Current through Register Vol. 43, No. 52, December 26, 2024
(a) Failure of a
supervising broker or branch broker to properly supervise the activities of an
associated or employed salesperson or associate broker shall include the
following:
(1) Allowing a person not licensed
by the commission to engage in activities requiring a license on behalf of the
broker or brokerage firm, unless the person is exempt from licensure pursuant
to K.S.A. 58-3037, and amendments thereto;
(2) allowing an associated or employed
salesperson or associate broker to engage in dual agency or activities
requiring an active real estate license while that salesperson's or associate
broker's license is expired, inactive, pending transfer, suspended, or
revoked;
(3) failure to take action
to ensure that an associated or employed salesperson or associate broker
complies with any restrictions or conditions placed upon that salesperson's or
associate broker's license;
(4)
directing or instructing an associated or employed salesperson or associate
broker to take any action in violation of the real estate brokers' and
salespersons' license act, the brokerage relationships in real estate
transactions act, or any commission regulations;
(5) failing to take action to prevent an
associated or employed salesperson or associate broker from taking any action
in violation of the real estate brokers' and salespersons' license act, the
brokerage relationships in real estate transactions act, or any commission
regulations, if the supervising broker or branch broker has actual knowledge of
the impending violation;
(6)
failing to timely take action to correct or mitigate a violation of the real
estate brokers' and salespersons' license act, the brokerage relationships in
real estate transactions act, or any commission regulations by an associated or
employed salesperson or associate broker, if the supervising broker or branch
broker has actual knowledge of the violation;
(7) failing to ensure that all contracts and
forms used by an associated or employed salesperson or associate broker are
reviewed for accuracy and compliance with applicable statutes, regulations, and
office policies;
(8) failing to
ensure that all advertising by associated or employed salespersons or associate
brokers complies with applicable statutes, regulations, and office policies;
and
(9) failing to ensure that all
associated or employed salespersons and associate brokers are able to maintain
reasonable and timely communication with the supervising broker, branch broker,
or a competent designee.
(b) Any of the following may be considered
mitigating factors regarding an alleged violation of subsection (a):
(1) The supervising broker or branch broker
has implemented policies and procedures to prevent an associated or employed
salesperson or associate broker from violating a restriction or condition
placed upon the license or from committing a violation of the real estate
brokers' and salespersons' license act, the brokerage relationships in real
estate transactions act, or any commission regulations, as demonstrated by both
of the following:
(A) The supervising broker
or branch broker has written policies and procedures in place to provide
guidance in real estate practice law to the associated or employed salesperson
or associate broker.
(B) The
supervising broker or branch broker demonstrates that the associated or
employed salesperson or associate broker received training on the written
policies and procedures specified in paragraph (b)(1)(A).
(2) The supervising broker or branch broker
provides access to either of the following:
(A) Ongoing training or education sessions
for associated or employed salespersons or associate brokers; or
(B) experienced personnel to review the
accuracy of documents and discuss real estate practice law with associated or
employed salespersons or associate brokers.
(3) The supervising broker has systems in
place to ensure proper management and control of documents and records relating
to licensing requirements and transactions.
(c) Any of the following may be considered
aggravating factors with respect to an alleged violation of subsection (a):
(1) The commission has previously disciplined
the supervising broker or branch broker for failure to properly supervise
associated or employed salespersons or associate brokers.
(2) The supervising broker or branch broker
did not have policies and procedures in place as described in paragraph
(b)(1)(A) at the time of the violation.
(3) The supervising broker or branch broker
is unable to demonstrate that the associated or employed salesperson or
associate broker who committed the violation received adequate training on
applicable statutory, regulatory, and office policy requirements.
(d) Nothing in this regulation
shall prohibit a broker from delegating supervisory duties to competent
personnel or affiliated licensees. The supervising broker or branch broker
shall be responsible for ensuring compliance with commission statutes and
regulations by all personnel and affiliated licensees under the supervising
broker's or branch broker's supervision.