accordingly, real estate brokers should give this matter their immediate and prompt attention.

Specifically, the new regulation requires the following:

Training or education sessions must be held regularly, at least once every two (2) months;

Experienced supervisory personnel must be available to review and discuss contract provisions, brokerage agreement provisions and advertisements;

The broker, branch office manager or a designee of the broker or branch office manager must review all contracts of sale, leases and brokerage agreements executed by all parties to the contract, lease or brokerage agreement; and The broker, branch office manager or a designee of the broker or branch office manager is required to review all advertisements to be placed by licensees affiliated with the broker.

Additionally, the broker is required to have written policies and such written policies are required to be disseminated to all licensees affiliated with the broker. At a minimum, the written policies must address the following areas:

1. Proper handling of trust monies;
2. Compliance with federal, State and local fair housing laws and regulations;
3. Advertisement requirements applicable to real estate transactions;
4. Review of contracts, leases and brokerage agreements upon execution by all parties to the contract, lease or brokerage agreement;
5. Uses and limitations of unlicensed personal assistants;
6. Disclosure of agency relationship by licensees and residential real estate transactions;
7. Distribution and dissemination of information on new or changed requirements in real estate laws and regulations enacted by local, State and federal governments and regulatory agencies;
8. The obligation of all licensees to comply with all applicable provisions of the Maryland Real Estate Brokers Act, the Code of Ethics as adopted and amended from time to time by the Maryland Real Estate Commission and all applicable local, State and federal laws and regulations;
9. Requirements, restrictions and limitations applicable to the sale or lease of real property personally owned by a licensee and the purchase or lease of real property by a licensee for the licensee=s personal use; and
10. The authorized practice of law by a licensee.

In order to facilitate the use and dissemination of written policies with respect to the ten (10) mandatory areas as described above, the Maryland Association of REALTORS, as a member service, has prepared sample written policies with respect to these ten (10) areas.

Brokers are encouraged to review the sample written policies which may be downloaded for adoption, incorporation and use by brokers.

While not required by the new regulation, it is strongly suggested and recommended that brokers, upon dissemination of the written policies as required under the new regulation, have each Sales Associate and Associate Broker acknowledge their receipt of the written policies by executing a simple statement that they have received the brokerís written policies and the date the policies were received.