Bill Text: MI SB1143 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Occupations; real estate; licensure requirements for real estate brokers and salespersons; provide general amendments. Amends secs. 105, 2501, 2502a, 2503, 2504, 2504a, 2505, 2506, 2509, 2510, 2512 & 2512d of 1980 PA 299 (MCL 339.105 et seq.) & adds secs. 2502b, 2512e, 2512f, 2516 & 2516a.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-11-12 - Referred To Committee On Regulatory Reform [SB1143 Detail]

Download: Michigan-2013-SB1143-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1143

 

 

November 12, 2014, Introduced by Senator KOWALL and referred to the Committee on Regulatory Reform.

 

 

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending sections 105, 2501, 2502a, 2503, 2504, 2504a, 2505,

 

2506, 2509, 2510, 2512, and 2512d (MCL 339.105, 339.2501,

 

339.2502a, 339.2503, 339.2504, 339.2504a, 339.2505, 339.2506,

 

339.2509, 339.2510, 339.2512, and 339.2512d), section 105 as

 

amended by 1988 PA 463, sections 2501 and 2512 as amended and

 

section 2512d as added by 2008 PA 90, sections 2502a and 2504 as

 

amended and section 2504a as added by 2014 PA 106, section 2503 as

 

amended by 1990 PA 269, section 2505 as amended by 2003 PA 196,

 

section 2506 as amended by 2011 PA 33, and section 2509 as amended

 

by 1988 PA 16, and by adding sections 2502b, 2512e, 2512f, 2516,

 

and 2516a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 105. (1) "License" means the document issued to a person

 

under this act which will enable that enables the person to use a

 

designated title and practice an occupation, which practice would

 

otherwise be prohibited by this act. License includes a document

 

issued by the department which that permits a school, institution,

 

or person to offer training or education in an occupation or which

 

that permits the operation of a facility, establishment, or

 

institution in which an occupation is practiced. License includes a

 

permit or approval.

 

     (2) "Licensee" means a person who that has been issued a

 

license under this act.

 

     (3) "Limitation" means a condition, stricture, constraint,

 

restriction, or probation attached to a license or registration

 

relative to the scope of practice, including the following:

 

     (a) A requirement that the licensee or registrant perform only

 

specified functions of the licensee's or registrant's occupation.

 

     (b) A requirement that the licensee or registrant perform the

 

licensee's or registrant's occupation only for a specified period

 

of time.

 

     (c) A requirement that the licensee or registrant perform the

 

licensee's or registrant's occupation only within a specified

 

geographical area.

 

     (d) A requirement that restitution be made or certain work be

 

performed before a license or registration is issued, renewed, or

 

reinstated.

 

     (e) A requirement that a financial statement certified by a

 

person an individual who is licensed as a certified public

 

accountant be filed with the department at regular intervals.

 

     (f) A requirement which that reasonably assures a licensee's

 

or registrant's competence to perform the licensee's or

 

registrant's occupation.

 

     (g) A requirement that an attorney review all contracts of a

 

licensee or registrant. be reviewed by an attorney.

 

     (h) A requirement that a licensee or registrant have on file

 

with the department a bond that is issued by a surety insurer

 

approved by the department or cash in an amount determined by the

 

department.

 

     (i) A requirement that a licensee or registrant deposit money

 

received in an escrow account which can be disbursed only under

 

certain conditions as determined by the licensee or registrant and

 

another party.

 

     (j) A requirement that a licensee or registrant file reports

 

with the department at intervals determined by the department.

 

     (4) "Occupation" means a field of endeavor regulated by under

 

this act.

 

     (5) "Person" means an individual; , a sole proprietorship,

 

partnership, association, corporation, limited liability company,

 

or common law trust , or a combination of those legal entities; .

 

Person includes or a department, board, school, institution,

 

establishment, or governmental entity.

 

     (6) "Physical dominion" means control and possession.

 

     (7) "Physician" means that term as defined in section sections

 

17001 and section 17501 of the public health code, Act No. 368 of

 

the Public Acts of 1978, being sections 333.17001 and 333.17501 of

 

the Michigan Compiled Laws.1978 PA 368, MCL 333.17001 and

 

333.17501.

 

     (8) "Probation" means a sanction which that permits a board to

 

evaluate over a period of time a licensee's or registrant's fitness

 

to practice an occupation regulated by under this act.

 

     (9) "Public access" means the right of a person to view and

 

copy files pursuant to under the freedom of information act, Act

 

No. 442 of the Public Acts of 1976, as amended, being sections

 

15.231 to 15.246 of the Michigan Compiled Laws.1976 PA 442, MCL

 

15.231 to 15.246.

 

     (10) "Registrant" means a person who that is registered under

 

this act.

 

     (11) "Registration" means the document issued to a person

 

under this act which will enable that enables the person to use a

 

designated title, which use would be otherwise prohibited by this

 

act.

 

     (12) "Rule" means a rule promulgated under this act and

 

pursuant to under the administrative procedures act of 1969, Act

 

No. 306 of the Public Acts of 1969, as amended, being sections

 

24.201 to 24.328 of the Michigan Compiled Laws.1969 PA 306, MCL

 

24.201 to 24.328.

 

     (13) "State" means the District of Columbia or a commonwealth,

 

state, or territory of the United States.

 

     Sec. 2501. As used in this article:

 

     (a) "Classroom course" means an educational course of

 

instruction that is provided at either of the following:

 

     (i) A physical location where instruction is offered and

 

students and an instructor are present.

 

     (ii) A location where a student receives instruction provided

 

by distance learning.

 

     (b) "Clock hour" means either of the following:

 

     (i) For a classroom course at a location described in

 

subdivision (a)(i), a period of 50 to 60 minutes of actual classroom

 

instruction, not including outside assignments and reading.

 

     (ii) For a classroom course at a location described in

 

subdivision (a)(ii), the period required for a student to process

 

the amount of material provided in 50 minutes of distance learning

 

instruction.

 

     (c) "Control person" means an individual who is a sole

 

proprietor, is a partner in a partnership or limited partnership,

 

is an officer in a corporation, is a member or manager in a limited

 

liability company, or holds a responsible position in any other

 

legal entity authorized under the laws of the state in which the

 

entity is organized or formed.

 

     (d) "Distance learning" means the technology and educational

 

process used to provide instruction for when the course provider

 

and the distance-learning student are not necessarily physically

 

present at the same time or place. The term includes, but is not

 

limited to, instruction provided through an interactive classroom,

 

computer conferencing, or an interactive computer system.

