What is a Manager?
Regardless of what we call a “person in charge” of a Real Estate Brokerage, we have to be careful of what the perception is. I am frequently getting questions about who can be in charge of an office. Typically these questions come about when a REALTOR® feels that someone less qualified than they are, ascends the thrown of the office. Although I only spent about three years managing, I can tell you that its not treat to sit on the throne. However, there are those who desire to be in charge of an office and as a manager they must do certain things. A large part of that is the day to day oversight of production, giving advice to the agents in the company, training, mentoring, coaching and generally being responsible for the actions or in-actions of a licensee. Unfortunately there are too many folks becoming the manager, team leader, Assistant Broker, Sales Manager, etc… and not having a Broker’s License. Call it what you will, but if an agent is overseeing company practices, they are managing.
Who Says?!?!
I am not an attorney, but I think that the Virginia Administrative Code and the Statutes both are clear. Here is what 18 VAC 135-20-160 says:
C. Every principal broker shall have readily available to the public in the main place of business the firm license, the principal broker license and the license of every salesperson and broker active with the firm. The branch office license and a roster of every salesperson or broker assigned to the branch office shall be posted in a conspicuous place in each branch office.
D. Each place of business and each branch office shall be supervised by a supervising broker. The supervising broker shall exercise reasonable and adequate supervision of the provision of real estate brokerage services by associate brokers and salespersons assigned to the branch office. The supervising broker may designate another broker to assist in administering the provisions of this subsection. The supervising broker does not relinquish overall responsibility for the supervision of the acts of all licensees assigned to the branch office. Factors to be considered in determining whether the supervision is reasonable and adequate include, but are not limited to, the following:
1. The availability of the supervising broker to all licensees under the supervision of the broker to review and approve all documents including but not limited to leases, contracts affecting the firms clients, brokerage agreements and advertising;
2. The availability of training and written procedures and policies which provide, without limitation, clear guidance in the following areas:
a. Proper handling of escrow deposits;
b. Compliance with federal and state fair housing laws and regulations if the firm engages in residential brokerage, residential leasing, or residential property management;
c. Advertising;
d. Negotiating and drafting of contracts, leases and brokerage agreements;
e. Use of unlicensed individuals;
f. Agency relationships;
g. Distribution of information on new or changed statutory or regulatory requirements;
h. Disclosure of matters relating to the condition of the property.
i. Such other matters as necessary to assure the competence of
3. The availability of the supervising broker in a timely manner to supervise the management of the brokerage services;
4. The supervising broker ensures the brokerage services are carried out competently and in accordance with the provisions of this chapter and
5. The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office;
6. If a supervising broker is located more than 50 miles from the branch office and there are licensees who regularly conduct business assigned to the branch office, the supervising broker must certify in writing on a quarterly basis on a form provided by the board that the supervising broker complied with the requirements in this subsection; and
7. The supervising broker must maintain the records required in this
subsection for three years. The records must be furnished to the board’s
agent upon request.
In Context
I think it’s fairly clear that supervision must come from Brokers and all references here are to “Brokers”, and not Salespersons. I’ve recently spoken to DPOR on this issue and they were very clear that those holding Salesperson licenses could only do administrative duties such as office supplies, schedules and such; but that oversight and compliance issues need to be done by those holding a Broker’s license. Principal Brokers should be very careful in what responsibilities they give to their agents. Even those who have Broker’s licenses are encouraged to find information and support to help with this complicated job. Every month FAAR has a Broker’s roundtable lunch, just for managers to help tackle some of the emerging issues. Here is a list of tools that Managers can use. Also, it’s recommended that you check with your E and O insurance. Some of them have requirements to report who the current Manager is and that the Manager may have to be licensed as a Broker.
As always, if you have any questions, you can contact the Association staff and we’ll find the answers for you.
Your IP Address is:
38.107.191.112
{ 2 comments… read them below or add one }
Agree completely. However, no enforcement means the law will not be followed. Let’s seem some enforcement actions and we’ll see a change in behavior.
Yes, it’s sad that it has to work that way!
Julie Emery’s last blog post..Virginia Homeowners Alliance
When someone wants to be the broker in charge of an office, I hope they understand that they are putting their own license on the line each time one of “their agents” opens his/her mouth, creates an agency relationship, and/or puts pen to paper. A good supervising broker carries this very heavy burden in the back of the mind day and night. Sometimes its hard to sleep…