Current through Register Vol. 48, No. 38, September 20, 2024
a)
Suspension or Revocation of Sponsoring Broker
Upon the effective date of a suspension or revocation of the
license of a sponsoring broker or sole proprietorship:
1) The licenses of all sponsored licensees
automatically become inactive. Each managing broker licensee may resume
licensed activities only upon securing a new sponsorship, either as a
self-sponsored managing broker or by another sponsoring broker. Each broker or
residential leasing agent may resume licensed activities only upon securing a
sponsorship with another sponsoring broker.
2) Suspensions or revocations of a sponsoring
broker shall not have an effect on the enforceability of any pending, executed
real estate contracts.
A) The sponsoring
broker whose license has been suspended or revoked shall send a written notice,
in physical or electronic form, to all clients with a pending, executed real
estate contract stating that the sponsoring broker's license has been suspended
or revoked and that the suspension or revocation shall not have an effect on
any pending, executed real estate contracts. The notice shall also identify the
name, address, email and telephone number of the person in control of the
escrow money. To the extent clients require additional real estate services,
the notice shall provide that the clients may seek real estate services from
another sponsoring broker.
B) A
suspension or revocation shall not preclude the receipt of any commission or
other compensation earned by the suspended or revoked sponsoring broker or
other formerly sponsored licensee prior to the effective date of the suspension
or revocation of the sponsoring broker.
3) A broker shall not be entitled to
compensation if the suspension or revocation directly relates to the
transaction for which the compensation was earned. If the broker already
received compensation related to the transaction leading to the suspension or
revocation of the license, the Department or Board may consider that fact when
imposing discipline.
b)
Suspension or Revocation of a Designated Managing Broker
In the event of a suspension or revocation of a designated
managing broker license, offices may operate for 15 days without a replacement
designated managing broker. Within 15 days after a suspension or revocation of
a designated managing broker license, if a replacement designated managing
broker has not been secured or a written request for authorization to continue
operation has not been submitted to the Division, the offices must cease
licensed activities.