 

     (e) (a) "Employ" or "employment" means the relationship

 

between a real estate broker and an associate broker or a real

 

estate salesperson which may include an independent contractor

 

relationship. The existence of an independent contractor

 

relationship between a real estate broker and an individual

 

licensed to the real estate broker shall does not relieve the real

 

estate broker of the responsibility to supervise acts of the

 

licensee that are regulated by under this article.

 

     (f) (b) "Independent contractor relationship" means a

 

relationship between a real estate broker and an associate broker

 

or real estate salesperson that satisfies both of the following

 

conditions:

 

     (i) A written agreement exists in which the real estate broker

 

does not consider the associate broker or real estate salesperson

 

as an employee for federal and state income tax purposes.

 

     (ii) Not less than At least 75% of the annual compensation paid

 

by the real estate broker to the associate broker or real estate

 

salesperson is from commissions from the sale of real estate.

 

     (g) (c) "Limited service agreement" means a written service

 

provision agreement by which the a real estate broker and client

 

establish an agency relationship in which certain enumerated

 

services, as set forth in section 2512d(3)(b), (c), and (d), are

 

knowingly waived in whole or part by the client.

 

     (h) "Negotiate the mortgage of real estate" means engaging in

 

activity in connection with a mortgage that is not regulated under

 

the mortgage brokers, lenders, and servicers licensing act, 1987 PA

 

173, MCL 445.1651 to 445.1684.

 

     (i) A "nonprincipal" of a real estate broker means an

 

individual who is licensed as an associate real estate broker under

 

this article, but has not been designated as a principal under

 

section 2505(1).

 

     (j) "Pocket card" means the pocket card that contains

 

information about the license that the department provides under

 

section 2506 when it issues a license under this article.

 

     (k) "Prelicensure course" means a course that is represented

 

to the public as fulfilling, in whole or in part, the requirements

 

of section 2504.

 

     (l) A "principal" of a real estate broker means an individual

 

who is designated as a principal of a real estate broker under

 

section 2505(1).

 

     (m) (d) "Professional designation" means a certification from

 

a real estate professional association demonstrating attainment of

 

that demonstrates that an individual has attained proven skills or

 

education in a real estate occupational area and may include the

 

right to use a title or letters after the licensee's name that

 

represent the designation bestowed awarded by the certifying

 

entity.

 

     (n) (e) "Property management" means the leasing or renting, or

 

the offering to lease or rent, of real property of others for a

 

fee, commission, compensation, or other valuable consideration

 

pursuant to a property management employment contract.

 

     (o) (f) "Property management account" means an interest-

 

bearing or noninterest-bearing account or instrument used in the

 

operation of property management.

 

     (p) (g) "Property management employment contract" means the a

 

written agreement that is entered into between a real estate broker

 

and client concerning the real estate broker's employment as a

 

property manager for the client; setting forth that describes the

 

real estate broker's duties, responsibilities, and activities as a

 

property manager; and setting forth that describes the handling,

 

management, safekeeping, investment, disbursement, and use of

 

property management money, funds, and accounts.

 

     (q) (h) "Real estate broker" means an individual, sole

 

proprietorship, partnership, association, corporation, common law

 

trust, or a combination of those entities who a person that, with

 

intent to collect or receive a fee, compensation, or valuable

 

consideration, sells or offers for sale, buys or offers to buy,

 

provides or offers to provide market analyses of, lists or offers

 

or attempts to list, or negotiates the purchase, or sale, or

 

exchange or mortgage of real estate; , or that negotiates the

 

mortgage of real estate; that negotiates for the construction of a

 

building on real estate; who that leases or offers or rents or

 

offers for rent real estate or the improvements on the real estate

 

for others, as a whole or partial vocation; who that engages in

 

property management as a whole or partial vocation; who that sells

 

or offers for sale, buys or offers to buy, leases or offers to

 

lease, or negotiates the purchase or sale or exchange of a

 

business, business opportunity, or the goodwill of an existing

 

business for others; or who, that, as owner or otherwise, engages

 

in the sale of real estate as a principal vocation.

 

     (r) (i) "Real estate salesperson" means a person an individual

 

who for compensation or valuable consideration is employed either

 

directly or indirectly by a licensed real estate broker to sell or

 

offer to sell, to buy or offer to buy, to provide or offer to

 

provide market analyses of, to list or offer or attempt to list, or

 

to negotiate the purchase, or sale, or exchange or mortgage of real

 

estate; , or to negotiate the mortgage of real estate; to negotiate

 

for the construction of a building on real estate, or to lease or

 

offer to lease, or rent or offer for rent, real estate; , who is

 

employed by a real estate broker to engage in property management;

 

, or who sells or offers for sale, buys or offers to buy, leases or

 

offers to lease, or negotiates the purchase or sale or exchange of

 

a business, business opportunity, or the goodwill of an existing

 

business for others, as a whole or partial vocation.

 

     (s) (j) "Service provision agreement" means a buyer agency

 

agreement or listing agreement that is executed by a real estate

 

broker and a client that and establishes an agency relationship.

 

     (t) "Sponsor" means a person that is approved by a statewide

 

real estate trade association, with which the department has

 

contracted under section 210 for that purpose; and that represents

 

to the public that the courses it conducts for purposes of this

 

article fulfill the requirements of section 2504a for continuing

 

education.

 

     Sec. 2502a. (1) The department shall issue a license for a

 

real estate broker, associate real estate broker, and real estate

 

salesperson for a term of 3 years. The department shall not issue a

 

license to an individual who is under the age of 18 years. The

 

department may require that an applicant who is an individual

 

submit a report from an independent source pertaining to his or her

 

previous occupation, criminal record, or any other information the

 

department considers material to the applicant's qualifications for

 

licensure.

 

     (2) The department shall renew a license for a real estate

 

broker, associate real estate broker, or real estate salesperson if

 

the department receives an application for renewal on a form

 

prescribed by the department, and payment of the appropriate fees,

 

within the time period described in section 411(1) or (2), and the

 

applicable requirements of section 2504a are met.

 

     (3) The department may relicense without examination a person

 

that an individual who fails to renew a license issued under this

 

article within the time period described in subsection (2) if all

 

of the following are met:

 

     (a) The person individual applies within 3 years after the

 

expiration date of the person's his or her last license.

 

     (b) The person individual pays an application processing fee,

 

the late renewal fee, and the per-year license fee for the upcoming

 

licensure period.

 

     (c) The person individual completes 6 clock hours of

 

continuing education for each year and partial year that have

 

elapsed since the expiration of the person's individual's last

 

license, on the topics described in section 2504a(1).

