Kan. Admin. Regs. § 86-3-31

Current through Register Vol. 43, No. 49, December 5, 2024

Section 86-3-31 - Broker supervision

(a) Failure of a supervising broker or branch broker to properly supervise the activities of an associated or employed salesperson or associate broker shall include the following:

(1) Allowing a person not licensed by the commission to engage in activities requiring a license on behalf of the broker or brokerage firm, unless the person is exempt from licensure pursuant to K.S.A. 58-3037, and amendments thereto;

(2) allowing an associated or employed salesperson or associate broker to engage in dual agency or activities requiring an active real estate license while that salesperson's or associate broker's license is expired, inactive, pending transfer, suspended, or revoked;

(3) failure to take action to ensure that an associated or employed salesperson or associate broker complies with any restrictions or conditions placed upon that salesperson's or associate broker's license;

(4) directing or instructing an associated or employed salesperson or associate broker to take any action in violation of the real estate brokers' and salespersons' license act, the brokerage relationships in real estate transactions act, or any commission regulations;

(5) failing to take action to prevent an associated or employed salesperson or associate broker from taking any action in violation of the real estate brokers' and salespersons' license act, the brokerage relationships in real estate transactions act, or any commission regulations, if the supervising broker or branch broker has actual knowledge of the impending violation;

(6) failing to timely take action to correct or mitigate a violation of the real estate brokers' and salespersons' license act, the brokerage relationships in real estate transactions act, or any commission regulations by an associated or employed salesperson or associate broker, if the supervising broker or branch broker has actual knowledge of the violation;

(7) failing to ensure that all contracts and forms used by an associated or employed salesperson or associate broker are reviewed for accuracy and compliance with applicable statutes, regulations, and office policies;

(8) failing to ensure that all advertising by associated or employed salespersons or associate brokers complies with applicable statutes, regulations, and office policies; and

(9) failing to ensure that all associated or employed salespersons and associate brokers are able to maintain reasonable and timely communication with the supervising broker, branch broker, or a competent designee.

(b) Any of the following may be considered mitigating factors regarding an alleged violation of subsection (a):

(1) The supervising broker or branch broker has implemented policies and procedures to prevent an associated or employed salesperson or associate broker from violating a restriction or condition placed upon the license or from committing a violation of the real estate brokers' and salespersons' license act, the brokerage relationships in real estate transactions act, or any commission regulations, as demonstrated by both of the following:

(A) The supervising broker or branch broker has written policies and procedures in place to provide guidance in real estate practice law to the associated or employed salesperson or associate broker.

(B) The supervising broker or branch broker demonstrates that the associated or employed salesperson or associate broker received training on the written policies and procedures specified in paragraph (b)(1)(A).

(2) The supervising broker or branch broker provides access to either of the following:

(A) Ongoing training or education sessions for associated or employed salespersons or associate brokers; or

(B) experienced personnel to review the accuracy of documents and discuss real estate practice law with associated or employed salespersons or associate brokers.

(3) The supervising broker has systems in place to ensure proper management and control of documents and records relating to licensing requirements and transactions.

(c) Any of the following may be considered aggravating factors with respect to an alleged violation of subsection (a):

(1) The commission has previously disciplined the supervising broker or branch broker for failure to properly supervise associated or employed salespersons or associate brokers.

(2) The supervising broker or branch broker did not have policies and procedures in place as described in paragraph (b)(1)(A) at the time of the violation.

(3) The supervising broker or branch broker is unable to demonstrate that the associated or employed salesperson or associate broker who committed the violation received adequate training on applicable statutory, regulatory, and office policy requirements.

(d) Nothing in this regulation shall prohibit a broker from delegating supervisory duties to competent personnel or affiliated licensees. The supervising broker or branch broker shall be responsible for ensuring compliance with commission statutes and regulations by all personnel and affiliated licensees under the supervising broker's or branch broker's supervision.

Kan. Admin. Regs. § 86-3-31

Authorized by K.S.A. 2015 Supp. 74-4202; implementing K.S.A. 2015 Supp. 58-3062; adopted by Kansas Register Volume 35, No. 43; effective 11/14/2016.