Wednesday, December 23, 2015

Real Estate Commission Rules as of 12/1/15

November 27, 2015
Dear Approved Course Providers:
The new rules for the Real Estate profession go into effect on December 1, 2015.  We are writing to remind you to please update all courses to reflect the new rule changes.
A copy of the new rules can be found at the following link:  Real Estate Commission Rules as of 12/1/15  We encourage you to read the full document as there are substantive changes that need to be addressed in your courses. 
Please pay particular attention to the addition of designated agency (Rule 4.4) and non-designated agency (Rule 4.3).  Beginning December 1, 2015, a brokerage firm is a non-designated agency firm until and unless the principal broker elects to practice designated agency.  The choice to remain a non-designated agency brokerage firm or to change to a designated agency brokerage firm is a choice that applies to the entire brokerage firm, branch offices, and all licensees.  Licensees within a brokerage firm cannot practice both types of agency when working with clients.  Licensees will need to discuss with their principal broker which form of agency they will be offering clients going forward.  With the changes to the rules, limited agency is no longer an option for resolving conflicts among two of the firm’s clients wishing to participate in the same transaction.  New requirements are also in effect for brokerage service agreements.
Beginning December 1, 2015, licensees must use one of the two mandatory consumer disclosure forms adopted by the Commission.  The new mandatory consumer disclosure forms are located at the following link:  Mandatory Disclosure Forms  There is a form for brokerage firms practicing non-designated agency and a form for firms practicing designated agency.  The forms adopted by the Commission cannot be modified or branded. 
The addition of the initial salesperson post-licensure eight hour education requirement went into effect in 2014 and is further described in Rule 5.2(a).  The continuing education requirements for brokers also changed in 2014 from sixteen hours every two years to twenty-four hours.
The Real Estate Commission will be providing Frequently Asked Questions (FAQs) regarding the new rules on the Commission’s website.
If you have any questions, please email Judith.Griffen@sec.state.vt.us.
Regards,
Judith Griffen

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