 

     (4) The department may relicense a person that failed to renew

 

a real estate broker license within 3 years after the expiration

 

date of the person's last license if the person pays an application

 

processing fee, the late renewal fee, and the per-year license fee

 

for the upcoming licensure period and submits proof that the

 

person, if the person is an individual, or the individual

 

designated as the person's principal under section 2505 if the

 

person is not an individual, meets any of the following:

 

     (a) Has completed a total of 6 clock hours of continuing

 

education for each year and partial year that have elapsed since

 

the expiration of the person's last license, on the topics

 

described in section 2504a(1).

 

     (b) Has completed 90 clock hours of prelicensure courses

 

described in section 2504(3).

 

     (c) Has passed the examination required for a real estate

 

broker license under section 2505(5).

 

     (5) The department may relicense an individual who failed to

 

renew a real estate salesperson license within 3 years after the

 

expiration date of his or her last license if he or she pays an

 

application processing fee, the late renewal fee, and the per-year

 

license fee for the upcoming licensure period and submits proof

 

that he or she meets any of the following:

 

     (a) Has completed a total of 6 clock hours of continuing

 

education for each year and partial year that have elapsed since

 

the expiration of his or her last license, on the topics described

 

in section 2504a(1).

 

     (b) Has completed 40 clock hours of prelicensure courses

 

described in section 2504(3).

 

     (c) Has passed the examination required for a real estate

 

salesperson license under section 2505(5).

 

     (6) A person whose license has been revoked shall not apply

 

for a new license for at least 3 years after the service of the

 

final order of the revocation. 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, and

 

the applicant shall not receive credit for education or experience

 

acquired, or examinations passed, before the revocation.

 

     Sec. 2502b. (1) Unless the owner engages the services of a

 

real estate broker in connection with those sales, a person that is

 

the owner of real estate must obtain a license as a real estate

 

broker to engage in the sale of that real estate as a principal

 

vocation. For purposes of this subsection, each of the following is

 

considered engaging in the sale of real estate as a principal

 

vocation:

 

     (a) Engaging in more than 5 real estate sales in any 12-month

 

period.

 

     (b) Representing to the public that the person is principally

 

engaged in the sale of real estate.

 

     (c) Devoting over 50% of an individual's working time, or more

 

than 15 hours per week in any 6-month period, to the sale of real

 

estate.

 

     (d) If the person is a real estate salesperson, a sale of real

 

estate other than his or her principal residence.

 

     (2) A sale of real estate that is owned by, or under option

 

to, a real estate broker or associate real estate broker is subject

 

to the provisions of this article.

 

     (3) If a licensee is selling property that is owned by the

 

licensee or in which the licensee has an interest, the licensee

 

shall reveal the facts of the licensee's ownership or interest and

 

the licensee's licensure to the purchaser, in writing, before an

 

offer to purchase is signed. A licensee shall provide written proof

 

of this disclosure that is satisfactory to the department on

 

request by the department.

 

     Sec. 2503. (1) This article shall does not apply to an

 

individual, partnership, association, or corporation, who a person

 

that, as owner, sells or offers for sale a detached, single family

 

dwelling, duplex, triplex, or quadruplex, which that has never been

 

occupied and which that was built by the individual, partnership,

 

association, or corporation person while licensed under article 24.

 

This article does not apply to an individual, partnership,

 

association, or corporation, who as owner or lessor, or as an

 

attorney-in-fact acting under a duly executed and recorded power of

 

attorney from the owner or lessor, or who has been a person

 

appointed by a court, that performs an act as a real estate broker

 

or real estate salesperson with reference to property owned by it,

 

unless performed as a principal vocation not through a licensed

 

real estate broker.

 

     (2) This article shall does not include the services rendered

 

by apply to an attorney-at-law who is rendering services as an

 

attorney-at-law; , nor shall it include to a receiver, trustee in

 

bankruptcy, administrator, executor, a person selling real estate

 

under order of a court; , nor or to a trustee selling under a deed

 

of trust, . This exemption of a trustee shall not apply to unless

 

the trustee makes repeated or successive sales of real estate by

 

the trustee, unless the sale is made not through a licensed real

 

estate broker.

 

     (3) This article does not apply to a person who that is

 

regulated under the mortgage brokers, lenders, and servicers

 

licensing act, Act No. 173 of the Public Acts of 1987, being

 

sections 445.1651 to 445.1683 of the Michigan Compiled Laws, 1987

 

PA 173, MCL 445.1651 to 445.1684, and who that does not perform any

 

other act requiring a license as a real estate broker, associate

 

broker, or real estate salesperson.

 

     (4) For the purposes of this article, "negotiate the mortgage

 

of real estate" as described in section 2501, means engaging in

 

activity not regulated under Act No. 173 of the Public Acts of

 

1987.

 

     Sec. 2504. (1) Both of the following must be met before an

 

applicant receives a real estate broker's license under this

 

article:

 

     (a) The applicant must submit an application under section

 

2505.

 

     (b) The applicant, if the applicant is an individual, or the

 

individual designated as the principal of the applicant under

 

section 2505 if the applicant is not an individual, must

 

successfully complete at least 90 clock hours of approved

 

prelicensure classroom courses in real estate. , of which at All of

 

the following apply to these 90 hours of instruction:

 

     (i) At least 9 clock hours is must be instruction on civil

 

rights law and equal opportunity in fair housing law.

 

     (ii) The 90 hours are in addition to the hours required to

 

obtain a real estate salesperson's license.

 

     (iii) The applicant must complete the 90 hours within the 36-

 

month period preceding the date of the application unless the

 

applicant has held a license as a real estate salesperson for that

 

period.

 

     (iv) Possession of a law degree, obtained any time before the

 

date of application, is considered equal to, and the applicant

 

shall receive credit for, 60 of the 90 clock hours of instruction

 

under this subdivision, and 6 of the 9 clock hours of instruction

 

in civil rights law and fair housing law required under

 

subparagraph (iii).

 

     (v) Possession of a master's degree in business administration

 

from a degree- or certificate-granting public or independent

 

nonprofit college or university, junior college, or community

 

college, obtained any time before the date of application, is

 

considered equal to, and the applicant shall receive credit for, 60

 

of the 90 clock hours of instruction under this subdivision.

 

     (2) Before he or she is permitted to take the real estate

 

salesperson's examination, the an applicant must show proof that he

 

or she has successfully completed at least 40 clock hours of

 

approved prelicensure classroom courses in principles of real

 

estate, of which including at least 4 clock hours is instruction on

 

civil rights law and equal opportunity in housing. The applicant

 

must complete the 40 hours of prelicensure education within the 36-

 

month period preceding the date of the application.

