September 20, 2006, Introduced by Rep. Hildenbrand and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2501, 2502a, 2503, 2504, 2505, 2506, 2507,
2512, 2512c, and 2514 (MCL 339.2501, 339.2502a, 339.2503, 339.2504,
339.2505, 339.2506, 339.2507, 339.2512, 339.2512c, and 339.2514),
sections 2501, 2504, and 2505 as amended by 2003 PA 196, section
2502a as added by 2002 PA 611, section 2503 as amended by 1990 PA
269, sections 2506 and 2507 as amended by 1988 PA 463, section 2512
as amended by 2002 PA 42, and section 2512c as added by 1994 PA
333.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2501. As used in this article:
(a) "Employ" or "employment" means the relationship between an
individual licensed under a real estate broker and that real estate
broker, 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 not relieve the real estate broker of the
responsibility to supervise acts of the licensee regulated by this
article.
(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 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.
(c) "Leasing professional" means a person who for compensation
or other valuable consideration is employed either directly or
indirectly by a licensed real estate broker to lease, or offer to
lease, or rent, or offer to rent, or to engage in property
management regarding real property consisting of 1 or more dwelling
units.
(d) "Negotiate the mortgage of real estate" means engaging in
activity not regulated by the mortgage brokers, lenders, and
servicers licensing act, 1987 PA 173, MCL 445.1651 to 445.1684.
(e) (a)
"Property management" means the
leasing or renting,
or
the offering to lease or rent, of any
of the following
activities undertaken, as a whole or partial vocation, regarding
real property of others and that are performed for a fee,
commission, compensation, or other valuable consideration pursuant
to
a property management employment contract: .
(i) Advertising and promotion.
(ii) Leasing.
(iii) Overall management.
(iv) Supervision of the activities described in subparagraphs
(i) through (iii).
(f) (b)
"Property management account" means an
interest-
bearing or noninterest-bearing account or instrument used in the
operation of property management.
(g) (c)
"Property management employment contract"
means the
written agreement 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 the real estate broker's
duties, responsibilities, and activities as a property manager; and
setting forth the handling, management, safekeeping, investment,
disbursement, and use of property management money, funds, and
accounts.
(h) (d)
"Real estate broker" means an individual, sole
proprietorship, partnership, association, corporation, common law
trust, or a combination of those entities who 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, lists or offers or attempts to list, or
negotiates the purchase or sale or exchange or mortgage of real
estate, or negotiates for the construction of a building on real
estate; who 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 engages in property management as a
whole or partial vocation; 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; or who, as
owner or otherwise, engages in the sale of real estate as a
principal vocation.
(i) (e)
"Real estate salesperson" means a person
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, 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 for the construction of a building on real estate, or to
lease or offer to lease, 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.
(f)
"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 not relieve the real
estate
broker of the responsibility to supervise acts of the
licensee
regulated by this article.
(g)
"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 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.
(j) (h)
"Professional designation" means a
certification
from a real estate professional association demonstrating
attainment of 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 by the certifying entity.
Sec.
2502a. Beginning November 1, 2003, the The department
shall issue a license for real estate broker, associate real estate
broker, leasing professional, and real estate salesperson for a
term of 3 years.
Sec. 2503. (1) A person shall not engage in or offer to engage
in any of the following unless licensed in the appropriate capacity
or exempt from licensure under this article:
(a) Act as a real estate broker or associate broker.
(b) Act as a real estate salesperson.
(c) Act as a leasing professional.
(d) Engage in property management.
(2)
(1) This The licensure requirements of this article
shall
do not apply to
an the following:
(a) An individual, partnership, association, or corporation,
who as owner, sells or offers for sale a detached, single family
dwelling, duplex, triplex, or quadruplex, which has never been
occupied
and which was built by the individual, partnership,
association,
or corporation while licensed under article 24. This
article
does not apply to an
(b) An individual, partnership, association, or corporation,
who as owner or lessor or as attorney-in-fact acting under a duly
executed and recorded power of attorney from the owner or lessor,
or who has been appointed by a court, 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.
