17 PROPOSED ADMINISTRATIVE RULES

 

 

ORR # 2001-071

 

DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES DIRECTORS OFFICE

REAL ESTATE BROKERS AND SALESPERSONS

 

Filed with the Secretary of State on These rules take effect September 1, 2002

 

(By authority conferred on the director of the department of consumer and industry services by sections 205, 308, and 2504 of 1980 P.A. 299, MCL 339.205, 339.308, and 339.2504 and Executive Reorganization

Order No. 1996-2, MCL 445.2001)

 

R 339.22101, R339.22103, R 339.22201, R 339.22203, R 339.22205, R 339.22207, R 339.22209, R

339.22211, R 339.22213, R 339.22215, R 339.22301, R 339.22305, R 339.22307, R 339.22309, R

339.22311, R 339.22313, R 339.22315, R 339.22317, R 339.22321, R 339.22323, R 339.22325, R

339.22329, R 339.22333, R 339.  22337, R 339.22339, R 339.22401, R 339.22513, R 339.22515, R

339.22519, R 339.22523, R 339.22527, R 339.22601, R 339.22609.  R 339.22613, R 339.22631, R

339.22651,  R  339.22655,  R  339.22659,  and  R  339.22663  of  the  Michigan  Administrative  Code  are amended, R 339.22525, R 339.22633, R 339.22635, R 339.22637, and R 339.22661 of the Code are

rescinded, and R 339.22310, R 339.22602, R 339.22604, R 339.22605, R 339.22606, and R 339.22654

are added to the Code as follows:

 

PART 1. GENERAL PROVISIONS

 

R 339.22101 Definitions.

Rule 101. (1) As used in these rules:

“ADVERTISING” MEANS ALL FORMS OF REPRESENTATION

PROMOTION AND SOLICITATION DISSEMINATED IN ANY MANNER AND BY ANY MEANS OF COMMUNICATION TO CONSUMERS FOR ANY PURPOSE RELATED TO ACTIVITIES REGULATED UNDER ARTICLE 25 OF THE CODE.

(B)    “ASSOCIATION” AS REFERRED TO IN SECTION 2505 (1) OF THE CODE INCLUDES A LIMITED LIABILITY COMPANY.

(C)   (a) “Clock CLASSROOM hour” means a period of not less FEWER than 50 minutes of APPROVED EDUCATIONAL COURSES actual classroom instruction, not including outside assignments and reading.

(D)  “Code” means Act 299 of the Public Acts of 1980, as amended,

being 339.101 et seq. of the Michigan Compiled Laws. 1980 PA 299, MCL 339.101 ET SEQ.

(E)  (c) “Continuing education course” means a course that is represented as fulfilling the requirements of section 2504(4) of the code.

 

 

 

(F)  (d) "Coordinator” means the individual who assumes the responsibility under these rules for offering courses relating to the activities of real estate brokers or real estate salespersons.

(G)    (e) “Credit hour” means not less FEWER than 10 clock hours of APPROVED EDUCATIONAL COURSES. actual classroom instruction.

(H)  ADISTANCE LEARNING” MEANS EITHER OF THE FOLLOWING:

(i)      APPROVED COURSES WHERE INSTRUCTOR AND STUDENT MAY BE APART AND INSTRUCTION TAKES PLACE THROUGH OTHER MEDIA.

(ii)     APPROVED COURSES WHICH INCLUDE BUT ARE NOT LIMITED TO INSTRUCTION PRESENTED THROUGH INTERACTIVE CLASSROOMS, COMPUTER CONFERENCING, AND INTERACTIVE COMPUTER SYSTEMS AND WHICH FULFILL THE REQUIREMENTS OF SECTION 2504(4) OF THE CODE.

(I)      “DIRECTLY” MEANS IN A DIRECT WAY MARKED BY THE ABSENCE OF ANY INTERVENTION, INSTRUMENTALITY, OR INFLUENCE; NOT CONCEALED, NOT DISGUISED.

(J)     “ELECTRONIC COMMUNICATION” MEANS A COMMUNICATION CREATED, STORED, GENERATED, RECEIVED, OR TRANSMITTED BY ELECTRONIC MEANS IN A FORMAT THAT ALLOWS TEXT TO BE VISUALLY DISPLAYED OR PRINTED.

(K)    “INDIRECTLY” MEANS NOT RESULTING OR OCCURRING DIRECTLY FROM OBVIOUS MEANS OR CAUSE; REMOTELY CONNECTED, CONCEALED, OR DISGUISED.

(L)  (f) “Instructor” means an individual who possesses either ANY of the following qualifications:

(i)        Has not FEWER less than 2 years of full-time practical experience, or 2 years of postsecondary school education, in the specific area of real estate or related fields taught by the INSTRUCTOR lecturer.

(ii)       Has passed an examination for certification as an instructor or lecturer that is acceptable to the board and the department.

(iii)             FOR DISTANCE LEARNING INSTRUCTION ONLY, BEFORE RECEIVING APPROVAL BY THE DEPARTMENT, AN INSTRUCTOR WHO MEETS THE CRITERIA IN PARAGRAPHS (I) OR (II) OF THIS SUBDIVISON SHALL ALSO PROVIDE DOCUMENTATION OF NOT FEWER THAN 2 YEARS OF TRAINING OR EDUCATION IN THE TECHNOLOGIES AND STRATEGIES FOR DELIVERING DISTANCE EDUCATION.

(M)  (g) “Licensee” means a person who is licensed under article 25 of the code.

(N)  “NON-PRINCIPAL ASSOCIATE BROKER,” REFERENCED IN SECTION 2508 (4) AND 2509 (3) OF THE CODE, MEANS AN INDIVIDUAL WHO IS NOT A SOLE PROPRIETOR, AN OFFICER OR EQUITY OWNER, A MEMBER, MANAGER, OR GENERAL PARTNER, IN THE ASSOCIATION, PARTNERSHIP, CORPORATION, OR OTHER ENTITY AUTHORIZED BY THESTATE OF MICHIGAN UNDER WHICH THE BUSINESS IS ORGANIZED, AND WHO DOES NOT HOLD A POSITION OF AUTHORITY IN THE ENTITY.

(0) “PRINCIPAL ASSOCIATE BROKER,” REFERENCED IN SECTIONS 2508 AND 2509 OF THE CODE, MEANS AN INDIVIDUAL WHO IS A SOLE PROPRIETOR, MEMBER, MANAGER, GENERAL PARTNER, EQUITY OWNER, OR OFFICER OF THE CORPORATION, ASSOCIATION, GENERAL PARTNERSHIP, OR OTHER ENTITY AUTHORIZED BY THE STATE OF MICHIGAN UNDER WHICH THE BUSINESS IS ORGANIZED, AND WHO HOLDS A POSITION OF AUTHORITY IN THE ENTITY.

(P)   (h) “Prelicensure real estate course” or “prelicensure course” means a course that is represented to the public as fulfilling, in whole or in part, the requirements of section 2504 (l) and (2) of the code.

 

 

(Q)   (i) “Real estate school” or “institution” means AN APPROVED any entity which represents to the public that any of its courses fulfill, in whole or in part, the requirements of section 2504 (l) and (2) of the code for prelicensure education. THIS ENTITY SHALL ALSO MEET THE REQUIREMENTS AS SET FORTH IN SECTION 2404 (8) OF THE CODE..

(R)  ASERVICE PROVISION AGREEMENT” MEANS ANY AGREEMENT BETWEEN THE BROKER AND CLIENT WHICH ESTABLISHES AN AGENCY RELATIONSHIP. AN AGREEMENT MAY INCLUDE, BUT IS NOT LIMITED TO, ANY OF THE FOLLOWING:

A LISTING AGREEMENT.

A BUYERS AGENCY AGREEMENT.

A DESIGNATED AGENCY AGREEMENT.

A PROPERTY MANAGEMENT EMPLOYMENT CONTRACT.

(S)  (j) “Sponsor” means an APPROVED PERSON, AS DEFINED IN section 105 (5) OF THE CODE entity which represents to the public that any of its courses fulfill the requirements of section 2504 (4) of the code for continuing education.

(T)   “STUDENT” MEANS A MEMBER OF THE PUBLIC OR A LICENSEE WHO IS ATTENDING AN APPROVED COURSE DESIGNED TO FULFILL THE REQUIREMENTS OF SECTION 2504 OF THE CODE.

(U)  (k) “Supervision” AS DEFINED IN R 339.22310 means the overseeing of, or participation in, the work of another LICENSED individual by a broker or PRINCIPAL associate broker. in circumstances where, at minimum, all of the following conditions exist:

(i)         Direct communication in person or by radio, telephone, or telecommunication between the supervised individual and a licensed broker or associate broker is available on a continuous basis.