 

     (3) For purposes of subsections (1) and (2), an approved

 

prelicensure courses may be on course is a classroom course that

 

meets all of the following:

 

     (a) Meets criteria established by the department.

 

     (b) Is approved by the department; or is reviewed by a

 

statewide real estate trade association, with which the department

 

has contracted under section 210 for that purpose, for subject

 

matter relevant to the practice of real estate.

 

     (c) Covers 1 or more of the following topics:

 

     (i) (a) Real estate license law and related regulatory laws.

 

     (ii) (b) Real property law, including property interests and

 

restrictions.

 

     (iii) (c) Federal, state, and local tax laws affecting real

 

property.

 

     (iv) (d) Conveyances, including contracts, deeds, and leases.

 

     (v) (e) Financing, including mortgages, land contracts,

 

foreclosure, and limits on lending procedures and interest rates.

 

     (vi) (f) Appraisal of real property.

 

     (vii) (g) Design and construction.

 

     (viii) (h) Marketing, exchanging, and counseling.

 

     (ix) (i) The law of agency.

 

     (x) (j) Sales and office management, including listing and

 

selling techniques.

 

     (xi) (k) Real estate securities and syndications.

 

     (xii) (l) Investments, including property management.

 

     (4) A person that offers or conducts a prelicensure course or

 

courses of study that are represented to meet the educational

 

requirements of this section shall first obtain approval from the

 

department and shall comply with the rules of the department

 

concerning curriculum, instructor qualification, grading system,

 

and other related matters. A course shall be designed to be taught

 

for at least 1 clock hour, not including time spent on breaks,

 

meals, or other unrelated activities. The department may suspend or

 

revoke the approval of a person approved under this subsection for

 

a violation of this article or of the rules promulgated under this

 

article. A person that offers or conducts a course shall not

 

represent that its students are assured of passing an examination

 

required by the department. A person shall not represent that the

 

issuance of departmental approval under this subsection is a

 

recommendation or indorsement of the person to which it is issued

 

or of a course of instruction given by it. A prelicensure course

 

approved under this section shall be conducted by a local public

 

school district, a community college, an institution of higher

 

education authorized to grant degrees, or a proprietary school

 

licensed by the department under the proprietary schools act, 1943

 

PA 148, MCL 395.101 to 395.103.

 

     (5) A person that violates subsection (4) in operating a

 

school that provides 1 or more courses described in this section is

 

subject to the penalties set forth in article 6.

 

     (6) The department may conduct, hold, or assist in conducting

 

or holding, a real estate clinic, meeting, course, or institute,

 

which shall be open to a person licensed under this article, and

 

may incur the necessary expenses in connection with the clinic,

 

meeting, course, or institute. The department, in the public

 

interest, may assist educational institutions in this state in

 

sponsoring studies, research, and programs for the purpose of

 

raising the standards of professional practice in real estate and

 

the competence of a licensee.

 

     Sec. 2504a. (1) Within each 3-year license cycle, a licensee

 

shall successfully complete at least 18 clock hours of continuing

 

education courses that are approved by a statewide real estate

 

trade association, with which the department has contracted under

 

section 210 for that purpose; are conducted by a continuing

 

education instructor who meets subsection (6); and involve any

 

subjects that are relevant to the management, operation, and

 

practice of real estate or any other subject that contributes to

 

the professional competence of a licensee or applicant. All of the

 

following apply to this continuing education requirement:

 

     (a) In each calendar year of each 3-year license cycle, a

 

licensee shall complete at least 2 hours of the required 18 hours

 

of continuing education courses.

 

     (b) In completing the appropriate number of continuing

 

education courses, a licensee may select education courses in his

 

or her area of expertise, but at least 2 hours of the education

 

courses in a calendar year must involve law, rules, and court cases

 

regarding real estate.

 

     (c) At the time he or she attends a continuing education

 

course, a licensee shall do both of the following to confirm his or

 

her identity:

 

     (i) Present his or her pocket card, or provide his or her

 

license identification number, from the department to the course

 

provider.

 

     (ii) Present his or her operator's license or chauffeur's

 

license issued under the Michigan vehicle code, 1949 PA 300, MCL

 

257.1 to 257.923, an official state personal identification card

 

issued under 1972 PA 222, MCL 28.291 to 28.300, or other

 

government-issued photo identification to the course provider.

 

     (d) Any education course that the licensee successfully

 

completes to obtain a professional designation is counted toward

 

the total continuing education credits required in a 3-year license

 

cycle.

 

     (e) If a licensee successfully completes a continuing

 

education course, he or she does not earn additional hours toward

 

the requirements of this section if he or she repeats that course.

 

     (2) An applicant for license renewal under section 2502a shall

 

certify compliance with subsection (1) to the department. A

 

licensee shall retain evidence acceptable to the department that

 

demonstrates he or she has met the continuing education

 

requirements under this section, for at least 4 years after the

 

date of that certification, and shall produce the record that

 

contains that evidence at the request of the department. The

 

department shall consider the following as acceptable evidence

 

under this subsection:

 

     (a) The name and contact information of the continuing

 

professional education program sponsor.

 

     (b) The participant's name.

 

     (c) The course title and course field of study.

 

     (d) The date the course was offered or completed.

 

     (e) If applicable, the location of the course.

 

     (f) The type of instruction or delivery method used for

 

presenting the course.

 

     (g) Verification by a representative of the continuing

 

professional education program sponsor of the participant's

 

completion of the course.

 

     (h) A time statement from the continuing professional

 

education program sponsor that states that continuing professional

 

education credits for the course were granted on a 50-minute hour.

 

     (3) An applicant for license renewal under section 2502a is

 

subject to audit by the department for compliance with subsection

 

(1) or (6) and may be required to submit the documentation

 

described in subsection (2) to the department on request.

 

     (4) If the department finds as the result of an audit under

 

subsection (3) that an applicant for license renewal under section

 

2502a has not completed sufficient hours of continuing education to

 

renew his or her license, the department may allow the applicant to

 

renew his or her license by completing both of the following, if

 

applicable:

 

     (a) A sufficient number of additional hours of continuing

 

education to fulfill the requirements for the period determined by

 

audit to be deficient.

 

     (b) If the period determined by the audit to be deficient is

 

at least 60 days, additional hours of continuing education in 1 of

 

the following amounts:

 

     (i) If the deficiency period is at least 60 days and less than

 

120 days, 4 hours.