(c) (2)
This article shall not include the services rendered
by
an attorney at law as an An attorney at law , nor shall it
include
a performing legal services
pertaining to the sale, lease,
or purchase of real estate or an interest in real estate for a
client.
(d) A receiver, trustee in bankruptcy, administrator,
executor,
or a person selling real estate under order of a court.
,
nor a
(e) A trustee selling under a deed of trust. This exemption of
a trustee shall not apply to repeated or successive sales of real
estate by the trustee, unless the sale is made through a licensed
real estate broker.
(f) (3)
This article does not apply to a A
person who 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, and
1987 PA 173, MCL 445.1651 to 445.1684, who does not perform any
other act requiring a license as a real estate broker, associate
broker, leasing professional, 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.
(g) An individual employed by or acting as an independent
contractor for a broker, salesperson, or leasing professional,
whose activities are limited to 1 or more of the following:
(i) Delivery to another person of a lease application, a lease,
or any amendment to a lease.
(ii) Receiving a lease application, lease, or any amendment to
a lease; a security deposit; rental payment; or any related payment
for delivery to a property manager or owner.
(iii) Showing a rental unit to any person or providing
information regarding a rental unit, lease, application for lease,
or the status of a security deposit or the payment of rent.
(iv) Assisting in the performance of property management
functions by engaging in administrative, clerical, or maintenance
tasks.
(3) An individual licensed as a leasing professional is
restricted to activities within the scope of practice of property
management and is prohibited from engaging in activities within the
scope of practice of a real estate broker or a real estate
salesperson.
Sec. 2504. (1) Before receiving a real estate broker's
license, an applicant shall submit an application as described in
section 2505 and shall have successfully completed not less than 90
clock hours of approved classroom courses in real estate of which
not less than 9 clock hours shall be instruction on civil rights
law and equal opportunity in housing. The 90 hours shall be in
addition to the hours required to obtain a real estate
salesperson's license.
(2) Before being permitted to take the real estate
salesperson's examination, an applicant shall show proof of
successful completion of not less than 40 clock hours of classroom
courses in principles of real estate, of which not less than 4
clock hours shall be instruction on civil rights law and equal
opportunity in housing.
(3) Before being permitted to take the leasing professional's
examination, an applicant shall show proof of successful completion
of not less than 40 clock hours of classroom courses in property
management acceptable to the board and the department. For purposes
of this subsection, approved courses include, but are not limited
to, the following topics:
(a) The provisions of this act applicable to leasing
professionals.
(b) Fair housing issues relating to residential leasing.
(c) Advertising and marketing issues.
(d) Leases, applications, and credit reports.
(e) Owner-tenant relationships and owner-tenant laws.
(f) The handling of property management funds.
(g) Michigan laws relating to security deposits and tenant
rights.
(h) Leasing office management and model apartments.
(4) (3)
For purposes of subsections (1) and (2), approved
courses may be on the following topics:
(a) Real estate license law and related regulatory laws.
(b) Real property law, including property interests and
restrictions.
(c) Federal, state, and local tax laws affecting real
property.
(d) Conveyances, including contracts, deeds, and leases.
(e) Financing, including mortgages, land contracts,
foreclosure, and limits on lending procedures and interest rates.
(f) Appraisal of real property.
(g) Design and construction.
(h) Marketing, exchanging, and counseling.
(i) The law of agency.
(j) Sales and office management, including listing and selling
techniques.
(k) Real estate securities and syndications.
(l) Investments, including property management.