(ii)    A licensed broker or associate broker is available on a regularly scheduled basis to do all of the following: (a) review the practice of the supervised individual.

(b) provide consultation to the supervised individual. (c) review reports.

(d) further educate the supervised individual in the performance of the individual’s functions.

(iii)     The licensed supervising broker or associated broker provides predetermined operating policies and procedures.

(V)     “TRANSFER” MEANS A PROCESS USED BY A SALESPERSON OR NON-PRINCIPAL ASSOCIATE BROKER TO APPLY FOR AND RECEIVE A LICENSE ISSUED TO A DIFFERENT EMPLOYING BROKER.

(2) Terms defined in article 1 and section sections 103, 105, and 2501 of the code have the same meanings when used in these rules.

 

R 339.22103 Conduct of public meetings; chairperson defined. BOARD MEETINGS.

Rule 103. BOARD MEETINGS ARE HELD IN ACCORDANCE WITH 1976 P.A. 267, MCL 15.261, ET SEQ., AND ARE OPEN TO THE PUBLIC.

(1)For the purpose of this rule, A chairperson means the person who is authorized to convene and moderate a meeting of the board or any committee of the board or any other person acting temporarily as convenor or moderator.

(2)Each person present shall be provided a reasonable opportunity to address a public meeting on an agenda item or a topic relevant to the public body which is not on the agenda if the person makes a request to the board=s offices or to the department before convening the meeting or to the chairperson before the conclusion of the meeting.

 

 

(3)A group of 5 or more persons may be asked to give advance notice to the chairperson or the department of its intention to attend a meeting so that an effort may be made to provide adequate space. Such advance notice is not required.

(4)The chairperson shall do all of the following:

(a)  Conduct the public participation portion of the meeting in an orderly and decorous fashion. (b) Recognize each person wishing to speak, within the time limits available.

(c)  Allow for public comment on each agenda item, and allocate a specific time on the agenda for general public comments.

(d) Exclude a person from the meeting only for a breach of the peace actually committed at the meeting. (5) The chairperson may do any of the following:

(a)  Limit the number of persons admitted to the meeting room if necessary to comply with public safety laws and regulations.

(b)  Temporarily recess and promptly reconvene the meeting in a larger meeting room if more  space  is necessary.

(c)  Impose reasonable limitations on time allotted for public comments.

(d) Inquire as to the interest or interests, if any, represented by a person addressing the meeting.

(e)  To preserve the rights of all parties, prohibit a member of the public from addressing the meeting on the subject of an administrative law case pending before the board until a disposition of the case has been voted upon by the board.

 

PART 2. LICENSING

 

R 339.22201 Application; eligibility.

Rule 201. (1) A license shall not be issued to an individual who is less than 18 years old.

(2)   A BROKER LICENSE SHALL BE ISSUED TO A LEGAL ENTITY ONLY IF THE INDIVIDUAL WHO HOLDS THE BROKER LICENSE IS IDENTIFIED ON THE APPLICATION AS 1 OF THE FOLLOWING:

(a)  A SOLE PROPRIETOR

(b)  A GENERAL PARTNER IN THE LIMITED PARTNERSHIP.

(c)  AN OFFICER FOR THE CORPORATION.

(d)  A MEMBER OR MANAGER FOR THE ASSOCIATION.

(e)  A HOLDER OF A RESPONSIBLE POSITION OF AUTHORITY IN ANY OTHER LEGAL ENTITY AUTHORIZED BY THE STATE OF MICHIGAN UNDER WHICH THE BUSINESS IS ORGANIZED. (2) A brokers license shall not be issued to a limited partnership unless the general partner is an associate broker.

(3)  Associate broker and salesperson licenses shall only be issued to individuals.

(4)  Associate brokers shall have met the requirements for broker licensure.

(5)  The department may require an applicant to submit a report from an independent source pertaining to his or her previous occupation, criminal record, or any other information material to the applicant’s qualifications for licensure.

 

R 339.22203 Validity of broker education.

Rule 203. (1) An applicant for a broker or associate broker license shall have completed qualifying prelicensure education requirements AS DEFINED IN SECTION 2504 (1) OF THE CODE not more than 36 months before the date of application, unless the applicant has held a license as a salesperson for that intervening period.

 

 

(2)   THE DEPARTMENT SHALL APPROVE ALL COURSES ACCEPTED FOR CREDIT TOWARD THE 90 CLOCK HOURS OF REQUIRED BROKER PRELICENSURE EDUCATION. NOT MORE THAN 1 BROKER COURSE ON THE SAME SUBJECT WILL BE ACCEPTED FOR CREDIT.

(3)    (2) In meeting the BROKER prelicensure education requirements, CREDIT SHALL BE GIVEN FOR EITHER OF THE FOLLOWING:

Possession of a law degree, obtained at any time before the date of application, shall be equated to 60 clock hours of real estate education and 6 hours of instruction in civil rights law and FAIR housing LAW. As required in section 2504 (1) of the code.

(B)     POSSESSION OF A MASTER’S DEGREE IN BUSINESS ADMINISTRATION SHALL BE EQUATED TO 60 HOURS OF REAL ESTATE EDUCATION.

 

R 339.22205 ACCEPTABLE Relevant, related experience for broker applicants.

Rule 205. (1) For purposes of calculating the time during which an applicant for a license as a broker or associate broker has been engaged in the real estate business as required by section 2505 (5) of the code, the following credit shall be granted by the department:

(a)  Real estate salesperson or broker: One year of credit for each 12-month period of licensure in which 6 or more real estate transactions, as defined in section 2501(b) of the code, are verified.

(b)  Builder: One year of credit for each 12-month period in which 6 residential units, or 6 commercial units, or 6 industrial units, or a combination thereof, were built and personally sold or leased by the applicant.

(c)  Investor: Six months of credit for each 5 6 real property transactions personally negotiated for a purchase or sale by the applicant for his or her own account with a maximum of 1 year of credit allowed. However, credit shall not be granted if the applicant has more than 5 6 sales in any 12-month period in violation of the provisions of R 339.22319.

(d)  Land or condominium developers: One year of credit for each 2 developments or subdivisions containing not less FEWER than 10 units or parcels which the applicant has bought, subdivided, and improved for sale as lots or dwellings.

(e)  Attorneys: One year of experience for each year in which 6 real estate transactions were conducted as an attorney.

(f)  Related occupations: One year of credit for each period equivalent to 40 hours per week, 48 weeks per year, in which the applicant has worked in a capacity directly related to the acquisition, financing, or conveyancing CONVEYANCE of real estate, OR positions in which the applicant is deemed to have HAS been directly involved in real estate business include serving as the decision-making authority in any of the following positions:

A loan or trust officer of a FEDERAL OR STATE-REGULATED  DEPOSITORY INSTITUTION bank, savings, and loan institution, or credit union.

(ii)       A loan or trust officer of a mortgage company.

(iii)         A real estate officer of a corporation, which is not a licensed real estate broker.

(iv)       A title insurance company officer engaged in the closing of escrow accounts and real estate closings.

(v)      A staff or real property appraiser.

(2)  Where state law requires a person to be licensed in order to perform an activity, credit shall not be granted for experience obtained without proper licensure.

 

R 339.22207 Examinations.

Rule 207. (1) A written examination is required of all applicants, except as noted in this subrule. Exceptions to the written examination requirements may be granted to ANY OF the following:

 

 

(a)       An applicant with WHO HAS a documented physical handicap DISABILITY which would prevent the applicant from taking a written examination, in which case an alternate form of examination shall be taken FOR WHICH REASONABLE ACCOMMODATIONS MAY BE GRANTED UNDER THE AMERICANS WITH DISABILITIES ACT, P.L.101-336, 42 U.S.C. §§ 12101 ET SEQ.

(b)       An applicant for a salesperson’s license who, within the last 3 years, has held a license as a salesperson, broker, or associate broker.

(c)   An applicant for a broker’s or associate broker’s license, who, within the last 3 years, has held a license as a broker or associate broker.

(C)  (d) An applicant for a broker’s or associate broker’s BROKER OR ASSOCIATE BROKER license who, after surrendering a brokers or associate brokers BROKER OR ASSOCIATE BROKER license, has been continually CONTINUOUSLY licensed as a salesperson since the surrender.

(2) A passing score on an examination, or on a portion of an examination if the examination is given in separate parts, shall be valid for 1 year from the date of examination.

 

R 339.22209 Conversion and transfer of license.