 

     (ii) If the deficiency period is 120 days or more, 8 hours.

 

     (5) Hours of additional continuing education required under

 

subsection (4)(b) do not apply toward continuing education required

 

in the next 3-year license cycle. The department may waive the

 

requirement for additional hours under subsection (4)(b) if the

 

applicant demonstrates to the department that the additional hours

 

would present an undue hardship on the applicant.

 

     (6) A real estate broker, associate broker, or salesperson who

 

receives a license issued in the second or third year of a 3-year

 

license cycle is required to comply with the continuing education

 

requirements under subsection (1), except as follows:

 

     (a) A real estate broker, associate broker, or salesperson who

 

receives a license issued in the second year of the 3-year license

 

cycle is required to complete 12 hours of continuing education.

 

     (b) A real estate broker, associate broker, or salesperson who

 

receives a license issued in the third year of the 3-year license

 

cycle is required to complete 6 hours of continuing education.

 

     (7) An individual shall not conduct a continuing education

 

course under subsection (1) as an instructor unless he or she meets

 

at least 1 of the following minimum qualifications:

 

     (a) Is or was engaged as an instructor of real estate courses

 

at a degree- or certificate-granting public or independent

 

nonprofit college or university, junior college, or community

 

college.

 

     (b) Is properly certified by a statewide real estate trade

 

association, with which the department has contracted under section

 

210 for that purpose, and who is engaged in the real estate aspects

 

of appraising, financing, marketing, brokerage management, real

 

property management, real estate counseling, real property law, or

 

other related subjects.

 

     (c) Possesses alternative qualifications that are approved by

 

a statewide real estate trade association, with which the

 

department has contracted under section 210 for that purpose, and

 

who is qualified by experience, education, or both to supervise and

 

instruct a course of study described in subsection (1).

 

     (8) (7) Course credits used to meet continuing education

 

requirements under this section do not apply toward the real estate

 

broker's license prelicensure education requirements under section

 

2504, and course credits successfully completed under real estate

 

broker's license prelicensure education requirements under section

 

2504 do not apply toward the continuing education requirements of

 

this section.

 

     Sec. 2505. (1) An applicant A person that is applying for a

 

real estate broker's license shall file an application setting

 

forth with the department. All of the following apply to an

 

application for a real estate broker's license:

 

     (a) The application must include the applicant's present

 

address, both of business and current business address; if the

 

applicant is an individual, the address of his or her residence;

 

and the complete address of each former place where the applicant

 

has resided or been was engaged in business, or acted as a real

 

estate salesperson, for a period of 60 days or more, during the 5

 

years immediately preceding the date of application. An applicant

 

for a real estate broker's license shall state

 

     (b) The application must include the name of the individual,

 

sole proprietorship, partnership, association, corporation, limited

 

liability company, common law trust, or a combination of those

 

entities and person that is the proposed licensee; the location of

 

the place for which the license is desired, sought; and set forth

 

the period of time in which the applicant has been engaged in the

 

business. The application shall be executed by the person, or by an

 

officer or member of the applicant. An applicant for a real estate

 

broker's license which is a partnership, association, corporation,

 

limited liability company, common law trust, or a combination of

 

those entities

 

     (c) The application must be executed by the applicant, if the

 

applicant is an individual, or by a principal of the applicant if

 

the applicant is a legal entity.

 

     (d) If the applicant is a legal entity, the application shall

 

designate which individuals who are officers or members of the

 

partnership, association, limited liability company, or corporation

 

control persons of the entity will be performing acts regulated by

 

this article as principals.

 

     (2) The department shall issue a real estate broker's license

 

to an applicant that is a legal entity only if 1 or more of the

 

control persons of the entity hold an associate real estate

 

broker's license. The department shall not issue a real estate

 

broker's license to a new applicant who that has been convicted of

 

embezzlement or misappropriation of funds.

 

     (3) A real estate broker shall maintain a principal place of

 

business at an actual physical location in this state where the

 

real estate broker conducts its broker business and maintains its

 

books and records. If All of the following apply if a real estate

 

broker maintains more than 1 its principal place of business within

 

the state, a branch office license shall be secured by the real

 

estate broker for each branch office maintained. A branch office

 

maintained in excess of in this state:

 

     (a) The real estate broker must obtain a branch office license

 

for each additional place of business that the real estate broker,

 

by advertising or signs or otherwise, represents to the public is a

 

place where clients or customers may do business or consult with a

 

licensee.

 

     (b) A branch office that is located more than 25 miles from

 

the city limits in which the broker maintains a main office its

 

principal place of business shall be under the personal, direct

 

supervision of an associate broker.

 

     (4) An applicant application for a salesperson's license shall

 

set forth include the period of time during which the individual

 

has been engaged in the business, stating the name of the

 

applicant's last employer, and the name and the place of business

 

of the individual, partnership, association, limited liability

 

company, corporation, common law trust, or combination of those

 

entities then employing person that now employs or will employ the

 

applicant. or in whose employ the applicant is to enter. The

 

application shall be signed by the real estate broker in whose that

 

will employ the applicant. is to enter. The department shall only

 

issue a real estate salesperson's license to an individual.

 

     (5) Before issuing a license, the department may shall require

 

and procure satisfactory proof of the business experience,

 

competence, and good moral character of an applicant for a real

 

estate broker's or license if the applicant is an individual; of

 

each control person of the applicant if the applicant is a legal

 

entity; or of an applicant for a salesperson's license, or of an

 

officer or member of an applicant. The department shall require an

 

applicant for a broker's or salesperson's license to and, subject

 

to subsection (6), require that each of those individuals pass an

 

examination developed by the department or contracted for with a

 

recognized outside testing agency establishing, that establishes,

 

in a manner satisfactory to the department, that the applicant he

 

or she has a fair knowledge of the English language, including

 

reading, writing, spelling, and elementary arithmetic; a

 

satisfactory understanding of the fundamentals of real estate

 

practice and of the laws and principles of real estate

 

conveyancing, deeds, mortgages, land contracts, and leases; the

 

obligations of a broker to the public and a principal; and the law

 

defining, regulating, and licensing real estate brokers and

 

salespersons. The department may require written examination or

 

written reexamination of a broker or salesperson, and in that case

 

an individual described in this subsection, and if the department

 

does require a written examination or reexamination under this

 

subsection, the department shall not relicense the real estate

 

broker or real estate salesperson unless the individual taking the

 

examination or reexamination achieves a passing score satisfactory

 

to the department. is required as a condition precedent to

 

relicensure of a broker or salesperson.

