230 R.I. Code R. 230-RICR-30-20-2.4

Current through December 3, 2024

Section 230-RICR-30-20-2.4 - Principal Brokers and Brokerages

A. The principal broker shall act in a supervisory capacity for every real estate transaction in which an affiliated licensee participates.

B. The principal broker shall be responsible for the compliance of his or her affiliated licensees with the Rhode Island General Laws pertaining to real estate licensure and this Regulation.

C. The principal broker shall be responsible for the compliance of his or her non-licensed employees with the Rhode Island General Laws pertaining to real estate licensure and this Regulation.

D. The principal broker shall maintain an escrow account for the funds of others and shall make certain that no funds of others are disbursed or utilized without his or her express authorization and knowledge.

E. The principal broker shall assume responsibility for:

1. The adequate supervision of each affiliated licensee and each office of the brokerage at which real estate activities requiring licensure are conducted;

2. The filing of any change of business address or trade name of the brokerage and the registration of any assumed business name adopted by the brokerage for its use with the Department;

3. The notification in writing of any change of his or her status as principal broker to the Department within ten (10) days following the change;

4. The proper display of all licenses;

5. The verification that each licensee affiliated with the brokerage has a license in good standing with the Department at the beginning of each renewal term;

6. The proper retention and maintenance of records relating to transactions conducted by or on behalf of the brokerage at such office;

7. The preservation and safekeeping of the transaction and escrow account records upon termination of his or her status as principal broker until a new principal broker has been designated; and

8. All real estate activities of teams under his or her supervision including but not limited to maintaining the brokerage escrow account, approving team management agreements, approving team names and logos, monitoring of team advertising, keeping current lists of team members and all other functions relating to adequate supervision of team licensees.

F. If a principal broker, in his or her capacity as an insurance licensee of the Department, is authorized to place or procure insurance on the property being sold in a contract provided by the principal broker, he or she shall obtain written reaffirmation of such provision by the prospective insured within five (5) days prior to the closing of title.

230 R.I. Code R. 230-RICR-30-20-2.4

Amended effective 11/27/2019
Amended effective 5/1/2021
Amended effective 2/21/2022