Rule 209. (1) A brokers or associate brokers BROKER OR ASSOCIATE BROKER license shall not be converted into a salespersons SALESPERSON license, and a salespersons SALESPERSON license shall not be converted into a brokers or associate brokers BROKER OR ASSOCIATE BROKER license.

(2)  A salesperson shall be licensed to a broker and shall not be licensed to more than 1 broker at the same time. A salesperson shall not be licensed as a broker or associate broker while he or she holds a salespersons SALESPERSON license.

(3)  To be licensed to another broker as a salesperson, a broker or associate broker shall surrender all of his or her brokers or associate brokers BROKER OR ASSOCIATE BROKER licenses and apply for a salespersons SALESPERSON license. To return to being a broker or associate broker, the salesperson shall surrender his or her salespersons SALESPERSON license and apply for the broker or associate broker license.

(4)  An individual brokers BROKER license is not transferable to a corporation, partnership, association, common law trust, or a combination of such entities, and the brokers BROKER license of a corporation, partnership, association, common law trust, or a combination of such entities is not transferable to an individual. A brokers BROKER license is not transferable. The license of an A PRINCIPAL associate broker who is a principal of the broker is not transferable. The license of a non-principal associate broker or a salesperson is transferable in accordance with the provisions of section 2508 (4) of the code, AND R 339.22101 and R 339.22211.

 

R 339.22211 Transfer of salespersons or non-principal associate brokers license; transfer OF for applicant; accounting for pocket card AND WALL LICENSE.

Rule 211. (1) An applicant for a license as a salesperson or as a non-principal associate broker LICENSE who desires to transfer to a new DIFFERENT EMPLOYING broker before the issuance of the original license shall file a completed new application for licensure. , together with the proper fee.

(2)  A salesperson or non-principal associate broker may satisfactorily account for his or her pocket card by submitting SHALL SUBMIT a signed statement to the department that he or she has obtained the dated signature and license number of his or her new broker on the reverse side of the pocket card. and has had the card dated and signed by the former broker.

(3)  Upon receipt of the completed application for transfer to a new broker, the proper fees, and the old license, the department shall consider the pocket card proper evidence of licensing for 45 days from the latest date written on the back of the card. If the applicant for transfer is notified that the department does not approve the

 

 

application in its current form or denies the transfer, the applicant for transfer shall wait until his or her transfer is approved and he or she receives a new license and pocket card before engaging in real estate activities. THE APPLICATION IS INCOMPLETE, OR THE BROKER TO WHOM HE OR SHE IS TRANSFERRING IS NOT LICENSED, THE POCKET CARD SHALL NO LONGER BE VALID AND THE APPLICANT SHALL WAIT UNTIL THE NEW BROKER RECEIVES THE WALL LICENSE AND POCKET CARD BEFORE ENGAGING IN REGULATED ACTIVITIES.

(4)   THE ABILITY TO CONDUCT REGULATED ACTIVITIES USING THE SIGNED AND DATED POCKET CARD MAY CONTINUE ONLY IF A SALESPERSON TRANSFER OR NEW ASSOCIATE BROKER APPLICATION IS RECEIVED WITHIN 45 DAYS FROM THE DATE ON THE POCKET CARD. If the former broker, or associate broker, is not available or refuses to sign the transfer form and pocket card within a reasonable time, the applicant for transfer may request that the department waive the requirement for the former broker’s signature. by certifying, in writing, that he or she has notified the former broker that he or she is transferring the license to the new broker.

 

R 339.22213 License renewal; late renewal.

Rule 213. (1) An applicant for renewal of a license may continue to operate as previously licensed, using the expired wall license and pocket card as evidence of proper licensing, IF THE APPLICANT HAS MET BOTH OF THE FOLLOWING CONDITIONS BY THE EXPIRATION DATE:

only if the completed application for renewal SUBMITTED A COMPLETE APPLICATION FOR RENEWAL AND THE REQUIRED FEE.

indicating that all renewal requirements, including the completion of continuing education, have been met, COMPLETED THE REQUIRED CONTINUING EDUCATION. is received by the department before the license is due to expire.

(2)      An applicant for renewal whose application is received by the

department after the expiration date shall not operate until he or she THE APPLICANT’S EMPLOYING BROKER receives his or her new license and pocket card.

(3)         (2) A person who failed FAILS to renew a license within 60 days of expiration SHALL APPLY FOR RELICENSURE IN ACCORDANCE WITH but who applies for a license within 3 years of the date of expiration of that license, shall submit a new application for licensure and meet the qualifications for licensure set forth in sectionS 2504(5) AND 411(4) of the code. , including the completion of the continuing education course currently being offered to prepare licensees for renewal.

(4)(3) Completion of continuing education to become relicensed FOR RELICENSURE shall not qualify as completion of the continuing education requirement for the next license renewal.

 

R 339.22215 Application for new license after revocation of previous license.

Rule 215. A person whose license has been revoked shall not apply for a new license for a minimum of AT LEAST 3 years after the service of the final order. To be considered for a license following a revocation, an applicant shall meet all educational and examination requirements in effect at the time of application. Credit for education, examinations, or experience obtained before the revocation shall not be granted.

 

PART 3. PRACTICE AND CONDUCT

 

R 339.22301 Assumed names.

Rule 301. (1) A broker shall not conduct business or advertise under a name other than that in which the license is issued.

 

 

(2) AN INDIVIDUAL broker OR A PARTNERSHIP desiring to operate under an assumed name shall send to the department, with the application for A BROKERs license, a copy of the certificate of assumed name which is certified by the clerk of the county where the certificate is on file. In the case of a A BROKER APPLICANT

WHO IS A LEGAL ENTITY SHALL SUBMIT A CERTIFICATE OF ASSUMED NAME WITH THE

APPLICATION. corporate applicant, the application shall be accompanied by articles of incorporation or a certificate of incorporation certified by the proper state authority.

 

R 339.22305 Listing SERVICE PROVISION AGREEMENT.

Rule 305. (1) A BROKER OR A licensee ACTING ON BEHALF OF THE EMPLOYING BROKER who obtains a listing ENTERS INTO A SERVICE PROVISION AGREEMENT WITH A PARTY OR PARTIES

shall PROVIDE, at the time of signing, by the listing owner give, a true, executed copy of the listing AGREEMENT to the party or parties signing the AGREEMENT. listing. Every listing agreement shall be fully completed by the licensee before it is signed by the listing owner. THE PARTY OR PARTIES SIGN IT.

(2) A listing SERVICE PROVISION agreement shall set forth INCLUDE a definite expiration date and shall not contain a provision requiring the party signing the listing AGREEMENT to notify the broker of the party’s intention to cancel the listing AGREEMENT upon or after the expiration date.

 

R 339.22307 Delivery of offer to purchase to offeror BUYER; tender of written offers to seller; delivery of copies of acceptance to purchaser BUYER and seller; inclusion of terms and conditions in offer to purchase.

Rule 307. (1) A licensee shall deliver to the BUYER an offeror a signed copy of the offer to purchase immediately after it has been signed by THE BUYER the offeror.

(2) A licensee shall promptly tender DELIVER all written offers to purchase to the seller upon receipt. ACCEPTABLE METHODS OF DELIVERY INCLUDE BUT ARE NOT LIMITED TO EITHER OF THE FOLLOWING:

(I)  DELIVERY IN PERSON OR BY MAIL

(II) DELIVERY BY ELECTRONIC COMMUNICATION AS DEFINED IN 2000 PA 305, MCL 450.831 ET SEQ. THE USE OF ELECTRONIC RECORDS OR DIGITAL SIGNATURES FOR ANY REAL ESTATE TRANSACTION REQUIRES THE PRIOR AGREEMENT OF THE PARTIES.

(3)(2) Upon obtaining a proper acceptance of the offer to purchase, signed by the seller, the licensee shall promptly deliver true executed copies of the acceptance to the purchaser and seller.

(4)       A licensee shall make certain that all terms and conditions of the real estate transaction are included in the offer to purchase.

(5)      A licensee shall not be subject to disciplinary action for failing to submit to the seller any additional offers to purchase which are received after the seller has accepted an offer and the sales agreement is fully executed, unless a listing SERVICE PROVISION agreement requires that subsequent offers be presented.

 

R 339.22309 Licensee’s recommendation to purchaser. that abstract of title or title policy be furnished by seller and that purchaser retain attorney.

Rule 309. (1) A licensee who is involved at the time of execution of an offer to purchase in a real estate transaction shall recommend to the purchaser that a complete abstract of title or fee title policy in the amount of the purchase price be furnished to the purchaser by the seller, issued or certified to the

approximate date of the closing of the real estate transaction.