 

     (6) All of the following apply to the written examination

 

requirement described in subsection (5):

 

     (a) An individual who qualifies under the Americans with

 

disabilities act of 1990, Public Law 101-336, may request

 

reasonable accommodations to take the examination.

 

     (b) Under section 2502a(3), the department may relicense

 

without examination of the applicant, or the applicant's principal

 

if appropriate, an applicant that applies within 3 years of the

 

expiration date of the applicant's last license.

 

     (c) The department may relicense without examination an

 

individual who is applying for a real estate broker's or associate

 

real estate broker's license; has previously surrendered a real

 

estate broker's or associate real estate broker's license; and has

 

been continuously licensed as a real estate salesperson since the

 

surrender.

 

     (d) A passing score on an examination, or on a portion of an

 

examination if the examination is given in separate parts, is valid

 

for 1 year from the date of the examination.

 

     (7) The department shall require proof that each applicant for

 

a real estate broker's license, if the applicant is an individual,

 

or each principal if the applicant is a legal entity, has the

 

equivalent of 3 years of full-time experience in the business of

 

real estate. or in a field that is determined by the department to

 

be relevant and related to the business of real estate.All of the

 

following apply in determining whether an individual meets this

 

experience requirement:

 

     (a) If state law requires that a person hold a license to be

 

licensed to perform an activity that is considered the business of

 

real estate, an individual shall not receive credit for experience

 

performing that activity without proper licensure.

 

     (b) For purposes of calculating whether an individual has the

 

equivalent of 3 years of experience, the department shall grant the

 

following credit or credits toward that 3-year requirement:

 

     (i) If the individual is a real estate salesperson, a real

 

estate broker, or the principal of a real estate broker, 1 year of

 

credit for each 12-month period of licensure in which he or she

 

closed 6 or more real estate transactions.

 

     (ii) If the individual is a builder, 1 year of credit for each

 

12-month period in which he or she built and personally sold or

 

leased at least 6 residential units, commercial units, or

 

industrial units or a combination of those types of units.

 

     (iii) If the individual is a real estate investor, 6 months of

 

credit for each 6 real property transactions personally negotiated

 

for a purchase or sale by the individual for his or her own

 

account, with a maximum of 1 year of credit allowed. However, an

 

individual shall not receive credit under this subdivision if he or

 

she engaged in more than 6 sales in any 12-month period in

 

violation of section 2502b.

 

     (iv) If the individual is a land or condominium developer, 1

 

year of credit for each 2 developments or subdivisions that contain

 

at least 10 units or parcels that he or she bought, subdivided, and

 

improved for sale as lots or dwellings.

 

     (v) If the individual is an attorney, 1 year of experience for

 

each year in which he or she acted as the attorney for at least 6

 

real estate transactions.

 

     (vi) One year of credit for each period equivalent to at least

 

40 hours per week, and at least 48 weeks per year, in which the

 

individual worked in a capacity directly related to the

 

acquisition, financing, or conveyance of real estate, or in a

 

position in which the individual was directly involved in a real

 

estate business, including serving as the decision-making authority

 

in any of the following positions:

 

     (A) A loan or trust officer of a federal or state-regulated

 

depository institution.

 

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

 

     (C) A real estate officer of a corporation, and who is not a

 

licensed real estate broker.

 

     (D) A title insurance company officer engaged in the closing

 

of escrow accounts and real estate closings.

 

     (E) A staff or real property appraiser.

 

     Sec. 2506. (1) An individual shall not act as a real estate

 

broker, associate real estate broker, or real estate salesperson if

 

he or she has not received from the department his or her license

 

and pocket card or received a temporary license. An individual

 

licensed under this article shall not act as a real estate broker,

 

associate real estate broker, or real estate salesperson if he or

 

she does not have, on his or her person, his or her pocket card or

 

temporary license.

 

     (2) (1) The department shall deliver or mail the license of a

 

real estate salesperson to the real estate broker that employs the

 

real estate salesperson, and the broker shall retain custody and

 

control of the salesperson's certificate of license and deliver the

 

pocket card for that license to the salesperson. A real estate

 

salesperson shall provide proof to the real estate broker that

 

employs him or her that the real estate salesperson was issued and

 

currently holds a real estate salesperson license.

 

     (3) (2) A licensee shall give written notice to the department

 

of any change of either a principal or branch business location.

 

     (3) As used in this subsection, "pocket card" means the pocket

 

card that contains information about the license that the

 

department provides when it issues a license under this article.

 

     (4) If he or she receives notice that his or her license is

 

suspended or revoked, a real estate salesperson, or an associate

 

real estate broker that is not the sole associate real estate

 

broker for a real estate broker that is not an individual, shall

 

immediately forward his or her pocket card to the department and

 

the real estate broker to which the individual was licensed shall

 

immediately forward the salesperson's or associate real estate

 

broker's license to the department. If he or she receives notice

 

that his or her license is suspended or revoked, a real estate

 

broker who is an individual, or an associate real estate broker who

 

is the sole associate real estate broker for a real estate broker

 

that is not an individual, shall immediately forward to the

 

department his or her license and pocket card, the licenses and

 

pocket cards of all real estate salespersons and nonprincipal

 

associate real estate brokers issued under the real estate broker,

 

and all of the real estate broker's branch office licenses.

 

     Sec. 2509. (1) The department shall only issue an associate

 

real estate broker's license to an individual.

 

     (2) (1) A principal may be issued The department may issue

 

more than 1 associate real estate broker's license to principals of

 

a real estate broker.

 

     (3) (2) A nonprincipal shall not be issued The department may

 

not issue more than 1 associate real estate broker's license as a

 

nonprincipal, but a nonprincipal may hold 1 or more associate real

 

estate broker's licenses as a principal.

 

     (3) As used in this section and section 2508:

 

     (a) "Nonprincipal" means an individual who is licensed as an

 

associate real estate broker, but has not been designated as a

 

principal under section 2505(1).

 

     (b) "Principal" means an individual designated as a principal

 

under section 2505(1).

 

     Sec. 2510. (1) A real estate salesperson shall not accept from

 

a person other than the real estate salesperson's employer a

 

commission or valuable consideration for the performance of an act

 

specified in this article from any person other than the real

 

estate broker that employs the salesperson.

 

     (2) If an individual earned commissions or other income while

 

employed by a real estate broker, it is not grounds for

 

disciplinary action under section 2512 for that broker to pay those

 

commissions or income to that individual, regardless of whether

 

that individual is now employed by another real estate broker or is

 

no longer licensed.

