Chapter 6: Practice Standards

Chapter 6, formerly known as the E Rules, sets forth the practice standards for Brokers. Important highlights include:

6.3. Employing Broker’s Responsibilities and Supervision.

This rule addresses the high level of supervision required by Employing Brokers in overseeing

Associate Brokers. It modifies the standard that Employing Brokers “review all executed contracts and transaction files” to now “ensuring all executed contracts and transaction files are reviewed.”

6.6. Brokerage Relationships.

This rule was modified to clarify that all team members are considered the Designated Broker on a transaction and requires all team members’ names must be disclosed in the Listing Contracts.

6.7. Brokers or Teams working with Consumers on Both Sides of the Same Transaction.

This rule sets forth the appropriate relationships when working with Consumers on both sides of the same transaction. The rule was modified to clarify that a Broker may work with one Consumer as a Transaction-Broker and treat the other Consumer as a Customer. The relationships are:

1. A Transaction-Broker for both Consumers to the transaction;
2. A Transaction-Broker for one Consumer in the transaction and treating the other Consumer as a Customer; or
3. A Single Agent for one Consumer and treating the other Consumer as a Customer.

6.9. Change of Status Disclosure in Writing.

This rule was modified so that checking the box for “Transaction-Broker” and the box “This is a Change of Status” in the Commission-Approved form, Contract to Buy and Sell Real Estate, is no longer sufficient notification by itself. A Broker must provide the Commission-Approved “Changed of Status” form in order to satisfy the requirements of this rule.

6.10. Advertising.

This rule modified the default tagline statement that a Brokerage Firm may use when advertising a trademark or tradename owned by a third party. A Brokerage Firm may now use either “Each (insert general Trade Name) brokerage business is independently owned and operated” OR “Each office independently owned and operated” as the default tagline statement. This rule was also modified to mandate that all team advertising must include the team name in conjunction with the Brokerage Firm’s name.

6.12. Notice Required on Competitive Market Analysis (CMA) or Broker’s Price Opinion (BPO) for Purposes other Than Marketing.

This rule clarifies that when a BPO or CMA are prepared for any reason other than an anticipated sale, purchase, or lease, they are not considered real estate brokerage services and any compensation received for such preparation need not be paid to the Brokerage Firm unless otherwise stated in the Office Policy Manual. In these instances, a notice must also be included stating: “This evaluation was prepared by a licensed Broker and is not an appraisal. This evaluation cannot be used for the purposes of obtaining financing.”

6.14. Contracts.

This rule was modified to clarify that all Listing Contracts for the sale, lease or exchange of real property must be in writing prior to performing any real estate brokerage services. This rule was also modified to clarify that Brokers should not give advice based on their review of deeds for conveyance of real property, unless such deeds are drafted by the Broker.

6.15. Sign Crossing.

This rule was modified to codify part of Commission Position Statement 3 (Concerning former Rule E-13) and incorporates the provision that the “burden of inquiry is on the Broker to determine the existence of the Listing Contract and to advise the Consumer to seek guidance from a licensed attorney.”

6.16. Access Information for a Property.

This new rule clarifies that property access information must not be shared with any third party without prior approval from the owner’s Broker.

6.20. Transaction File Requirements.

This new rule clarifies that both a Broker and a Brokerage Firm must retain transaction files for a period of four (4) years, beginning from the transaction close date or the expiration date of any Listing Contracts that do not end up closing. A Commission Transaction File Checklist designating the required documents in a transaction file will be provided by the Division on its website.

6.26. Actions when License is Suspended, Revoked, Expired or Inactive.

This rule was modified to add the requirement that any Independent Broker or Brokerage Firm must provide a full list to the Commission of all impacted Consumer’s contact information within seven (7) days of the change of license status.