 

 

(2) When a purchaser is notified that the offer to purchase has been accepted by the seller, a licensee shall recommend to the purchaser that an attorney be retained to pass upon the marketability of the title to the property involved and to ascertain whether or not the details in the sale of the real estate or business opportunity have been strictly adhered to.

(2) AN OFFER TO PURCHASE SHALL INCLUDE ALL TERMS AND CONDITIONS UNDER WHICH EARNEST MONEY DEPOSITS SHALL BE

DISBURSED IF AN EXECUTED PURCHASE AGREEMENT TERMINATES.

 

R 339.22310 SUPERVISION OF A SALESPERSON OR A NON-PRINCIPAL ASSOCIATE BROKER BY A BROKER OR PRINCIPAL ASSOCIATE BROKER.

Rule 310. (1) A BROKER OR A PRINCIPAL ASSOCIATE BROKER SHALL SUPERVISE THE WORK OF A NONPRINCIPAL ASSOCIATE BROKER OR SALESPERSON. SUPERVISION, AT A MINIMUM, SHALL INCLUDE ALL OF THE FOLLOWING:

(A)   MAINTAINING DIRECT COMMUNICATION IN PERSON OR BY RADIO, TELEPHONE, OR ELECTRONIC COMMUNICATION ON A CONTINUOUS BASIS.

(B)  REVIEWING THE PRACTICE OF THE SUPERVISED LICENSEE.

(C)  REVIEWING REPORTS.

(D)     PROVIDING ANALYSES AND GUIDANCE OF THE LICENSEE’S PERFORMANCE IN REGULATED ACTIVITIES.

(E)  PROVIDING PREDETERMINED WRITTEN OPERATING POLICIES AND PROCEDURES.

 

R 339.22311 Closing transactions.

Rule 311. (1) IN A NON-COOPERATIVE TRANSACTION, the BROKER or PRINCIPAL associate

broker who is involved at the closing of a real estate or business opportunity transaction, shall furnish, or cause to be furnished, to the buyer and seller, a complete and detailed closing statement signed by the broker or PRINCIPAL associate broker showing each party all receipts and disbursements affecting that party. If the closing is conducted at a bank REGULATED DEPOSITORY INSTITUTION, A TITLE COMPANY, or other closing entity, the broker or PRINCIPAL associate broker is still responsible for the content of the closing statement and shall sign the final closing document.

(2)      A salesperson shall not close a real estate or business opportunity transaction unless under the supervision of a THE broker to whom the salesperson is licensed. The broker or PRINCIPAL associate broker shall assume full responsibility for execution of the closing statements prepared by the salesperson or other persons acting under the broker’s or PRINCIPAL associate broker’s direct supervision.

(3)        Without written approval of the seller and BUYER purchaser, a licensee shall not close a transaction contrary to terms or conditions of an executed agreement.

(4)       In a cooperative transaction, either the broker or the PRINCIPAL associate broker may close the sale and furnish closing statements; however, it is the final responsibility of the listing broker or PRINCIPAL associate broker to close the sale and furnish signed closing statements to BOTH the buyer and the seller.

 

R 339.22313 Trust accounts.

 

 

(2)       A broker shall maintain a non-interest-bearing demand trust account when any earnest money deposits or money belonging to others comes into his or her possession. The account shall be maintained in accordance with the requirements of section 2512 (l) (g) (J) of the code.

(3)        A broker may maintain more than 1 trust account. A broker may maintain the broker’s own funds in an account not to exceed THAT IS NOT MORE THAN $500.00 in each trust account to cover bank service charges and bank minimum balance requirements or to avoid the account being closed when there are no other funds in the account. Such funds shall be accounted for in a bookkeeping system as described in subrule (4) of this rule.

(4)      A broker shall maintain a bookkeeping system in the office. At a minimum, the system shall consist of BOTH OF the following:

A permanent record book or record, called a journal, which shows THE chronological sequence in which funds are received and disbursed, AS FOLLOWS:.

(i)  For funds received, the journal shall include ALL OF THE FOLLOWING INFORMATION:

(A)  The date of receipt and date of deposit.

(B) The name of the party who is giving the money

(C)  The name of the principal.

(D)  and The amount OF THE FUNDS.

(ii)    For FUNDS DISBURSED,  disbursements,  the  journal  shall  include  ALL  OF  THE  FOLLOWING INFORMATION:

(A)  The date OF THE DISBURSEMENT.

(B)  The payee.

(C)  The check number.

(D)  THE purpose of the disbursement.

(E)           and The amount OF THE DISBURSEMENT.

(iii)  A running balance shall be shown after each entry, both for receipt and disbursement. If separate journals are maintained for 1 one trust account, then a combined balance shall be maintained.

A ledger, a record book, or record which shows receipts and disbursements as they affect a single, particular transaction between a buyer and seller. or a landlord and tenant. The ledger shall segregate 1 one transaction from another transaction, AS FOLLOWS:

(A)  The names of both parties to a transaction.

(B)  THE property address or brief legal description.

(C)  and The dates and amounts received. When disbursing funds,

(ii)     FOR  FUNDS  DISBURSED,  THE  LEDGER  SHALL  INCLUDE  ALL  OF  THE  FOLLOWING INFORMATION:

(A)  The date.

(B)  THE payee.

(C)  THE check number.

(D)  THE and amount OF THE DISBURSEMENT. shall be shown.

(5)       (C ) All trust or escrow account records shall be maintained for a period of not less than 5 years from the date of inception of such records.

(6)              (5) Disbursement of an earnest money deposit shall be made AT CONSUMMATION OR TERMINATION OF THE AGREEMENT in accordance with the agreement signed by the parties. In the absence of a pending civil action or an agreement controlling the disbursement of an earnest money deposit,

 

 

disbursement of an earnest money deposit to a seller shall not be grounds for disciplinary action if the payment of such earnest money has been made following the passage of 1 year=s time from the date of an accepted offer to purchase and is based upon a good faith decision that the buyer no longer has a claim to such earnest money deposit. The lack of grounds for disciplinary action does not relieve the broker from civil liability.

HOWEVER, ANY DEPOSIT FOR WHICH BUYER OR SELLER HAS MADE CLAIM, SHALL REMAIN IN THE BROKER’S TRUST ACCOUNT UNTIL A CIVIL ACTION HAS DETERMINED TO WHOM THE DEPOSIT MUST BE PAID. THE BROKER MAY ALSO GIVE THE DEPOSIT TO THE PROPER COURT FOR INTERPLEADING. IF THE DEPOSIT IS IN DISPUTE, BUT THERE IS NO PENDING CIVIL ACTION, THEN AFTER 1 YEAR FROM THE DATE OF AN ACCEPTED OFFER TO PURCHASE, THE BROKER MAY RELEASE THE FUNDS TO EITHER BUYER OR SELLER. THIS ACTION SHALL NOT BE GROUNDS FOR DISCIPLINARY ACTION, BUT DOES NOT RELIEVE THE BROKER FROM CIVIL LIABILITY.

 

R 339.22315 Licensee buying or acquiring interest in property; intent.

Rule 315. (1) When buying or acquiring, directly or indirectly, an interest in a property, a licensee shall disclose the fact of his or her licensure as a real estate broker, associate broker, or salesperson clearly, in writing, to the owner before the owner is asked to sign the purchase agreement. Satisfactory written proof of this disclosure shall be produced by the licensee upon request by the department.

(2)       When a licensee acquires, directly or indirectly, an option to purchase a particular property from an owner who requested the licensee’s services as a real estate licensee, the licensee shall disclose the fact of his or her licensure as a real estate broker, associate broker, or salesperson, in writing, to the owner before the owner is asked to sign the option agreement. Satisfactory written proof of this disclosure shall be produced by the licensee upon request of the department.

(3)       A licensee shall not become a party to a net listing SERVICE PROVISION agreement for an owner or seller OR BUYER as a means of securing a real estate commission.

(4)        A LICENSEE SHALL PROVIDE, UPON REQUEST OF THE DEPARTMENT, WRITTEN PROOF OF ANY REQUIRED DISCLOSURES.

 

R 339.22317 Licensee buying or acquiring interest in property; commission; consent by seller.

Rule 317. A licensee who buys or acquires an interest in property, directly or indirectly, AND WHO IS DUE A COMMISSION, FEE, OR OTHER VALUABLE CONSIDERATION AS A RESULT OF THE SALE SHALL COMPLY WITH ALL OF THE FOLLOWING PROVISIONS BEFORE COMPENSATION IS RECEIVED:

(A)   DISCLOSE, IN WRITING, TO THE SELLER OR OWNER THAT THE LICENSEE WILL BE COMPENSATED FOR THE SALE.