 

     Sec. 2512. A licensee who that commits 1 or more of the

 

following is subject to the penalties set forth in article 6:

 

     (a) Except in a case involving property management, acts for

 

more than 1 party in a transaction without the knowledge of the

 

parties.

 

     (b) Fails to provide a written agency disclosure to a

 

prospective buyer or seller in a real estate transaction as defined

 

in section 2517.

 

     (c) Represents If the licensee is an associate real estate

 

broker or real estate salesperson, represents or attempts to

 

represent a real estate broker other than the his or her employer

 

without the express knowledge and consent of the employer.

 

     (d) Fails to account for or to remit money coming that comes

 

into the licensee's possession which that belongs to others.

 

     (e) Changes a business location without notification to the

 

department.

 

     (f) In the case of If the licensee is a real estate broker,

 

fails to return a real estate salesperson's license within 5 days

 

as provided in under section 2507.

 

     (g) In the case of a If the licensee engaged in property

 

management, violates section 2512c(2), (5), or (6).

 

     (h) Except as provided in section 2512b, 2510(2), shares or

 

pays a fee, commission, or other valuable consideration to a person

 

that is not licensed under this article, including payment to any

 

person providing the names that provides the name of, or any other

 

information regarding, a potential seller or purchaser of real

 

estate but excluding payment for the purchase of a commercially

 

prepared lists list of names. However, a licensed real estate

 

broker may pay a commission to a licensed real estate broker of

 

that is licensed by another state if the nonresident real estate

 

broker does not conduct in this state a negotiation for which a

 

commission is paid.

 

     (i) Conducts or develops a market analysis not in compliance

 

that does not comply with section 2601(a)(ii).

 

     (j) Fails to provide the minimum services as specified in

 

under section 2512d(3) when providing services pursuant to under a

 

service provision agreement unless expressly waived in writing by

 

the client under section 2517(3).2517(2).

 

     (k) Except in the case of connection with a property

 

management accounts, account, fails to deposit in the real estate

 

broker's custodial trust or escrow account money belonging that

 

belongs to others coming that comes into the hands possession of

 

the licensee in compliance with any of the following types of

 

transactions:

 

     (i) A real estate broker shall retain a deposit or other money

 

made payable to a person , partnership, corporation, or association

 

holding that holds a real estate broker's license under this

 

article pending consummation or termination of the transaction

 

involved and shall account for the full amount of the money at the

 

time of the consummation or termination of the transaction.

 

     (ii) A real estate salesperson shall pay over or deliver to the

 

real estate broker, upon on receipt, a deposit or other money on

 

paid in connection with a transaction in which the real estate

 

salesperson is engaged on behalf of the real estate broker.

 

     (iii) A real estate broker shall not deposit or permit the

 

deposit of an advance payment of funds belonging money that belongs

 

to others to be deposited in the real estate broker's business or

 

personal account or to be commingled commingle or permit the

 

commingling of that money with funds on deposit belonging that

 

belong to the real estate broker.

 

     (iv) A real estate broker shall deposit, within 2 banking days

 

after the broker has received notice that an offer to purchase is

 

accepted by all parties, money belonging that belongs to others and

 

is made payable to the real estate broker into a separate custodial

 

trust or escrow account maintained by the real estate broker with a

 

bank, savings and loan association, credit union, or recognized

 

depository until the transaction involved is consummated or

 

terminated, at which time the real estate broker shall account for

 

the full amount received.

 

     (v) A real estate broker shall keep records of funds money

 

deposited in its custodial trust or escrow account, which and

 

indicate clearly in those records shall indicate clearly the date

 

and from whom the money was received, the date deposited, the date

 

of withdrawal, and other pertinent information concerning the

 

transaction , and shall show clearly for whose account the money is

 

deposited and to whom the money belongs. The records shall be are

 

subject to inspection by the department. A real estate broker's

 

separate custodial trust or escrow account shall designate the real

 

estate broker as trustee, and the custodial trust or escrow account

 

shall provide for withdrawal of funds without previous notice. This

 

article and the rules promulgated pursuant to under this article do

 

not prohibit the deposit of money accepted under this section in a

 

noninterest bearing account of a state or federally chartered

 

savings and loan association or a state or federally chartered

 

credit union.

 

     (vi) If a purchase agreement signed by a seller and purchaser

 

provides that a deposit be held by an escrowee other than a real

 

estate broker shall hold a deposit, a licensee in possession of

 

such a that deposit shall cause the deposit to be delivered to the

 

named escrowee within 2 banking days after the licensee has

 

received receives notice that an offer to purchase is accepted by

 

all parties.

 

     (l) Becomes a party to a net service provision agreement for an

 

owner, seller, or buyer as a means of securing a commission.

 

     (m) If the licensee is entitled to receive, either directly or

 

indirectly, a real estate commission as a result of the sale of

 

property, also receives a referral fee or other valuable

 

consideration from a lender abstract, home warranty, or other

 

settlement service provider in connection with the transaction

 

unless the licensee obtains the prior written consent of the party

 

or parties with which the licensee has an agency relationship and

 

the fee is not otherwise prohibited by the real estate settlement

 

procedures act of 1974, Public Law 93-533, or other applicable law.

 

     Sec. 2512d. (1) A real estate broker or real estate

 

salesperson that is acting pursuant to under the terms of a service

 

provision agreement shall perform the duties imposed described in

 

subsection (2). A real estate broker may authorize a designated

 

agent to represent the client, so long as if that authorization is

 

in writing.

 

     (2) A real estate broker or real estate salesperson acting

 

pursuant to under the terms of a service provision agreement owes,

 

at a minimum, the following duties to his or her that broker's or

 

salesperson's client:

 

     (a) The exercise of reasonable care and skill in representing

 

the client and carrying out the responsibilities of the agency

 

relationship.

 

     (b) The performance of the terms of the service provision

 

agreement.

 

     (c) Loyalty to the interest of the client.

 

     (d) Compliance with the laws, rules, and regulations of this

 

state and any applicable federal statutes or regulations.

 

     (e) Referral of the client to other licensed professionals for

 

expert advice related to material matters that are not within the

 

expertise of the licensed agent.broker.

 

     (f) An accounting in a timely manner of all money and property

 

received by the agent broker in which the client has or may have an

 

interest.

 

     (g) Confidentiality of all information obtained in the course

 

of the agency relationship, unless disclosed with the client's

 

permission or as provided by law, including the duty not to

 

disclose confidential information to any licensee who is not an

 

agent of the client.

