SB-0026, As Passed Senate, December 13, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 26

     A bill to amend 1980 PA 299, entitled

"Occupational code,"

by amending sections 105, 204, 2501, 2502a, 2503, 2504, 2504a,

2505, 2506, 2507, 2509, 2510, 2512, and 2512d (MCL 339.105,

339.204, 339.2501, 339.2502a, 339.2503, 339.2504, 339.2504a,

339.2505, 339.2506, 339.2507, 339.2509, 339.2510, 339.2512, and

339.2512d), sections 105, 204, and 2507 as amended by 1988 PA 463,

sections 2501 and 2512 as amended and section 2512d as added by

2008 PA 90, sections 2502a and 2504 as amended and section 2504a as

added by 2014 PA 106, section 2503 as amended by 1990 PA 269,

section 2505 as amended by 2003 PA 196, section 2506 as amended by

2011 PA 33, and section 2509 as amended by 1988 PA 16, and by

adding sections 2502b, 2512e, 2512f, 2516, 2516a, and 2516b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 105. (1) "License" means the document issued to a person

under this act which will enable that enables the person to use a

designated title and practice an occupation, which practice would

otherwise be prohibited by this act. License includes a document

issued by the department which that permits a school, institution,

or person to offer training or education in an occupation or which

that permits the operation of a facility, establishment, or

institution in which an occupation is practiced. License includes a

permit or approval.

     (2) "Licensee" means a person who has been issued a license

under this act.any of the following, as applicable:

     (a) In articles 1 to 6, a person that is licensed or required

to be licensed under this act.

     (b) In a specific article of this act, a person that is

licensed or required to be licensed under that article.

     (3) "Limitation" means a condition, stricture, constraint,

restriction, or probation attached to a license or registration

relative to the scope of practice, including the following:

     (a) A requirement that the licensee or registrant perform only

specified functions of the licensee's or registrant's occupation.

     (b) A requirement that the licensee or registrant perform the

licensee's or registrant's occupation only for a specified period

of time.

     (c) A requirement that the licensee or registrant perform the

licensee's or registrant's occupation only within a specified

geographical area.

     (d) A requirement that restitution be made or certain work be

performed before a license or registration is issued, renewed, or

reinstated.

     (e) A requirement that a financial statement certified by a

person an individual who is licensed as a certified public

accountant be filed with the department at regular intervals.

     (f) A requirement which that reasonably assures a licensee's

or registrant's competence to perform the licensee's or

registrant's occupation.

     (g) A requirement that an attorney review all contracts of a

licensee or registrant. be reviewed by an attorney.

     (h) A requirement that a licensee or registrant have on file

with the department a bond that is issued by a surety insurer

approved by the department or cash in an amount determined by the

department.

     (i) A requirement that a licensee or registrant deposit money

received in an escrow account which can be disbursed only under

certain conditions as determined by the licensee or registrant and

another party.

     (j) A requirement that a licensee or registrant file reports

with the department at intervals determined by the department.

     (4) "Occupation" means a field of endeavor regulated by under

this act.

     (5) "Person" means an any of the following:

     (a) An individual. ,

     (b) A sole proprietorship, partnership, association,

corporation, limited liability company, or common law trust. , or a

combination of those legal entities. Person includes a

     (c) A combination of persons described in subdivision (a) or

(b).

     (d) A department, board, school, institution, establishment,

or governmental entity.

     (6) "Physical dominion" means control and possession.

     (7) "Physician" means that term as defined in section sections

17001 and section 17501 of the public health code, Act No. 368 of

the Public Acts of 1978, being sections 333.17001 and 333.17501 of

the Michigan Compiled Laws.1978 PA 368, MCL 333.17001 and

333.17501.

     (8) "Probation" means a sanction which that permits a board to

evaluate over a period of time a licensee's or registrant's fitness

to practice an occupation regulated by under this act.

     (9) "Public access" means the right of a person to view and

copy files pursuant to under the freedom of information act, Act

No. 442 of the Public Acts of 1976, as amended, being sections

15.231 to 15.246 of the Michigan Compiled Laws.1976 PA 442, MCL

15.231 to 15.246.

     (10) "Registrant" means a person who that is registered under

this act.

     (11) "Registration" means the document issued to a person

under this act which will enable that enables the person to use a

designated title, which use would be otherwise prohibited by this

act.

     (12) "Rule" means a rule promulgated under this act and

pursuant to under the administrative procedures act of 1969, Act

No. 306 of the Public Acts of 1969, as amended, being sections

24.201 to 24.328 of the Michigan Compiled Laws.1969 PA 306, MCL

24.201 to 24.328.