(B)   OBTAIN THE WRITTEN PERMISSION FROM THE SELLER OR OWNER TO RECEIVE THE SPECIFIED CONSIDERATION. shall not charge or accept from the seller, directly or indirectly, a commission, fee, or other valuable consideration as a result of the sale of the property in the transaction without the prior written consent to the specified consideration by the seller.

(C)  PROVIDE WRITTEN PROOF OF COMPLIANCE UPON REQUEST BY THE DEPARTMENT.

 

R 339.22321 Licensee commissions FOR OTHER SERVICES; disclosure AND CONSENT OF BUYER AND SELLER REQUIRED. to, and consent of , purchaser and seller .

Rule 321. (1) A licensee shall not accept, directly or indirectly, a placement REFERRAL fee, commission, or other valuable consideration for placing a loan with a mortgage lender or representative unless the licensee fully

 

 

informs the purchaser and seller of that fact and obtains the prior written consent of the purchaser and seller to IN the transaction.

(2) A LICENSEE WHO IS COMPENSATED AS AN EMPLOYEE OR INDEPENDENT CONTRACTOR BY A FINANCIAL INSTITUTION, TITLE COMPANY, OR ANY OTHER REAL ESTATE SERVICE PROVIDER MAY ACCEPT A COMMISSION, FEE, OR OTHER VALUABLE CONSIDERATION FROM HIS OR HER EMPLOYER ONLY UNDER THE FOLLOWING CONDITIONS:

 

(A)   THE LICENSEE SHALL DISCLOSE, IN WRITING, TO THE SELLER, OWNER, OR BUYER THAT THE LICENSEE WILL BE COMPENSATED FOR THE SERVICE.

(B)  THE LICENSEE SHALL OBTAIN THE WRITTEN PERMISSION FROM THE SELLER, OWNER, OR BUYER TO RECEIVE THE SPECIFIED CONSIDERATION.

(C)   THE LICENSEE SHALL PROVIDE WRITTEN PROOF OF COMPLIANCE WITH THIS RULE UPON REQUEST BY THE DEPARTMENT.

(2) A licensee shall not accept a commission, fee, or other valuable consideration from an abstract, mortgage, home warranty, title insurance, or insurance company or representative in any real estate transaction in which the licensee, directly or indirectly, receives, or is entitled to receive, a real estate

commission as a result of the sale of property in such transaction unless such fee, commission, or consideration is accepted with the prior knowledge and written consent of the party or parties to the transaction with which the licensee has a real estate agency relationship.

 

R 339.22323 Broker’s place of business; location; branch office license; supervision and management of branch office.

Rule 323. (1) A broker shall maintain a place of business in this state which is an actual and established physical location from which the broker can and does conduct the broker’s business and where the broker’s books and records are maintained.

(2)      A license for a branch office is required for any location in addition to the principal business location which, by advertising or signs or otherwise, is held out to the public as a place where clients or customers may do business or consult with a licensee.

(3)        An individual broker, an A PRINCIPAL associate broker, for a corporation, partnership, association, common law trust, or a combination of such entities; or the associate broker who manages a branch office shall be reasonably available to supervise and to manage the business during regular business hours, IN ACCORDANCE WITH SECTION 2505 (3) OF THE CODE.

 

R 339.22325 Contract with licensee abrogating broker’s authority to supervise licensee prohibited. Rule  325.  A  broker  shall  not  contract  with  an  individual  SALESPERSON  OR  NON-PRINCIPAL ASSOCIATE BROKER who is licensed to the broker so as to lose the authority to supervise the licensee.

 

R 339.22329 Advertising generally; advertising of property owned by brokers; advertising by salespersons; advertising of property owned by salespersons.

Rule 329. (1) Except as provided in subrule (2) of this rule, all advertisements to buy, sell, exchange, rent, lease, or mortgage real estate or business opportunities by a broker, THROUGH PRINT, AUDIO, TELEVISION OR ELECTRONIC COMMUNICATION, shall include ALL OF THE FOLLOWING INFORMATION:

(A)  The broker’s name as licensed.

(B)  And the broker’s telephone number.

 

 

(C)  THE BROKER’S street address, INCLUDING CITY AND STATE.

IF ADVERTISING IS DISTRIBUTED OUTSIDE THE STATE OF MICHIGAN, THE NAME OF THE STATES IN WHICH THE BROKER IS LICENSED.

(2)      All advertising shall indicate affirmatively that the party advertising is a LICENSED real estate broker.

(3)       (2) An individual licensed as a broker or associate broker may advertise personally owned property for sale or for lease in his or her own name, and need not use the name of the broker as licensed. However, the advertising shall Indicate affirmatively that the party advertising is a licensed broker or associate broker.

(4)(3) Except as provided in subrule (4) (5) of this rule, advertising by a salesperson or an associate broker shall be under the supervision of, and in the

licensed name of, the individual’s EMPLOYING broker AS PROVIDED IN SUBRULE (1) OF THIS RULE.

(5)   (4) A salesperson may only advertise to sell property under his or her own name if the property is the principal residence of the salesperson. A salesperson may only advertise property for rent or lease under his or her own name if the salesperson is the owner of the property.

(6)     A BROKER SHALL ADVERTISE PROPERTIES ONLY IF BOTH OF THE FOLLOWING CONDITIONS EXIST:

(A)   A SERVICE PROVISION AGREEMENT IS IN EFFECT OR THE BROKER HAS RECEIVED WRITTEN PERMISSION FROM THE OWNER OR SELLER OF THE PROPERTY TO ALLOW OTHER LICENSED BROKERS TO ADVERTISE THE LISTED PROPERTY.

(B)  THE INFORMATION IS UP TO DATE AND ACCURATE.

(7)    THE LICENSEE SHALL PROVIDE WRITTEN PROOF OF COMPLIANCE WITH THIS RULE UPON REQUEST BY THE DEPARTMENT.

 

R 339.22333 Misrepresentation of material facts prohibited; disclosure of material facts.

Rule 333. (1) A licensee shall not, directly or indirectly, misrepresent material facts.

(2) A licensee’s full disclosure to a buyer OR SELLER of material facts within his or her knowledge about the condition of the real estate offered shall not be grounds for disciplinary action, despite a claim by the BUYER OR seller that such THE disclosure constituted disloyalty to the BUYER OR seller in violation of an agency relationship.

 

R 339.22337 Failure of listing broker to cooperate with other brokers.

Rule 337. Failure of the listing broker to cooperate with other brokers is not, in itself, a violation of law or these rules, unless the broker has indicated or implied to the BUYER OR seller that the broker would cooperate with other brokers.

 

R 339.22339 Payments by brokers following termination of licensed relationship.

Rule 339. If an individual earned commissions or other income while licensed to a broker, it shall not be grounds for disciplinary action as a violation of section 2512 (1) OF THE CODE for the broker to pay such earned commissions or income to that individual, regardless of whether that individual is now licensed to another broker or is no longer licensed under the code.

 

PART 4. ENFORCEMENT

 

R 339.22401 Production by licensee of documents or records.

Rule 401. A licensee shall produce PROVIDE for inspection BY AN AUTHORIZED REPRESENTATIVE OF THE DEPARTMENT , at the broker’s place of business, during normal business hours, for an authorized

 

 

representative of the department, any document or record as may be reasonably necessary for investigation or audit in the enforcement of the code and these rules.

 

PART 5. OUT-OF-STATE LAND SALES

 

R 339.22513 Property report; review by prospective purchaser; proof of furnishing report.

Rule 513. (1) A broker shall furnish a property report, as required by R 339.22511, to prospective purchasers and afford a reasonable time for its review before a prospective purchaser signs a document by which the purchaser becomes, or expresses an intention to become, obligated to purchase the property offered.

(2)   IF THE PROPERTY REPORT HAS NOT BEEN PROVIDED TO A PROSPECTIVE PURCHASER BEFORE THE PURCHASER BECOMES OBLIGATED OR EXPRESSES AN INTENTION TO BECOME OBLIGATED TO PURCHASE THE PROPERTY, THEN THE PURCHASER MAY RESCIND THE PURCHASE AGREEMENT OR INTENT TO PURCHASE WITHIN 5 BUSINESS DAYS OF SIGNING THE DOCUMENT.

(3)     A broker shall produce satisfactory proof of having properly furnished a property report TO A PROSPECTIVE PURCHASER upon demand by the department.

 

R 339.22515 Filing requirements.