 

     (3) A real estate broker or real estate salesperson that is

 

acting pursuant to under the terms of a service provision agreement

 

shall provide the following services to his or her that broker's or

 

salesperson's client:

 

     (a) When If the real estate broker or real estate salesperson

 

is representing a seller or lessor, the marketing of the client's

 

property in the manner agreed upon on in the service provision

 

agreement.

 

     (b) Acceptance of delivery and presentation of offers and

 

counteroffers to buy, sell, or lease the client's property or the

 

property the client seeks to purchase or lease. At the time of

 

execution of an offer to purchase, a licensee shall recommend to

 

the purchaser that the purchaser require that the seller provide a

 

fee title policy in the amount of the purchase price to the

 

purchaser, issued or certified to the approximate date of closing

 

of the real estate transaction.

 

     (c) Assistance in developing, communicating, negotiating, and

 

presenting offers, counteroffers, and related documents or notices

 

until a purchase or lease agreement is executed by all parties and

 

all contingencies are satisfied or waived.

 

     (d) After execution of a purchase agreement by all parties,

 

assistance as necessary to complete the transaction under the terms

 

specified in the purchase agreement. Without written approval of

 

the buyer and seller, a licensee shall not close a transaction on

 

any terms or conditions that are contrary to the terms or

 

conditions of an executed purchase agreement.

 

     (e) For a broker or associate broker who that is involved at

 

the closing of a real estate or business opportunity transaction,

 

furnishing, or causing to be furnished, to the buyer and seller, a

 

complete and detailed closing statement signed by the broker or

 

associated associate broker showing each party all receipts and

 

disbursements affecting that party. If the closing is conducted at

 

a depository financial institution, as defined in section 1a of the

 

mortgage brokers, lenders, and servicers licensing act, 1987 PA

 

173, MCL 445.1651a, a title company, or other closing entity, the

 

real estate broker or associate real estate broker remains

 

responsible for the content of the closing statement and shall sign

 

the final closing document. A real estate salesperson shall not

 

close a real estate or business opportunity transaction unless the

 

transaction is closed under the supervision of the real estate

 

broker that employs the salesperson. In a cooperative transaction,

 

either a real estate broker or associate real estate broker may

 

close the sale and furnish closing statements, but it remains the

 

final responsibility of the listing real estate broker to close the

 

sale and furnish signed closing statements to both the buyer and

 

seller.

 

     (4) A real estate broker or real estate salesperson that is

 

representing a seller under a service provision agreement shall not

 

advertise the property to the public as "for sale by owner" or

 

otherwise mislead the public to believe that the seller is not

 

represented by a real estate broker.

 

     (5) The services described in subsection (3)(b), (c), and (d)

 

may be waived in a limited service agreement.

 

     Sec. 2512e. (1) Except as provided in subsection (2), any

 

advertisement to buy, sell, exchange, rent, lease, or mortgage real

 

property or a business opportunity by a real estate broker shall

 

include the broker's name as it appears on the broker's license;

 

shall include the broker's telephone number or street address; and

 

shall state that the person doing the advertising is a real estate

 

broker.

 

     (2) An individual who is licensed as a real estate broker or

 

associate real estate broker may advertise real property that he or

 

she personally owns for sale or for lease in his or her own name,

 

and is not required to include the name of the real estate broker,

 

or the name of the real estate broker that employs the associate

 

real estate broker, as the sales or leasing agent for the property

 

in the advertisement. However, the advertising shall indicate

 

affirmatively that the individual who is selling or leasing the

 

real property is a licensed real estate broker or associate real

 

estate broker.

 

     (3) Except as provided in subsection (2) or (4), a real estate

 

salesperson or an associate real estate broker shall only advertise

 

to buy, sell, exchange, rent, lease, or mortgage real property or a

 

business opportunity under the supervision of, and in the licensed

 

name of, the real estate broker that employs him or her.

 

     (4) A real estate salesperson may only advertise to sell real

 

property under his or her own name if the property is the principal

 

residence of the salesperson. A real estate salesperson may only

 

advertise real property for rent or lease under his or her own name

 

if the salesperson is the owner of the property.

 

     (5) A real estate broker shall not conduct business or

 

advertise under a name other than that in which the broker's

 

license is issued. A real estate broker that intends to operate

 

under an assumed name shall send to the department, with the

 

application for a real estate broker license, a copy of a

 

certificate of assumed name that is filed with this state or a

 

clerk of the county, as required by law.

 

     Sec. 2512f. (1) A real estate broker or associate real estate

 

broker shall supervise the work of a real estate salesperson. For

 

purposes of this subsection, supervision of a real estate

 

salesperson includes at least all of the following:

 

     (a) Direct communication in person or by radio, telephone, or

 

electronic communication, on a regular basis.

 

     (b) Review of the practice of the salesperson.

 

     (c) Review of the salesperson's reports.

 

     (d) Analyses and guidance of the salesperson's performance in

 

regulated activities.

 

     (e) Providing written operating policies and procedures to the

 

salesperson.

 

     (2) A real estate broker shall not contract with an individual

 

real estate salesperson or nonprincipal associate real estate

 

broker who is employed by the real estate broker in a manner that

 

limits the broker's authority to supervise the salesperson under

 

subsection (1).

 

     Sec. 2516. (1) If a licensee buys or otherwise acquires,

 

directly or indirectly, an interest in real property, the licensee

 

shall disclose the licensee's licensure as a real estate broker,

 

associate real estate broker, or real estate salesperson clearly,

 

in writing, to the owner of the property before the owner is asked

 

to sign the purchase agreement.

 

     (2) If a licensee acquires, directly or indirectly, an option

 

to purchase real property from an owner that requested the

 

licensee's services as a real estate licensee in connection with

 

that property, the licensee shall disclose the licensee's licensure

 

as a real estate broker, associate real estate broker, or real

 

estate salesperson, in writing, to the owner before the owner is

 

asked to sign the option agreement.

 

     (3) A licensee that buys or otherwise acquires an interest in

 

real property, directly or indirectly, and that is owed a

 

commission, fee, or other valuable consideration as a result of the

 

sale, shall obtain the written permission from the seller or owner

 

to receive the specified consideration.

 

     (4) On request of the department, a licensee shall provide

 

written proof of any disclosures and consents required under this

 

section to the department.

 

     Sec. 2516a. A licensee shall provide for inspection, by an

 

authorized representative of the department, of any document or

 

record that the department determines is reasonably necessary for

 

an investigation of the licensee or the business activities of the

 

licensee, the administration of this act, or the administrative

 

rules promulgated under this article.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2015.