     (13) "State" means the District of Columbia or a commonwealth,

state, or territory of the United States.

     Sec. 204. (1) Unless otherwise provided in this act and

subject to the limitations set forth in under this section, the

department shall renew the license or registration of a person who

fulfills that does all of the following: requirements:

     (a) Has applied Applies to the department on a form provided

by the department for renewal of a license or registration. The

applicant must deliver the application for renewal shall be

received by to the department on or before the expiration date

prescribed by the department for the expiration of the person's

current license or registration.

     (b) Has paid Pays the appropriate fees prescribed in under

article 4.

     (c) Has met Meets the renewal requirements set forth in a

specific article , or a rule , or an order issued under this act.

     (2) Except as otherwise provided in this act, the department

may renew the license or registration of a person who does not meet

the requirements for renewal, if the person demonstrates to the

satisfaction of the department and a board that the requirements

for renewal as set forth in an article or rule do not constitute a

fair and adequate measure of the person's knowledge and skills or

that the requirements for renewal do not serve as an adequate basis

for determining whether a person could continue to perform an

occupation with competence. However, a requirement of attendance in

a continuing education program shall not be waived as a requirement

for the renewal. The procedure to be followed in obtaining a review

of requirements for renewal by the director and a board is

prescribed in article 5. The department shall not issue a license

or registration under this subsection until the person seeking

renewal pays the appropriate fees as prescribed in article 4.a

board that requires evidence of attendance in a continuing

education program as a condition to license renewal may waive that

requirement if, after receiving a written application, the board

finds the failure of the licensee to attend was due to the

licensee's disability, military service, or absence from the

continental United States or due to circumstances beyond the

control of the licensee that the board considers sufficient cause

to waive the requirement.

     (3) Except as otherwise provided in article 7, the department

may renew a license or registration renewed under this section may

be renewed under this act with a limitation. The department shall

notify the appropriate board of the department's intent to impose a

limitation on the renewal of a license of a person seeking license

renewal in the occupation for which the board serves. The

department may impose the limitation only with the approval of the

notified board. However, if the notified board, within 30 days

after receipt of the notification by the department, neither

approves nor disapproves does not approve or disapprove the

imposition of a limitation, the department may impose the

limitation. A person who that receives a license or registration

renewed with a limitation may receive a review of that limitation

as provided in under section 519.

     (4) It is the responsibility of the licensee or registrant to

renew a license or registration. The department shall send a

renewal application to the last known address of a licensee or

registrant on file with the department. The failure of a licensee

or registrant to notify the department of a change of address shall

does not extend the expiration date of a license or registration

and may result in disciplinary action.

     (5) A licensee or registrant shall report to the department a

change in name or mailing address, or a change of electronic mail

address if the licensee or registrant has provided an electronic

mail address under subsection (6), not later than 30 days after the

change occurs.

     (6) If the department is required or permitted under this act

to deliver or serve a notice or other communication to a licensee

or registrant by mail, the department may deliver or serve the

notice or communication by electronic mail rather than by first-

class mail if the licensee or registrant has provided an electronic

mail address to the department, authorized the department in

writing to deliver or serve notices and communications to the

licensee or registrant at the electronic mail address, and agreed

in writing that the licensee or registrant consents to the service

of any notice or communication sent to the electronic mail address

that the department would otherwise serve by mail.

     Sec. 2501. As used in this article:

     (a) "Associate broker" or "associate real estate broker" means

an individual who meets the requirements for licensure as a real

estate broker under this article and who is licensed as an

associate real estate broker under section 2505 to provide real

estate brokerage services as an employee or independent contractor

of a real estate broker.

     (b) "Business entity" means a person described in section

105(5)(b) or (c), except a sole proprietorship.

     (c) "Classroom course" means an educational course of

instruction that is provided at either of the following:

     (i) A physical location where instruction is offered and

students and an instructor are present.

     (ii) A location where a student receives instruction provided

by distance learning.

     (d) "Clock hour" means either of the following:

     (i) For a classroom course at a location described in

subdivision (c)(i), a period of 50 to 60 minutes of actual

classroom instruction, not including outside assignments and

reading.

     (ii) For a classroom course at a location described in

subdivision (c)(ii), the period required for a student to process

the amount of material provided in 50 minutes of distance learning

instruction.

     (e) "Control person" means an individual who is a sole

proprietor, is a partner in a partnership or limited partnership,

is an officer, director, or shareholder in a corporation, is a

member or manager in a limited liability company, or holds a

responsible position in any other form of business entity

authorized under the laws of this state or the state in which the

entity is organized or formed.

