8 PROPOSED ADMINISTRATIVE RULES

 

SOAHR 2006-020

 

DEPARTMENT OF LABOR AND ECONOMIC GROWTH DIRECTOR'S OFFICE

REAL ESTATE BROKERS AND SALESPERSONS - GENERAL RULES

 

Filed with the Secretary of State on

 

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, or 45a(6) of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

 

(By authority conferred on the director of the department of labor and economic growth by sections 205, 308, and 2504 of 1980 PA 299, MCL 339.205, 339.308 and 339.2504 and Executive Reorganization

Orders No. 1996-2, MCL 445.2001, and 2003-1, MCL 445.2011)

 

R 339.22203, R 339.22213, R 339.22601, R 339.22602, R 339.22603, R 339.22604, R 339.22605, R

339.22607, R 339.22609, R 339.22613, R 339.22615, R 339.22617, R 339.22631, R 339.22645, R

339.22651, R 339.22653, R 339.22655, R 339.22659 and R 339.22665 of the Administrative Code are

amended, R 339.22606 is added, and R 339.22639, R 339.22641, R 339.22653, R 339.22654, R

339.22655, R 339.22663, and R 339.22664 are rescinded as follows:

 

PART 2. LICENSING

 

Rule 203. (1) An applicant for a broker or associate broker license shall have

completed 90 clock hours of qualifying prelicensure education of which 9 clock hours shall be on civil rights law and fair housing law, as defined in section 2504 (1) of the code. The broker prelicensure education shall be completed 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)   Acceptable courses for prelicensure education shall meet criteria established by the department, but may be reviewed and preapproved by a statewide real estate trade association for subject matter relevant to the practice of real estate. Not more than 1 broker course on the same subject will be accepted for credit.

(3)   In meeting the broker prelicensure education requirements, credit shall be given for either of the following:

(a)    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 which includes 6 hours of instruction in civil rights law and fair housing law.

(b)    Possession of a master's degree in business administration from an accredited institution of higher learning shall be equated to 60 clock hours of real estate education.

(4)   An applicant for a salesperson license shall have completed 40 clock hours of qualifying prelicensure education of which 4 clock hours shall be on civil rights law and fair housing law, as

 

 

defined in section 2504(2) of the code. The salesperson prelicensure education shall be completed not more than 36 months before the date of application.

 

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:

(a)    Submitted a complete application for renewal and the required fee.

(b)    Completed the required continuing education.

(2)   An applicant for renewal whose application is received by the department after the expiration date shall not operate until the applicant's employing broker receives his or her new license and pocket card.

(3)   A person who fails to renew a license within 60 days of expiration, shall apply for relicensure in accordance with sections 2504 (5) and 411 (4) of the code.

(4)     Completion  of  continuing  education  for  relicensure  shall  not  qualify  as  completion  of  the continuing education requirement for the next license renewal.

(5) Unless a relicensure applicant has completed 6 clock hours of approved continuing education for every year since a license has lapsed, the applicant shall successfully complete any education or examination used to qualify for relicensure within 12 months before the applicant applies for relicensure.

 

PART 6. REAL ESTATE EDUCATION SUBPART 1. GENERAL PROVISIONS

R 339.22601 Course approval; certificate.

Rule 601. (1) A real estate school, or sponsor, or educational institution shall apply for and obtain approval as determined by the department for real estate education courses before the courses are offered to the public.

(2)   The department shall issue a certificate or letter of course approval or a notice of denial to the school, or sponsor, or educational institution within 60 days after the application is received. Denials shall be based on substantive deficiencies and specify the reasons for the denial. If the department does  not respond within 60 days, the course shall be deemed approved.

(3)  Courses shall be approved as determined by the department. The department will accept the courses for approval which have met that meet the criteria established by the department for course content and number of clock hours and which are taught by instructors who have met meet the criteria in R 339.22101.

 

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, or sponsor., or  educational institution.

R 339.22603 Solicitations.