Rule 515. (1) For purposes of approval under section 2511 of the code, A MICHIGAN the broker shall submit DOCUMENTATION FOR PROPERTY WHICH INCLUDES, BUT IS NOT LIMITED TO ANY OF THE FOLLOWING:

(A)   VACANT LAND WHICH CONTAINS NOT FEWER THAN 25 LOTS, PARCELS, UNITS, OR INTERESTS THAT ARE DIVIDED OR SOLD UNDER A COMMON PROMOTIONAL PLAN, ANY PHASE DEVELOPMENT WHICH ACCUMULATES A TOTAL OF 25 OR MORE LOTS, PARCELS, UNITS, OR INTERESTS THAT ARE DIVIDED OR SOLD UNDER A COMMON PROMOTIONAL PLAN, OR ANY PHASE DEVELOPMENT WHICH ACCUMULATES A TOTAL OF 25 OR MORE LOTS, PARCELS, UNITS, OR INTERESTS. THERE SHALL BE A LEGAL OBLIGATION ON THE PART OF THE SELLER OR HIS OR HER ASSIGNEE OR AGENT TO CONSTRUCT A BUILDING WITHIN 2 YEARS FROM THE DATE OF SALE, LEASE, OPTION, ASSIGNMENT, OR AWARD BY LOTTERY OR AS A PRIZE. A BUILDING IS DEFINED AS ANY OF THE FOLLOWING:

(I)  A COMMERCIAL OR INDUSTRIAL BUILDING.

(II) A SHOPPING CENTER.

(III) A DWELLING UNIT OR APARTMENT.

(B)  TIMESHARE OR MEMBERSHIP INTERESTS.

(C)  CONDOMINIUM UNITS.

(D)  ANY REAL PROPERTY INTEREST THAT IS EXEMPT FROM 1972 P.A. 286, MCL 565.801 ET SEQ. a copy of an order of registration, pursuant to Act No. 286 of the Public Acts of 1972, as amended, being '' 565.804 or 565.805 of the Michigan Compiled Laws, of the property to be sold, unless the property is exempt from such registration by section 4 or 5 of that act.

(2)  For those types of property or sales exempted from registration by section 4 or 5 of Act No. 286 of the Public Acts of 1972, as amended, being '' 565.804 or 565.805 of the Michigan Compiled Laws, VACANT LAND, the broker shall submit a copy of the filing currently effective with the office of interstate land sales registration pursuant to Public Law 90-448, 15 U.S.C. §§ 1701 to 1720. The submission shall include the order of registration, and the property report, AND THE APPROVAL DOCUMENT FROM THE SITUS STATE.

 

 

(3)   Where the broker will engage in sales WHEN A BROKER ENGAGES IN SALES or the promotion of sales of condominiums exempted by section 4 or 5 of 1972 P.A. 286 Act No. 286 of the Public Acts of 1972, as amended, being MCL 565.804 OR 565.805 565.801 et seq. of the Michigan Compiled Laws, the department may accept a submission of the filing and order from the situs state under an act regulating condominiums as evidence that the broker has satisfied the requirements of R 339.22507.

(4)    WHEN THE BROKER WILL ENGAGE IN THE SALE OF TIMESHARE OR MEMBERSHIP INTERESTS, AND ALL SALES WILL BE CONDUCTED IN THE SITUS STATE, THE DEPARTMENT MAY ACCEPT A SUBMISSION OF THE FILING AND ORDER FROM THE SITUS STATE SHOWING APPROVAL HAS BEEN GRANTED. THE SUBMISSION MAY BE EVIDENCE THAT THE BROKER HAS SATISFIED THE REQUIREMENT OF R 339.22507.

FOR OUT-OF-STATE PROPERTY WHICH SHALL BE OFFERED THROUGH A MICHIGAN BROKER IN THE STATE OF MICHIGAN, THE APPLICATION FOR APPROVAL SHALL CONTAIN ALL INFORMATION AS SPECIFIED IN R 339.22501 THROUGH R 339.22513.

FOR PURPOSES OF APPROVAL UNDER SECTION 2511 OF THE CODE, AN APPLICATION AND FEE FOR APPROVAL FROM A MICHIGAN LICENSED BROKER SHALL ACCOMPANY ALL OUT-OF-STATE PROPERTY REGISTRATIONS, INCLUDING THOSE SUBMISSIONS THAT HAVE BEEN APPROVED UNDER 1972 P.A. 286, MCL 565.801 ET SEQ.

 

R 339.22519 Investigation expenses other than on-site inspection expenses; limitation deposit of estimated expenses for on-site inspection.

Rule 519. Expenses incurred by the department, except for on-site inspection expenses, in investigating a broker’s application for approval shall be deemed to be covered by the payment to the department of $500.00. A BROKER SHALL PAY THE DEPARTMENT A FEE OF $500.00 TO COVER INVESTIGATION EXPENSES WHEN SUBMITTING THE APPLICATION FOR DEPARTMENT APPROVAL. THE FEE DOES NOT INCLUDE THE COST OF AN ON-SITE INSPECTION.

 

R 339.22523 Approval to engage in sales of promotional nature; form; duration.

Rule 523. (1) The approval of brokers to engage in sales of a promotional nature pursuant to section 2511 of the code shall be in the form of an order and shall be effective for 1 year from the date of issuance.

(2) A BROKER SHALL ANNUALLY RENEW THE ORDER OF APPROVAL TO ENGAGE IN SALES OF A PROMOTIONAL NATURE, PURSUANT TO SECTION 2511 OF THE CODE, AND SHALL BEAR THE COSTS INCURRED BY THE DEPARTMENT IN INVESTIGATING THE APPLICATION.

 

R 339.22525 Rescinded.

R 339.22525 Renewal of order of approval to engage in sales of promotional nature.

Rule 525. Annually, a broker shall renew the order of approval to engage in sales of a promotional nature pursuant to section 2511 of the code on forms provided by the department and shall bear the costs incurred by the department in investigating the application.

 

R 339.22527 Broker holding order of approval to engage in sales of promotional nature; notice of changes.

Rule 527. A broker who holds an order of approval to engage in sales of a promotional nature pursuant to section 2511 of the code shall notify the department immediately of any material change in the information required by R 339.22505 to R 339.22511 R 339.22513.

 

 

PART 6. REAL ESTATE EDUCATION SUBPART 1. GENERAL PROVISIONS

 

R 339.22601 Course approval; certificate.

Rule 601. (1) A REAL ESTATE SCHOOL, SPONSOR, OR EDUCATIONAL INSTITUTION SHALL APPLY FOR AND OBTAIN APPROVAL FOR REAL ESTATE EDUCATION COURSES BEFORE

THE COURSES ARE OFFERED FOR ENROLLMENT. Real estate courses shall receive approval from the department before they are offered to the public for enrollment.

(2)   THE DEPARTMENT SHALL ISSUE A CERTIFICATE OF COURSE APPROVAL OR A NOTICE OF DENIAL TO THE SCHOOL, SPONSOR, OR EDUCATIONAL INSTITUTION WITHIN 60 DAYS AFTER THE APPLICATION IS RECEIVED. Within 60 days after receipt and favorable review of completed documents, the department shall issue a certificate of course approval to the applying real estate school, sponsor, or institution.

 

R 339.22602 ADVERTISING FOR APPROVED REAL ESTATE COURSES.

RULE 602. ALL ADVERTISING FOR APPROVED REAL ESTATE COURSES THAT ARE HELD OUT TO THE PUBLIC AS FULFILLING THE REQUIREMENTS OF SECTION 2504 OF THE CODE SHALL BE IN THE NAME OF THE APPROVED SCHOOL, SPONSOR, OR INSTITUTION.

 

R 339.22604 CERTIFICATE OF COMPLETION; CONTENT.

RULE 604. (1) A REAL ESTATE SCHOOL, SPONSOR, OR INSTITUTION SHALL ISSUE A CERTIFICATE OF COMPLETION TO A STUDENT WHO SUCCESSFULLY COMPLETES AN APPROVED REAL ESTATE COURSE. THE CERTIFICATE SHALL INCLUDE ALL OF THE FOLLOWING INFORMATION:

(A)  THE DATE OF COURSE COMPLETION.

(B)      THE NAME OF THE COURSE ATTENDED. IF THE COURSE IS APPROVED FOR CONTINUING EDUCATION, THE TOPIC APPROVAL NUMBERS, IF ASSIGNED.

(C)  THE NAME AND APPROVAL NUMBER OF THE SCHOOL, SPONSOR, OR INSTITUTION.

(D)  THE NAME OF THE STUDENT.

(E)  THE NUMBER OF CLASSROOM HOURS COMPLETED BY THE STUDENT.