     (f) "Distance learning" means the technology and educational

process used to provide instruction to a student when the student

and the instructor are not necessarily physically present at the

same time or place. The term includes, but is not limited to,

instruction provided through an interactive classroom, computer

conferencing, or an interactive computer system.

(g) (a) "Employ" or "employment" means the relationship

between a real estate broker and an associate real estate 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 does not relieve the real

estate broker of the responsibility to supervise acts of the

licensee that are regulated by under this article.

(h) (b) "Independent contractor relationship" means a

relationship between a real estate broker and an associate real

estate 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 real estate broker or real estate

salesperson as an employee for federal and state income tax

purposes.

     (ii) Not less than At least 75% of the annual compensation

paid by the real estate broker to the associate real estate broker

or real estate salesperson is from commissions from the sale of

real estate.

     (i) "License cycle" means the term of a license issued under

this article.

(j) (c) "Limited service agreement" means a written service

provision agreement by which the a real estate broker and client

establish an agency relationship in which certain enumerated

services, as set forth in section 2512d(3)(b), (c), and (d), are

knowingly waived in whole or part by the client.

     (k) "Negotiate the mortgage of real estate" means engaging in

activity in connection with a mortgage that is not regulated under

the mortgage brokers, lenders, and servicers licensing act, 1987 PA

173, MCL 445.1651 to 445.1684, the secondary mortgage loan act,

1981 PA 125, MCL 493.51 to MCL 493.81, or the mortgage loan

originator licensing act, 2009 PA 75, MCL 493.131 to 493.171.

     (l) A "nonprincipal" of a real estate broker means a control

person who is licensed as an associate real estate broker under

this article, but is not designated as a principal under section

2505(1).

     (m) "Place of business" means a physical location that a real

estate broker, by advertisement, signage, or otherwise, represents

to the public is a place where clients and customers may consult or

do business with a licensee.

     (n) "Pocket card" means the pocket card that contains

information about the license that the department provides under

section 2506 when it issues a license under this article.

     (o) "Prelicensure course" means a course that is represented

to the public as fulfilling, in whole or in part, the requirements

of section 2504.

     (p) A "principal" of a real estate broker means a control

person who is licensed as an associate real estate broker and is

designated as a principal under section 2505(1).

(q) (d) "Professional designation" means a certification from

a real estate professional association demonstrating attainment of

that demonstrates that an individual has attained 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 awarded by the certifying

entity.

(r) (e) "Property management" means the leasing or renting, or

the offering to lease or rent, of real property of others for a

fee, commission, compensation, or other valuable consideration

pursuant to a property management employment contract.

(s) (f) "Property management account" means an interest-

bearing or noninterest-bearing account or instrument used in the

operation of property management.

(t) (g) "Property management employment contract" means the a

written agreement that is 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 that describes the

real estate broker's duties, responsibilities, and activities as a

property manager; and setting forth that describes the handling,

management, safekeeping, investment, disbursement, and use of

property management money, funds, and accounts.

(u) (h) "Real estate broker" means an individual , sole

proprietorship, partnership, association, corporation, common law

trust, or a combination of those entities who or business entity

that, 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 of, lists or

offers or attempts to list, or negotiates the purchase, or sale, or

exchange or mortgage of real estate; , or that negotiates the

mortgage of real estate; that negotiates for the construction of a

building on real estate; who that 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 that engages in

property management as a whole or partial vocation; who that 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, that, as owner or otherwise, engages

in the sale of real estate as a principal vocation.

(v) (i) "Real estate salesperson" means a person an individual

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 of, 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 the mortgage of real estate; to negotiate

for the construction of a building on real estate, or to lease or

offer to lease, or 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.

(w) (j) "Service provision agreement" means a buyer agency

agreement or listing agreement that is executed by a real estate

broker and a client that and establishes an agency relationship.

     (x) "Sponsor" means a person that represents to the public

that the courses it conducts for purposes of this article fulfill

the requirements of section 2504a for continuing education.

     Sec. 2502a. (1) The department shall issue by rule shall

establish the term of the license cycle for a license for a real

estate broker, associate real estate broker, and real estate

salesperson for a term of 3 years.granted under this article. The

department shall not issue a license to an individual who is under

the age of 18 years.

     (2) The department shall renew a license for a real estate

broker, associate real estate broker, or real estate salesperson if

the department receives an application for renewal on a form

prescribed by the department, and payment of the appropriate fees,

within the time period described in section 411(1) or (2), and the

applicable requirements of section 2504a are met.

     (3) The department may relicense a business entity that fails

to renew a real estate broker's license issued under this article

within the time period described in subsection (2) if the business

entity pays an application processing fee, the late renewal fee,

and the per-year license fee for the upcoming license period and

designates a principal under section 2505(1)(d).