Rule 603. (1) Organizational membership, employment, or business-related solicitations, or any other noneducational presentations are prohibited at during continuing education courses and prelicensure courses and shall not be counted as part of the clock hours of the course.

(2) Students or licensees shall not receive credit for solicitations or noneducational presentations offered in conjunction with an approved course.

 

 

R 339.22604 Student records; content; inspection.

Rule 604. (1) Each approved real estate school or institution and each real estate continuing 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 clock hours attended.

(c)    The student's grade, if an examination is required to determine successful completion of the course.

(d)    The date of course completion.

(e)    The last 4 digits of the student’s social security number.

(f)    The student’s date of birth.

(g)    The real estate license identification number, if applicable.

(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.

(4)   A real estate school or sponsor shall maintain records in the following manner:

(a)   Records of schools shall be maintained permanently.

(b)   Records of sponsors shall be maintained for a minimum of 6 years from inception date of the record.

(5)   A real estate school or sponsor 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)   Identification of the course attended, including the following:

(i)    The name of the course, as approved by the department.

(ii)    For continuing education sponsors, the course approval numbers, as assigned by the department.

(c)   The name and approval number of the school or sponsor.

(d)   The name of the student. Continuing education sponsors shall also include the licensee’s real estate license identification number.

(e)   The number of clock hours completed by the student.

(f)  The signature of the course coordinator.

(6)   Each student or licensee completing a prelicensure or continuing education course shall present a state-issued photo identification or acceptable alternative form of photo identification to the school or sponsor before receiving the certificate of completion. Both of the following apply:

(a)    For courses conducted in a traditional classroom setting, students or licensees shall present a state-issued photo identification or other acceptable alternative form of identification that verifies, to the satisfaction of the school or sponsor, the identification of the student or licensee.

(b)    For courses conducted through distance education, the school or sponsor shall ensure that the student or licensee whose attendance is reported to the department is the same person who completed the distance education course. The school or sponsor shall take appropriate measures to ensure accurate verification of the identity of each student or licensee before reporting course completion to the department.

(7)   At least 30 days before courses are held, schools and sponsors shall submit to the department a schedule and geographic location for each course.

(8)   Within 5 business days of the conclusion of the last course, schools and sponsors shall submit, in a format required by the department, the names of students who have successfully completed an approved course.

 

 

 

R 339.22605 Submissions with application for approval; student contracts; return of fees. Rule 605. A submission for course approval shall contain all of the following:

(1)  An application as approved by the department.

  (1) If the real estate school, sponsor, or institution uses a (2) A student contract, if used by the school.

the document shall be provided with the application for approval.

  (2) The school, sponsor, or institution shall (3) A copy of the school's policy forstate 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.

 

R339.22606 Distance learning

Rule 606. (1) Real estate education courses represented as fulfilling the requirements of section 2504 of the code and delivered through distance learning shall be approved as determined by the department before being offered to the public.

(2)   A distance-learning course shall contain all of the following:

(a)  All requirements listed in R 339.22653(1) for approval of a continuing education course, or R 339.22631(1) for approval of a prelicensure course.

(b)   The individual modules of instruction offered on a computer or other interactive program.

(c)  A list of at least 1 learning objective for each module of instruction. The learning objective shall ensure that if all the objectives are met the entire content of the course is understood.

(d)   A structured learning method to enable the student to attain each learning objective.

(e)   A method of assessment of the student's performance during each module of instruction.

(f) A remediation for any student who is deficient in the assessment to repeat the module until the student understands the course content material.

(3)  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 as a primary or secondary provider, including the summary sheet and certificate, shall be provided with the application for course approval.

(b)    Upon withdrawal or expiration of ARELLO certification, the 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 (4) of this rule.

(4)  Equivalent delivery systems may be used if they are approved as determined by the department.

(5)   The real estate school or sponsor shall describe in detail on its application how it will remedy hardware and software failures.

 

R 339.22607 Program coordinator.

 

R 339.22609 Instructors.