(5) (4)
Except as otherwise provided in this subsection,
before
being permitted to renew an active real estate broker's, or
real estate salesperson's, or leasing professional's license, a
licensee shall have successfully completed, within the preceding 12
months, not less than 6 clock hours of continuing education
approved by the department involving any topics relevant to the
management, operation, and practice of real estate and covering
changes in economic conditions, law, rules, court cases, and
interpretations, or any combination of those changes, relating to
real property which are pertinent to the activities of a real
estate
broker, or real estate salesperson, or leasing
professional. Beginning November 1, 2003, a licensee shall complete
not less than 18 hours of continuing education per 3-year license
cycle. A licensee shall complete at least 6 hours of the required
18 hours of continuing education courses during the time period
from November 1, 2003 and ending on December 31, 2004. During
calendar year 2005, a licensee shall complete at least 6 hours of
the required 18 hours of continuing education courses. During
calendar year 2006, a licensee shall complete at least 4 hours of
the required 18 hours of continuing education courses. During
calendar year 2007 and thereafter, a licensee shall complete at
least 2 hours per calendar year of the required 18 hours of
continuing education courses. Any education successfully completed
by a licensee for further professional designation and approved by
the department as continuing education may be counted toward the
total continuing education credits required for the 3-year license
cycle. Each licensee, in completing the appropriate number of clock
hours, will have the option of selecting the education courses in
that licensee's area of expertise, as long as the education courses
are approved by the department and as long as at least 2 hours of
an education course per calendar year involve law, rules, and court
cases regarding real estate. Notwithstanding the provisions of this
subsection, the department may renew the license of a licensee who
has completed not less than 18 hours of continuing education in the
subject matter areas required by this subsection during the 3-year
license cycle but has not otherwise met the requirements of this
section if the licensee provides evidence satisfactory to the
department that he or she has good cause for not complying with the
requirements in this subsection.
(6) (5)
The department may relicense without examination a
licensee whose license has lapsed for less than 3 years if the
licensee shows proof of completion of not less than 6 clock hours
of continuing education for each year the license was lapsed, on
topics
as described in subsection (4) (5).
(7) (6)
The department may relicense a broker whose license
has lapsed for 3 or more continuous years if the licensee provides
proof of the successful completion of 1 of the following:
(a) Six clock hours of continuing education for each of the
years
the license was lapsed on topics described in subsection (4)
(5).
(b) Ninety clock hours of instruction described in subsections
(1)
and (3) (4).
(c) Passing the examination required for licensure as a broker
as provided for in section 2505(5).
(8) (7)
A salesperson or leasing professional whose
license
has been lapsed for 3 or more continuous years may be relicensed if
the licensee provides proof of the successful completion of 1 of
the following:
(a) Six clock hours of continuing education for each of the
years
the license was lapsed on topics described in subsection (4)
(5).
(b)
Forty clock hours of instruction described in subsections
subsection
(2) and or (3) and subsection (4).
(c) Passing the examination required for licensure as a
salesperson or leasing professional as provided in section 2505(5).
(9) (8)
The department shall not apply the course credits
used to meet continuing education requirements provided in
subsections (4)
(5) through
(7) (8) towards
the real estate
broker's license education requirements provided in subsection (1),
and course credits taken under real estate broker's license
education requirements shall not be applied towards the continuing
education requirements. The department shall apportion the approved
course credits eligible for education requirements in subsection
(1)
and subsections (4) (5)
through (7) (8) to
meet either
requirement upon the licensee's request.
(10) (9)
For real estate brokers, associate brokers, leasing
professionals, and salespersons who receive a license issued in the
second or third years of a 3-year license cycle, continuing
education
shall be in compliance with subsection
(4) (5),
except
for the following:
(a) A real estate broker, associate broker, leasing
professional, 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 to renew his or her license.
(b) A real estate broker, associate broker, leasing
professional, or salesperson who receives a license issued in the
third year of the 3-year licensing cycle is required to complete 6
hours of continuing education to renew his or her license.
(11) (10)
A person who offers or conducts a course or
courses of study represented to meet the educational requirements
of this article first shall obtain approval from the department and
shall comply with the rules of the department concerning
curriculum, instructor qualification, grading system, and other
related matters. In addition to other requirements imposed under
rule, in order to receive approval a course shall be designed to be
taught for not less than 1 clock hour, not including time spent on
breaks, meals, or other unrelated activities, provided the course
is only approved for less than 2 clock hours if, based upon the
subject matter, course outline, instructional materials,
methodology, and other considerations consistent with rules of the
department, the department determines that the course objectives
can be effectively met in the proposed time period. The department
may suspend or revoke the approval of a person for a violation of
this article or of the rules promulgated under this article. A
person offering or conducting 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 is a recommendation or indorsement of the
person to which it is issued or of a course of instruction given by
it. A pre-licensure course approved under this article 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 of career
development
under 1943 PA 148, MCL 395.101 to 395.103.
