Managing Broker License
Managing Broker License - In order to supervise the activities of other licensees, an individual must hold a managing broker's license. This includes:
Managing broker means a natural person acting on behalf of a real estate firm to perform real estate brokerage services under the supervision of the designated broker, and who may supervise other brokers or managing brokers licensed to the firm. The only licensee that can supervise other brokers is a person who holds a managing broker license. This licensee must also be under the supervision of the designated broker for the firm and in some cases is also the designated broker of the firm.
Managing broker responsibilities include, but are not limited to:
(1) Assuring all real estate brokerage services in which he/she participated are in accordance with chapters 18.85, 18.86, 18.235 RCW and the rules promulgated thereunder.
(2) Cooperating with the department in an investigation, audit or licensing matter.
(3) Being knowledgeable of chapters 18.85, 18.86, and 18.235 RCW and their related rules.
(4) Keeping the real estate program informed of his or her current mailing address.
(5) Following the designated broker's written policy on referral of home inspectors.
(6) Being appropriately licensed.
(7) Delivering transaction documents and brokerage service contracts to designated broker or delegated managing broker within two business days of mutual acceptance.
(8) Following licensing laws and rules regarding:
(a) Safe handling of customer/client funds and property.
(b) Timely delivery of customer/client funds or property.
(c) Proper and legal advertising.
(d) Modifying or terminating brokerage service contract on behalf of the firm.
Training Supervisor - Some major firms will actually put a managing broker on salary to do nothing but train and supervise new brokers. Some firms have educational directors who are in charge of training programs and who do not supervise sales activities. The problem is that it is a thin line regarding interpretation of supervising and training. This is especially true when under investigation by the DOL and licensing procedures. The State has the interpretive power regarding any supervisory activities and its rulings are binding on the firm. Therefore, it is best that the educational director holds a managing broker's license.
Selling and Supervising - Most firms allow their managing brokers to sell as well as to supervise assigned training activities. The sales by a managing broker are basically in the same category as a broker in that of managing broker is an agent of the firm and the designated broker.
Branch Manager - As stated earlier, any branch manager appointed by a firm must hold a managing broker's license. The firm must notify the Department of Licensing regarding which managing broker is in charge of a specific branch. Any changes in status of the branch manager must be immediately communicated to the Department.
Display of Licenses - Each branch office that is established by a firm must have the licenses of all the affiliates including the branch manager's managing brokers license posted to public view. Any movement by affiliates from one branch to another must cause immediate notification to the Department of Licensing. Appropriate changes to licenses must be accomplished in an expedient manner.
Mailed In - Any affiliate that leaves a firm requires the firm to mail in that affiliate licensees license to the Department of Licensing (DOL). This is required because the DOL doesn't want a licensee to be practicing without any supervision from the designated broker for the firm.
Fiduciary Capacity: The relationship of utmost good faith and loyalty that an agent owes to their principal.
This definition is rather simplistic in nature but this is a definition that the State follows in applying actions of some agents towards their principal. Don't forget, in regulating actions of brokers the State interprets what is considered loyalty and good faith towards a client.
Golden Rule - -Do unto others as you would have others do unto you-. Basically speaking, the actions that you take on behalf of a client should be the same actions you would expect if you were a principal in a real estate transaction.
State Action - If an investigator for the Department of Licensing says that your actions were not in your client's best interest, but in your best interest, disciplinary action shall be taken by the DOL. This could be pursued under the 'loyalty' statutory rule by the State. This regulation established by the State under RCWs (State Laws/Statutes) is somewhat vague regarding the interpretation. This is purposefully so because the State has the power to interpret on a case-by-case basis.
Appeal a Ruling - If an investigator makes an interpretation that is against your interests, you do have the right to appeal to the Director regarding the investigator's decision. But in the meantime, you are guilty until proven innocent. Therefore, it is best to take actions that are in your client's best interest and to document your actions on a regular basis.
If an affiliate has a question on a procedure where can they find the answer?
A) procedure manual
B) another affiliate
C) call the office staff
D) wait until the managing broker is available
What license must a designated broker hold?
A) designated broker's license
B) managing broker's license
C) broker's license
D) no license is required
The relationship of utmost good faith and loyalty an agent owes to the principal is:
A) fiduciary capacity
B) supervisory role
C) franchise ruling
CLICK HERE FOR REVIEW QUESTIONS AND ANSWERS (45493)
The study of system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties.