Current through Register Vol. 48, No. 38, September 20, 2024
a)
Inspections
1) The Division is authorized to
inspect areas of a sponsoring broker's office that are open and generally
available to the public at any time during normal business hours, with or
without the sponsoring broker's consent. The Division, with at least 24 hours
notice, may conduct a visual and physical inspection of the non-public areas of
a sponsoring broker's office and interview any person, including any licensee
or non-licensee, who may have knowledge or information about the licensee's
real estate practice, with or without the consent of either the sponsoring
broker or designated managing broker. The licensee may have an attorney
present. The Division's action will not be postponed due to a licensee's
attorney's unreasonable delay.
2)
The Division is authorized to inspect a virtual office of the sponsoring
broker, with or without the sponsoring broker's consent. The Division, with at
least 24 hours notice, may conduct an inspection of the digital infrastructure
and all electronic records in the sponsoring broker's virtual office, and
interview any person, including any licensee or non-licensee who may have
knowledge or information about the licensee's real estate practice, with or
without consent of either the sponsoring broker or designated managing broker.
The licensee may have an attorney present. The Division's action will not be
postponed due to a licensee's attorney's unreasonable delay.
3) Upon any written or oral request by the
Division for documents in physical or electronic form, a licensee shall, except
as otherwise allowed by subsection (b), produce the requested documents within
30 days after the request.
b) Escrow Audits
The Division is authorized to audit special accounts, escrow
records and documents related to any escrow accounts maintained by the
licensee. Any records or documents may be provided in physical or electronic
form. Escrow audits may be conducted at any time with the sponsoring broker's
consent or without consent with at least 24 hours notice. The licensee may have
an attorney present. The Division's action will not be postponed due to a
licensee's attorney's unreasonable delay. Escrow audits may include:
1) A review and examination of all required,
original escrow records as set forth in this Part.
2) A review and examination of any document,
including physical or electronic originals, related to a licensee's escrow
accounts.
3) Interviews of any
person, including any licensee or non-licensee, who may have knowledge or
information about the licensee's practices for maintaining and administering
escrow accounts.
4) The Division
may require audits of special accounts of sponsoring brokers by licensed
certified public accountants as set forth in this Section.
A) The Division shall notify in writing the
sponsoring broker responsible for the special accounts that an auditor has been
retained to audit the special accounts, the identity of the auditor or auditing
firm, and that the sponsoring broker shall submit all pertinent records for
audit within 30 days after the written notice.
B) Any licensed certified public accountant
performing an audit for the Division pursuant to the provisions of this Section
or the Act shall provide a written report to the Division, with a copy to the
sponsoring broker, detailing the findings of the auditor, with specific
reference to compliance with the special account requirements of the Act and
this Part.
C) The sponsoring broker
shall be liable for the cost of the audit if an order is issued by the
Department pursuant to Section 20-60 of the Act finding that escrow moneys were
misappropriated by the sponsoring broker or the sponsoring broker's employees,
independent contractors, agents or designees.
c) Pursuant to Section 5-45(d) of the Act,
the Division is authorized to obtain a licensee's original records, including
physical or electronic records, for the purposes of inspection, audit and
reproduction. The Division shall promptly return all original documents or
records to the licensee.