(12) (11)
A person who in operating a school violates
subsection (10)
(11) is subject to the penalties set forth in
article 6.
(13) (12)
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 within 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. 2505. (1) An applicant for a real estate broker's license
shall file an application setting forth the applicant's present
address, both of business and residence; the complete address of
each former place where the applicant has resided or been 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 the name of the individual, sole proprietorship,
partnership, association, corporation, limited liability company,
common law trust, or a combination of those entities and the
location of the place for which the license is desired, and set
forth the period of time 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 shall designate which individuals who
are officers or members of the partnership, association, limited
liability company, or corporation will be performing acts regulated
by this article as principals.
(2) The department shall not issue a real estate broker's
license to a new applicant who has been convicted of embezzlement
or misappropriation of funds.
(3) A real estate broker shall maintain a place of business in
this state. If a real estate broker maintains more than 1 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 25 miles from the city limits
in which the broker maintains a main office shall be under the
personal, direct supervision of an associate broker.
(4) An applicant for a salesperson's or leasing professional's
license shall set forth 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 the applicant or in whose employ the
applicant is to enter. The application shall be signed by the real
estate broker in whose employ the applicant is to enter.
(5) Before issuing a license, the department may require and
procure satisfactory proof of the business experience, competence,
and good moral character of an applicant for a real estate
broker's, leasing professional's, or salesperson's license or of an
officer or member of an applicant. The department shall require an
applicant for a real estate broker's, leasing professional's, or
salesperson's license to pass an examination developed by the
department or contracted for with a recognized outside testing
agency establishing, in a manner satisfactory to the department,
that the applicant 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, leasing
professionals, and salespersons. The department may require written
examination or written reexamination of a real estate broker,
leasing professional, or real estate salesperson, and in that case
a passing score satisfactory to the department is required as a
condition precedent to relicensure of a real estate broker, leasing
professional, or real estate salesperson. The department shall
require proof that each applicant for a real estate broker's
license 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.
Sec. 2506. (1) The license of a real estate salesperson and
leasing professional shall be delivered or mailed to the real
estate broker by whom the real estate salesperson or leasing
professional is employed and shall be kept in the custody and
control of the real estate broker. A real estate broker shall
conspicuously display the real estate broker's license and the
license of each real estate salesperson and leasing professional
employed by the real estate broker in the real estate broker's
place of business. Written notice shall be given to the department
by a licensee of a change of either a principal or branch business
location.
(2) If the department determines that it will be unable to
issue a real estate salesperson's or leasing professional's license
under subsection (1) within 2 weeks after the department determines
that the applicant for a real estate salesperson's or leasing
professional's license has met all requirements for licensure, or
the department is in fact unable to issue the real estate
salesperson's or leasing professional's license within 2 weeks, the
department shall issue to the applicant, without payment of an
additional fee, a temporary license pursuant to section 213.
Sec. 2507. If a real estate salesperson or leasing
professional is discharged or terminates employment with a real
estate broker by giving the employer a written notice of the
termination, the real estate broker shall deliver or mail by
certified mail to the department, within 5 days, the real estate
salesperson's or leasing professional's license. If a written
notice of termination of employment is not served upon the real
estate broker by the real estate salesperson or leasing
professional, an application to the department for a transfer of
license by the real estate salesperson or leasing professional
shall be communicated in writing by the department to the real
estate broker. As of the date of the communication, the notice
shall operate as if a written notice were served by the real estate
salesperson or leasing professional upon the real estate broker.
The real estate broker, at the time of mailing the real estate
salesperson's or leasing professional's license to the department,
shall address a communication to the last known residence address
of the real estate salesperson or leasing professional, which
communication shall advise the real estate salesperson or leasing
professional that the license has been delivered or mailed to the
department. A copy of the communication to the real estate
salesperson or leasing professional shall accompany the license
when mailed or delivered to the department. A real estate
salesperson or leasing professional shall not perform an act
regulated by this article either directly or indirectly under
authority of the license after the date of the department's receipt
of the license from a real estate broker. Another license shall not
be issued to a real estate salesperson or leasing professional
until the person returns the former pocket card to the department
or satisfactorily accounts to the department for the pocket card.
