Thursday, April 24, 2008

Does the broker notify the Department of Real Estate upon the hiring and termination of salespersons?

Correct Procedure:

Whenever a real estate salesperson enters the employ of a broker, the broker shall notify the commissioner of that fact within five days. This notification shall be given on a form prepared by the Department and shall be signed by the broker and the salesperson. The form of notification shall provide at least the following information:

1. Name and business address of the broker.

2. Mailing address of the salesperson, if different from the business address.

3. Date when the salesperson entered the employ of the broker.

4. Certification by the salesperson that he/she has complied with the provisions of Section 10161.8(d) of the Business & Professions Code.

5. Name and business address of the real estate broker to whom salesperson was last licensed and the date of termination of that relationship.

6. Certification by the salesperson that the predecessor broker has notice of the termination of the relationship.

As an acceptable alternative to 5 and 6 above, the form may be utilized by the predecessor broker to give notice of the termination of the broker/salesperson relationship as required by Section 10161.8(b) of the Business & Professions Code if this notice is mailed to the commissioner not more than ten days following such termination.

Reference:
Real Estate Law Book, Section 10161.8; Regulation 2752

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