(F)  THE SIGNATURE OF THE COURSE COORDINATOR.

(2) EACH STUDENT OR LICENSEE SHALL PROVIDE A STATE-ISSUED PHOTO IDENTIFICATION TO THE SCHOOL, SPONSOR, OR INSTITUTION BEFORE RECEIVING THE CERTIFICATE OF COMPLETION.

 

R 339.22605 STUDENT RECORDS; CONTENT; INSPECTION.

RULE 605. (1) EACH APPROVED REAL ESTATE SCHOOL OR INSTITUTION SHALL ESTABLISH AND PERMANENTLY MAINTAIN A RECORD FOR EACH STUDENT. EACH APPROVED REAL ESTATE EDUCATION SPONSOR SHALL ESTABLISH AND MAINTAIN A RECORD FOR EACH STUDENT FOR NOT LESS THAN 3 YEARS FROM THE INCEPTION OF EACH RECORD.

(2)  STUDENT RECORDS SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION:

(A)  THE STUDENT’S NAME AND ADDRESS.

(B)  THE NUMBER OF CLASSROOM HOURS ATTENDED.

(C)      THE STUDENT’S GRADE, IF AN EXAMINATION IS REQUIRED TO DETERMINE SUCCESSFUL COMPLETION.

 

 

(D)  THE DATE OF COURSE COMPLETION.

(E)  THE DATE THE CERTIFICATE WAS ISSUED.

(3)    ALL RECORDS SHALL BE AVAILABLE FOR INSPECTION DURING NORMAL BUSINESS HOURS BY AN AUTHORIZED REPRESENTATIVE OF THE DEPARTMENT, IF THE INSPECTION DOES NOT VIOLATE A LAW.

 

R 339.22606 STUDENT CONTRACTS; RETURN OF FEES.

RULE 606. (1) IF THE REAL ESTATE SCHOOL, SPONSOR, OR INSTITUTION USES A STUDENT CONTRACT, THE DOCUMENT SHALL BE PROVIDED TO THE DEPARTMENT WITH THE APPLICATION FOR APPROVAL.

(2) THE REAL ESTATE SCHOOL, SPONSOR, OR INSTITUTION SHALL STATE, ON THE APPLICATION FOR APPROVAL, THE POLICY REGARDING THE RETURN OF FEES IF A STUDENT FAILS TO APPEAR, IS DISMISSED, OR WITHDRAWS VOLUNTARILY FROM A REAL ESTATE PRELICENSURE OR CONTINUING EDUCATION COURSE.

 

R 339.22609 Instructors.

Rule  609.  (1)  EACH  INSTRUCTOR  SHALL  OBTAIN  APPROVAL  FROM  THE  DEPARTMENT

BEFORE TEACHING ANY REAL ESTATE COURSE. To receive approval from the department, every course of study shall have an instructor who is acceptable to the department.

(2)      Instructors shall be responsible for all of the following:

(a)      Compliance with all laws and rules relating to real estate education.

(b)      Providing students with current and accurate information.

(c)      Maintaining an ENVIRONMENT atmosphere conducive to learning. in the classroom.

(d)     Assuring and certifying attendance of students enrolled in courses.

(e)      Providing assistance to students and responding to questions relating to course materials.

(f)     Attending such workshops or instructional programs as are reasonably required by the department.

(3)        The real estate school, institution, or sponsor shall submit on forms provided by TO the department the qualifications of each instructor to be used in an approved course not less FEWER than 60 days before the instructor is scheduled to begin instruction.

 

R 339.22613 Student ATTENDANCE AND makeup policy.

Rule 613. (1) A STUDENT SHALL ATTEND A COURSE IN ITS ENTIRETY TO OBTAIN CREDIT FOR THE COURSE.

(2)      A real estate school, sponsor, or institution shall have a makeup policy for students who are absent from, or late arriving at, regularly scheduled class sessions.

 

SUBPART 2. PRELICENSURE COURSES

 

R 339.22631 Application for approval to offer pre-licensure courses; forms; required information.

Rule 631. (1) A SCHOOL, SPONSOR, OR INSTITUTION SHALL SUBMIT AN APPLICATION TO

THE DEPARTMENT FOR APPROVAL OF PRELICENSURE COURSES. An application for approval of prelicensure real estate courses shall be on such forms as the department may prescribe. Such forms THE APPLICATION shall require INCLUDE ALL OF THE FOLLOWING INFORMATION:

(a)      The names and qualifications of instructors and the prelicensure courses they are teaching.

 

 

(b)         An DETAILED CONTENT outline of the  FOR EACH prelicensure courses to be taught, which shall include the number of hours allocated to EACH TOPIC. subject matter topics.

(c)        The standards a student must meet to successfully complete the course, including a statement as to the grading system, attendance, and class makeup policy for prelicensure courses.

(d)     A copy of the advertising materials used to promote the prelicensure courses.

(e)      The TENTATIVE schedule and geographic location of prelicensure course meetings or classes.

(f)      A copy of any contract for prelicensure courses that the school has with its students.

(g)      The methodology for verifying and monitoring attendance.

(2)        A change in the information required to be provided on the application forms shall be reported to the department within 30 days of the change. The department shall accept or reject a change within 60 days of notification of the change.

(3)        A real estate school or institution shall also demonstrate that it is an entity which may offer prelicensure courses in accordance with section 2504 (8) of the code.

 

R 339.22633 Rescinded.

R 339.22633 Student contract; return of fees.

Rule 633. The real estate school, or institution student contract shall state the school’s or institution’s policy regarding the return of fees if a student is dismissed or withdraws voluntarily from the course.

 

R 339.22635 Rescinded.

R 339.22635 Student records; content; inspection.

Rule 635. (1) Each approved real estate school or institution shall establish and permanently maintain a record for each student. The record shall include all of the following information:

(a)The student’s name and address.

(b)           The number of clock hours attended. (c) The student’s grade.

(d) The date of certificate issuance.

(2)  Records shall be available for inspection during normal business hours by an authorized representative of the department , when such inspection does not violate a law.

 

R 339.22637 Rescinded.

R 339.22637 Certificate of completion; content.

Rule 637. A real estate school, or institution shall issue a certificate of completion to a student who successfully completes a prelicensure course. The certificate shall include all of the following information:

(a)The date of course completion.

(b)The name of the course attended.      (c) The name of the school, or institution. (d) The name of the student.

(e) The number of clock hours completed by the student. (f) The signature of the course coordinator.

 

SUBPART 3. CONTINUING EDUCATION COURSES

 

R 339.22651 Criteria for approval of continuing education courses.

 

 

Rule 651. Courses related to the activities of a real estate broker, associate broker, or salesperson that are offered to licensees shall meet all of the following criteria for department approval:

(a)  A clear statement of the rationale, purpose, and goals shall be prepared for each course before beginning instruction.

(b)  Qualified APPROVED instructors shall conduct each course.

(c)   A syllabus shall be submitted to the department, which shall include ALL OF the following as they are pertinent to the activities of licensees generally and, if desired, with additional reference to a specialized area of expertise:

(i)      Changes in economic conditions.

(ii)       Changes in laws, court opinions, and rules.

(iii)        Interpretations relating to and affecting real property. Annually, the board and the department shall provide a list of known changes and interpretations for the purpose of the development of the syllabus.

(d) A course administration description shall be provided, which shall include a system for verifying satisfactory completion of the course by each licensee, for providing to the department a verified list of those licensees awarded credit, and for providing participating licensees with certificates which indicate satisfactory completion of the course and which specify the department’s assigned course number.

(e)   The sponsor shall have provided or arranged for appropriate educational facilities, supporting reference materials or a library, and all necessary instructional aids and equipment consistent with the educational content, format, and objectives of each learning experience.

(F)    FOR DISTANCE LEARNING COURSES, THE APPLICATION SHALL ALSO INCLUDE A DETAILED CONTENT OUTLINE, STUDENT HANDOUTS, IN HARD COPY OR ON DISC OR CD- ROM.

(G)   (f) The sponsor shall SUBMIT TO  notify the department,  at the earliest practical time, of any  course changes which affect the accuracy of the application  for  approval  or  accompanying   documentation, INCLUDING THE DETAILED CONTENT OUTLINE.

 

R 339.22654 DISTANCE EDUCATION; CRITERIA FOR APPROVAL.

R 654. (1) REAL ESTATE EDUCATION COURSES REPRESENTED AS FULFILLING THE REQUIREMENTS OF SECTION 2504 OF THE CODE AND DELIVERED THROUGH DISTANCE LEARNING SHALL BE APPROVED BY THE DEPARTMENT FOR BOTH DELIVERY SYSTEM AND CONTENT BEFORE BEING OFFERED TO THE PUBLIC.