Not more than 1 license shall be issued to a real estate
salesperson or leasing professional for the same period of time.
Sec. 2512. A licensee who 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 or attempts to represent a real estate broker
other than the employer without the express knowledge and consent
of the employer.
(d) Fails to account for or to remit money coming into the
licensee's possession which belongs to others.
(e) Changes a business location without notification to the
department.
(f) In the case of a real estate broker, fails to return a
real estate salesperson's or leasing professional's license within
5 days as provided in section 2507.
(g) In the case of a licensee engaged in property management,
violates section 2512c(2), (5), or (6).
(h) Except as provided in section 2512b, shares or pays a fee,
commission, or other valuable consideration to a person not
licensed under this article including payment to any person
providing the names of, or any other information regarding, a
potential seller or purchaser of real estate but excluding payment
for the purchase of commercially prepared lists of names. However,
a licensed real estate broker may pay a commission to a licensed
real estate broker of 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
with section 2601(a)(ii).
(j) Except in the case of property management accounts, fails
to deposit in the real estate broker's custodial trust or escrow
account money belonging to others coming into the hands of the
licensee in compliance with the following:
(i) A real estate broker shall retain a deposit or other money
made payable to a person, partnership, corporation, or association
holding 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 to the real
estate broker, upon receipt, a deposit or other money on a
transaction in which the real estate salesperson is engaged on
behalf of the real estate broker.
(iii) A real estate broker shall not permit an advance payment
of funds belonging to others to be deposited in the real estate
broker's business or personal account or to be commingled with
funds on deposit belonging 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 to others 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 deposited
in its custodial trust or escrow account, which 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 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 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, a licensee in possession of such a deposit shall
cause the deposit to be delivered to the named escrowee within 2
banking days after the licensee has received notice that an offer
to purchase is accepted by all parties.
Sec. 2512c. (1) Except as otherwise provided in this section,
all property management duties, responsibilities, and activities
performed
by a real estate broker and his or her agent engaged in
property
management leasing
professional shall be governed by and
performed in accordance with a property management employment
contract.
(2) A real estate broker who engages in property management
shall maintain property management accounts separate from all other
accounts. Except as provided in this section, a property management
account shall be managed in accordance with the property management
employment contract.
(3) A property management account may be an interest-bearing
account or instrument, unless the property management employment
contract provides to the contrary. The interest earned on a
property management account shall be handled in accordance with the
property management employment contract.
(4)
A real estate broker or any designated employee of the
real
estate broker engaged in property management or leasing
professional may be signatory on drafts or checks drawn on property
management accounts.
(5) A person who engages in property management shall maintain
records of funds deposited and withdrawn from property management
accounts. Property management account records shall indicate the
date of the transaction, from whom the money was received or to
whom it was given, and other pertinent information concerning the
transaction the property management employment contract may
require.
(6) A real estate broker engaged in property management shall
render an accounting to his or her property management client and
remit all money strictly in accordance with the property management
employment contract.
(7) All records required to be kept pursuant to this section
or pursuant to the property management employment contract shall be
subject to inspection by the department.
Sec. 2514. A nonresident of this state may become a real
estate broker, a leasing professional, or a real estate salesperson
by conforming to the requirements of this article. A nonresident
applicant shall file an irrevocable consent that an action may be
commenced against the applicant in the proper court of a county of
this state in which a cause of action may arise in which the
plaintiff may reside, by the service of process or pleading
authorized by the laws of this state on the department, the consent
stipulating and agreeing that service of process or pleadings on
the department shall be taken and held in court to be as valid and
binding as if due service had been made upon the applicant in this
state. An instrument containing a consent shall be authenticated by
a seal, if a corporation, or by the acknowledged signature of a
member or officer of the corporation, if otherwise. An application,
except from an individual, shall be accompanied by the certified
copy of the resolution of the proper officer or managing board
authorizing the proper officer to execute the application. If a
process or pleading mentioned in this article is served upon the
department it shall be by duplicate copies, 1 of which shall be
filed in the department and the other immediately forwarded by
registered mail to the main office of the applicant against which
the process or pleading is directed.