Rule 609. (1) Each instructor shall be approved as determined by the department before teaching any real estate course. Instructors who meet the criteria in R 339.22101 (m) (i), (ii), or (iii) shall be deemed approved by 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 conducive to learning.

(d)    Assuring and certifying accurate 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 required by the department.

(3)   The real estate school, institution, or sponsor shall submit to the department the qualifications of each instructor to be used in an approved course not 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 100% of a course in order to obtain credit for the course.

(2) Credit for a distance learning course requires completion of the entire course.

Completion of the entire course means the number of course hours attended equals the number of hours for which the course is approved.

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

 

R 339.22615 Misleading information.

 

R 339.22617 Denial, suspension, or rescission of approval to offer courses; violation of code or rules. Rule 617. (1) A person, real estate school, sponsor real estate school, or institution or instructor may be subject to the penalties of section 602 of the code, including disciplinary action against a course approval, for any of the following reasons:

(a)    Failure to comply with the provisions of the code or these rules.

(b)    Revealing or attempting to discover, or soliciting, encouraging, or inducing a person to reveal, the questions on a real estate license examination administered by or on behalf of the department.

(c)    Making a substantial misrepresentation regarding a real estate school, sponsor, institution, or course of study.

(d)    Making a false promise of a character likely to influence, persuade, or induce regarding a sponsor, real estate school, institution, or course of study.

(e)      Pursuing a continued and flagrant course of misrepresentation or the making of false promises through agents, salespersons, advertising, or otherwise.

(2) The department shall have the right to review a course at any time and to summarily suspend course approval, in accordance with section 505 of the code, where the course does not conform to the requirements of the code or these rules or where there is a high rate of failure on a licensing examination indicating lack of competent instruction.

(3)   A proprietary real estate school licensed under 1943 PA 148 shall continue to comply with the provisions of the act.

 

 

SUBPART 2. PRELICENSURE COURSES

 

R 339.22631 Application for approval to offer prelicensure courses; forms; required information. Rule 631. (1) A real estate school or sponsor , sponsor, or institution shall submit an application for approval, as determined by the department, for prelicensure courses. The application shall include, but not be limited to, all of the following information:

(a)   The school name, business address, telephone number, facsimile number, website address, and e-mail address, if applicable.

(b)   The course title.

  (a) (c) The names and evidence of approval, as determined by the department, of the qualifications of instructors. and the prelicensure courses they are teaching.

  (b) (d) A detailed summary of topics completed content outline for each prelicensure course to be taught, which shall include including the number of hours allocated to each topic.

  (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 and successful course completion.

(e)    A sample certificate of completion that meets the requirements of R 339.22604(5).

(f)    The name of the coordinator.

(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 that may offer prelicensure courses in accordance with section 2504 (8) of the code.

R 339.22639 Certification of completion of course. Rescinded.

  Rule 639. Real estate schools and institutions shall certify the completion of an approved prelicensure course in a method or on forms prescribed by the department. Within 5 business days after final class meetings, real estate schools and institutions shall submit to the department lists of students who have completed courses.

 

 

R 339.22641 Course credit; clock hour limitation. Rescinded.

  Rule 641. Credit shall not be given toward the prelicensure course requirements for more than 8 clock  hours of instruction in 1 calendar day.

R 339.22645 Approval of prelicensure courses; expiration date.

Rule 645. An approval (1) Approval of prelicensure courses which is issued by the department to a real estate school or institution shall expire annually on June 30 of the year in which all real estate licenses expire.

(2)    A proprietary real estate school licensed under 1943 PA 148 shall comply with the act to maintain approval of the real estate school under this rule.

SUBPART 3. CONTINUING EDUCATION COURSES

 

R 339.22651 Criteria for approval of Application for approval to offer continuing education courses; forms; required information.

 

 

Rule 651. (1) 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 A real estate school or sponsor shall submit an application for approval, as determined by the department, for continuing education courses offered to real estate broker, associate broker or salesperson licensees.and be approved as determined by the department: The application shall include all of the following information:

(a)   The sponsor name, business address, telephone number, facsimile number, website address, and e-mail address, if applicable.