(2)    DELIVERY SYSTEMS WHICH HAVE MET THE DISTANCE EDUCATION CRITERIA FOR CURRENT CERTIFICATION BY THE ASSOCIATION OF REAL ESTATE LICENSE LAW OFFICIALS (ARELLO) SHALL BE ACCEPTABLE TO THE DEPARTMENT, AS FOLLOWS:

(A)      PROOF OF ARELLO CERTIFICATION, INCLUDING THE SUMMARY SHEET AND CERTIFICATE, SHALL BE PROVIDED WITH THE APPLICATION FOR COURSE APPROVAL.

(B)     IF A COMBINATION OF PRIMARY COURSE DEVELOPER OR SECONDARY COURSE PROVIDERS IS INVOLVED, ALL ENTITIES SHALL HAVE ACHIEVED ARELLO CERTIFICATION.

(C)  UPON NOTIFICATION FROM ARELLO THAT CERTIFICATION HAS BEEN WITHDRAWN OR NOT RENEWED, THE APPROVED SPONSOR SHALL FORWARD THE NOTIFICATION TO THE DEPARTMENT. APPROVAL TO OFFER DISTANCE LEARNING COURSES SHALL BE SUSPENDED UNTIL ARELLO CERTIFICATION IS REINSTATED OR THE SPONSOR HAS APPLIED FOR AND RECEIVED APPROVAL FROM THE DEPARTMENT ACCORDING TO SUBRULE (3) OF THIS RULE.

 

 

(3)  DELIVERY SYSTEMS WHICH HAVE NOT BEEN CERTIFIED BY ARELLO SHALL APPLY TO THE DEPARTMENT FOR APPROVAL. THE APPLICATION SHALL INCLUDE DOCUMENTATION FOR ALL OF THE FOLLOWING COMPONENTS BEFORE APPROVAL WILL BE GRANTED BY THE DEPARTMENT:

(A)  A DIAGNOSTIC ASSESSMENT COMPONENT THAT PROVIDES ADEQUATE REMEDIATION FOR SPECIFIC DEFICIENCIES IDENTIFIED DURING THE STUDENT’S INVOLVEMENT.

(B)   MEASUREMENTS THAT ENSURE THAT EACH COURSE SHALL TEACH TO MASTERY AT REGULAR INTERVALS. TEACHING TO MASTERY MEANS THAT EACH COURSE SHALL, AT A MINIMUM, COMPLY WITH ALL OF THE FOLLOWING PROVISIONS:

(i)  DIVIDE THE MATERIAL INTO MAJOR UNITS OF CONTENT.

(ii)    DIVIDE EACH OF THE MAJOR UNITS OF CONTENT INTO MODULES OF INSTRUCTION FOR DELIVERY.

(iii)  SPECIFY THE LEARNING OBJECTIVES FOR EACH MODULE OF INSTRUCTION.

(C)    INCLUDE ASSESSMENT COMPONENTS THAT MEASURE WHETHER THE UNITS HAVE BEEN MASTERED BEFORE CONTINUING TO THE NEXT LEVEL.

(D)    INCLUDE A SYSTEM TO MONITOR STUDENT ENROLLMENT, PARTICIPATION, AND COURSE COMPLETION.

(E)  INCLUDE A METHOD WHICH WILL VERIFY THAT THE STATED CLASSROOM HOURS ARE CONSISTENT WITH THE ACTUAL HOURS REQUIRED TO COMPLETE THE COURSE. ACTUAL HOURS SHALL BE BASED ON THE MINIMUM NUMBER OF HOURS REQUIRED TO COMPLETE THE COURSE AND SHALL NOT BE BASED ON AVERAGE HOURS FOR COMPLETION. THE DEPARTMENT SHALL DETERMINE FINAL APPROVAL OF CLASSROOM HOURS.

(F)     INCLUDE A SYSTEM WHICH REQUIRES STUDENTS TO PROCEED FROM COURSE BEGINNING TO END BY ENSURING THAT THE SEQUENCE OF MODULES CANNOT BE ALTERED.

(G)  INCLUDE A METHOD FOR DETERMINING SUCCESSFUL COMPLETION OF THE COURSE. IF AN EXAMINATION IS REQUIRED, STUDENTS SHALL PASS THE EXAMINATION BEFORE BEING PROVIDED A CERTIFICATE OF COMPLETION. THE EXAMINATION SHALL BE A PROCTORED FINAL EXAMINATION ADMINISTERED ON-SITE AT AN APPROVED SPONSOR’S FACILITY. IF AN EXAMINATION IS NOT REQUIRED, THE COURSE SPONSOR SHALL PROVIDE, TO THE STUDENT, A SIGNED CERTIFICATION ATTESTING TO THE IDENTITY OF THE PERSON COMPLETING THE COURSE.

(H)  A PERFORMANCE HISTORY OF THE TECHNOLOGY USED IN THE COURSE. THE HISTORY SHALL CONTAIN REFERENCES FROM PERSONS WHO CAN ATTEST TO THE PERFORMANCE OF THE TECHNOLOGY, INCLUDING ANY HARDWARE AND SOFTWARE USED IN THE APPLICABLE COURSE.

(I ) A DESCRIPTION OF THE HARDWARE AND SOFTWARE USED BY THE PROVIDER AND WHICH THE STUDENT NEEDS TO COMPLETE THE COURSE. THE DESRIPTION SHALL INCLUDE AN ASSESSMENT OF THE AVAILABILITY AND ADEQUACY OF THE EQUIPMENT RELATIVE TO THE INSTRUCTIONAL CLAIMS OF THE COURSE.

(J)      A PLAN THAT OUTLINES HOW THE SPONSOR WILL HANDLE TECHNOLOGICAL FAILURES OF EITHER THE SOFTWARE OR HARDWARE.

(K)  A PLAN THAT DETAILS THE TECHNICAL SUPPORT PROVIDED BY THE SPONSOR ON AN ONGOING BASIS.

 

 

(L)    IF A COMBINATION OF PRIMARY COURSE DEVELOPERS OR SECONDARY COURSE PROVIDERS IS INVOLVED, THEN ALL ENTITIES SHALL MEET THE REQUIREMENTS STATED IN THIS RULE.

(4)  THE DEPARTMENT SHALL APPROVE COURSE CONTENT TO ENSURE THAT IT MEETS THE REQUIREMENTS OF SECTION 2504 (4) OF THE CODE.

(5)  ALL DISTANCE EDUCATION COURSES SHALL BE OFFERED UNDER THE SUPERVISION OF A MICHIGAN-APPROVED INSTRUCTOR WHO SHALL DO BOTH OF THE FOLLOWING::

BE AVAILABLE TO ANSWER STUDENTS QUESTIONS OR PROVIDE ASSISTANCE AS NECESSARY.

(B) PROVIDE REASONABLE OVERSIGHT OF STUDENT WORK IN ORDER TO ENSURE THAT THE STUDENT WHO COMPLETES THE WORK IS THE STUDENT WHO IS ENROLLED IN THE COURSE.

(6)  ALL DISTANCE EDUCATION COURSES SHALL BE SUCCESSFULLY COMPLETED WITHIN 1 YEAR FROM THE DATE OF INITIAL ENROLLMENT.

 

R 339.22655 Time periods; course credit.

Rule 655. To receive approval, a course shall be designed to be taught for not less than 2 clock CLASSROOM hours, not including time spent on breaks, meals, COMPUTER TUTORIALS, or other unrelated activities.

 

R 339.22659 Attendance.

Rule 659. A licensee shall attend a course in its entirety to obtain credit and shall complete a total of 6 clock CLASSROOM hours for each annual renewal period. Credit for completion of a course shall only be granted once in each annual renewal period.

 

R 339.22661 Rescinded.

R 339.22661 Student records; content ; inspection.

Rule 661. (1) A real estate school or institution shall establish and permanently maintain a record for each student. The record shall include all of the following information:

(a)The student’s name and address.

(b)           The number of clock hours attended. (c) The date of course completion.

(2) Records shall be available for inspection during normal business hours by an authorized representative of the department, when such inspection does not violate a law.

 

R 339.22663 Certification of completion of course.

Rule 663. Licensees and course sponsors shall certify the completion of an approved course in a method or on forms prescribed by the department. Within 15 calendar days after a course is taught, course sponsors shall submit THE NAMES OF STUDENTS WHO HAVE SUCCESSFULLY COMPLETED THE COURSE to

the department. lists of licensees who have completed the course.