Md. Code Regs. 09.11.05.03 - Reasonable and Adequate Supervision

A. Initially, the operations characteristics of the brokerage firm shall be considered by determining the:

(1) Number of licensed salespersons and associate brokers affiliated with the broker;

(2) Number of branch offices and salespersons assigned to each office;

(3) Number of management personnel in each office;

(4) Normal and routine working days and hours of the broker and management personnel;

(5) Type of real estate activities of firm.

B. Factors to be considered in determining whether supervision is reasonable and adequate include, but are not limited to, the following:

(1) Availability of:

(a) Training or education sessions held regularly at least once every 2 months;

(b) Experienced supervisory personnel to review and discuss:

(i) Contract provisions;

(ii) Brokerage agreement provisions; and

(iii) Advertising;

(c) Written procedures and policies which provide clear guidance in the following areas:

(i) Proper handling of deposit monies and other funds in accordance with Business Occupations and Professions Article, §§ 17-501 -17-508, Annotated Code of Maryland;

(ii) Compliance with federal, State, and local fair housing laws and regulations;

(iii) Advertisement requirements applicable to real estate transactions;

(iv) Review of contracts, leases, and brokerage agreements upon execution by all parties to the contract, lease, or brokerage agreement;

(v) Use and limitations of unlicensed personal assistants;

(vi) Disclosure of agency relationships by licensees in residential real estate transactions;

(vii) 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;

(viii) The obligation of all licensees to comply with all applicable provisions of Business Occupations and Professions Article, Title 17, Annotated Code of Maryland (the Maryland Real Estate Brokers Act), the Code of Ethics as adopted and as amended from time to time by the Commission, and all applicable local, State, and federal laws and regulations;

(ix) 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

(x) The unauthorized practice of law by a licensee; and

(2) Evidence of:

(a) Records of attendance at sales meetings;

(b) Review by the broker, branch office manager, or designee of the broker or branch office manager of contracts of sale, leases, and brokerage agreements executed by all parties to the contract, lease, or brokerage agreement;

(c) Review by the broker, branch office manager, or designee of the broker or branch office manager of advertisements to be placed by licensees affiliated with the broker;

(d) Compliance with the written policies and procedures as specified in §B(1)(c) of this regulation; and

(e) Dissemination of the written policies and procedures as specified in §B(1)(c) of this regulation to licensees affiliated with the broker.

C. On a showing that the broker has not provided reasonable and adequate supervision in the areas under §B of this regulation, the burden of proof shall be on the broker to show that the supervision which the broker did provide was reasonable and adequate.

Notes

Md. Code Regs. 09.11.05.03