(b)   The course title.

(c)   The names and qualifications of instructors.

(d)   An outline of the courses to be taught, including the number of hours allocated to each topic. Courses shall be composed of at least 1 of the following categories:

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

  (b) Approved instructors shall conduct each course.

  (c) A syllabus shall be submitted to the 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.

(iv)    Any topics relevant to the management, operation, or practice of real estate.

  (d) A course administration description shall be provided, which shall include a system for verifying satisfactory completion of 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)     A sample certificate of completion that meets the requirements of R 339.22604(5).

  (e) (2) The sponsor shall submit to the department all course changes which affect the accuracy of the application for approval or accompanying documentation, including the detailed content outline. any changes to an existing approved course. The department shall accept or reject a change within 60 days of notification of the change.

 

R 339.22653 Application for course approval. Rescinded.

  Rule 653. (1) Annually, a proposed sponsor shall complete and submit, on forms provided by the department, an application form and documentation necessary to demonstrate that the courses meet the criteria established by these rules. The application shall be made not less than 60 days before the. first  date of instruction. An application shall include all of the following information:

(a)The course title.

(b) The date, time, and location of the tentative course offerings.

(c)(B)The name, address, and telephone number of the sponsoring entity.  (d) (C)The name, address, and telephone number of the course coordinator(S)

(e) (D)The name, address, telephone number, and qualifications of the instructors.  (f) (E)A detailed TIMED outline of the course offering.

(g) (F)A list of instructional materials.

(h) (G)Methodology for verifying and monitoring attendance.

(i) (H)A sample of the certificate of completion which will be given to licensees.

(j) A sample of announcements or brochures of course offerings and the student syllabus.

 

 

(2) If approval is granted, a course number shall be provided to the sponsor by the department.

 

R 339.22654 Distance education; criteria for approval. Rescinded.

Rule 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 as determined by the department before being offered to the public.

(2) A distance learning course shall contain all of the following: (a) All requirements listed in R 339.22653 (1).

(b) The individual modules of instruction on a computer or other interactive program.

(c) A list of at least 1 learning objective for each module of instruction. The learning objective shall ensure that if all the objectives are met the entire content of the course is understood.

(d)A structured learning method to enable the student to attain each learning objective.

(e) A method of assessment of the student's performance during each module of instruction.

(f)A method of remediation for any student who is deficient in the method of assessment to repeat the module until the student understands the content material.

(3) 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) 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.

(4) Equivalent delivery systems may be utilized if they are approved as determined by the department.

(5) The real estate school, institute, or sponsor shall describe in detail on its application how it will deal with hardware and software failures.

R 339.22655 Time periods; course credit. Rescinded.

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

 

R 339.22659 Attendance.

Rule 659. A licensee shall complete a total of 6 clock hours for each annual renewal period. Credit for completion of a course shall only be granted once in each annual renewal period, or as part of the requirement to become relicensed, after a license has lapsed.

 

R 339.22663 Reporting requirements for course completion. Rescinded.

Rule 663. Licensees and course sponsors shall certify the completion of an approved course in a method prescribed by the department. Within 5 calendar days course sponsors shall submit the names of  students who have successfully completed the course to the department.

 

R 339.22664  Student certification of completion. Rescinded.

Rule 664. (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 clock hours completed by the student.  (f) The signature of the course coordinator.

(2) Each student or licensee shall provide a state-issued photo identification or alternative form of identification to the school, sponsor, or institution before receiving the certificate of completion.

 

R 339.22665 Credit earned by instructors.

Rule 665. Instructors may earn their continuing education credit for teaching a course.

(a) Credit shall not be earned if the instructor has previously obtained credit for the same course either as a student or an instructor.

(b) Sponsors shall report the instructor's name on the list of students completing the course according to R 339.22604(8), or continuing education credit for the course taught by the instructor shall not be granted by the department.