(4) (3) The department may relicense without examination a

person that an individual who fails to renew a license issued under

this article within the time period described in subsection (2) if

all of the following are met:

     (a) The person individual applies within 3 years after the

expiration date of the person's last license.

     (b) The person individual pays an application processing fee,

the late renewal fee, and the per-year license fee for the upcoming

licensure period.

     (c) The person individual completes 6 clock hours of

continuing education for each year and partial year that have

elapsed since the expiration of the person's his or her last

license, on the topics described in section 2504a(1).

(5) (4) The department may relicense a person that an

individual who failed to renew a real estate broker or associate

broker license within 3 years after the expiration date of the

person's last his or her last real estate broker or associate

broker license if the person he or she pays an application

processing fee, the late renewal fee, and the per-year license fee

for the upcoming licensure period and submits proof that the

person, if the person is an individual, or the individual

designated as the person's principal under section 2505 if the

person is not an individual, he or she meets any of the following:

     (a) Has completed a total of 6 clock hours of continuing

education for each year and partial year that have elapsed since

the expiration of the person's last his or her last real estate

broker or associate real estate broker license, on the topics

described in section 2504a(1).

     (b) Has completed 90 clock hours of prelicensure courses

described in section 2504(3) in the 12-month period preceding the

date of the application.

     (c) Has passed the examination required for a real estate

broker license under section 2505(5).

(6) (5) The department may relicense an individual who failed

to renew a real estate salesperson license within 3 years after the

expiration date of his or her last license if he or she pays an

application processing fee, the late renewal fee, and the per-year

license fee for the upcoming licensure period and submits proof

that he or she meets any of the following:

     (a) Has completed a total of 6 clock hours of continuing

education for each year and partial year that have elapsed since

the expiration of his or her last license, on the topics described

in section 2504a(1).

     (b) Has completed 40 clock hours of prelicensure courses

described in section 2504(3) in the 12-month period preceding the

date of the application.

     (c) Has passed the examination required for a real estate

salesperson license under section 2505(5).

     (7) An individual whose license is revoked shall not apply for

a new license for at least 3 years after the service of the final

order of the revocation. To be considered for a license following a

revocation, an applicant shall meet all educational and examination

requirements in effect at the time of application, and the

applicant shall not receive credit for education or experience

acquired, or examinations passed, before the revocation.

     Sec. 2502b. (1) Unless the owner engages the services of a

real estate broker in connection with those sales, an individual

who is the owner of real estate must obtain a license as a real

estate broker to engage in the sale of that real estate as a

principal vocation. For purposes of this subsection, each of the

following is considered engaging in the sale of real estate as a

principal vocation:

     (a) Engaging in more than 5 real estate sales in any 12-month

period.

     (b) Representing to the public that he or she is principally

engaged in the sale of real estate.

     (c) Devoting over 50% of his or her working time, or more than

15 hours per week in any 6-month period, to the sale of real

estate.

     (d) If he or she is a real estate salesperson, a sale of real

estate other than his or her principal residence.

     (2) A sale of real estate that is owned by, or under option

to, a real estate broker or associate real estate broker is subject

to the provisions of this article.

     (3) If a licensee is selling property that is owned by the

licensee or in which the licensee has an interest, the licensee

shall reveal the facts of the licensee's ownership or interest and

the licensee's licensure to the purchaser, in writing, before an

offer to purchase is signed. A licensee shall provide written proof

of this disclosure that is satisfactory to the department on

request by the department.

     Sec. 2503. (1) This article shall does not apply to an

individual, partnership, association, or corporation, who a person

that, as owner, sells or offers for sale a detached, single family

dwelling, duplex, triplex, or quadruplex, which that has never been

occupied and which that was built by the individual, partnership,

association, or corporation person while licensed under article 24.

This article does not apply to an individual, partnership,

association, or corporation, who as owner or lessor, or as an

attorney-in-fact acting under a duly executed and recorded power of

attorney from the owner or lessor, or who has been a person

appointed by a court, that 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.

     (2) This article shall does not include the services rendered

by apply to an attorney at law attorney-at-law who is rendering

services as an attorney at law, nor shall it include attorney-at-

law; to a receiver, trustee in bankruptcy, administrator, executor,

a person selling real estate under order of a court; , nor or to a

trustee selling under a deed of trust, . This exemption of a

trustee shall not apply to unless the trustee makes repeated or

successive sales of real estate by the trustee, unless the sale is

made not through a licensed real estate broker.

     (3) This article does not apply to a person who that 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, 1987

PA 173, MCL 445.1651 to 445.1684, and who that does not perform any

other act requiring a license as a real estate broker, associate

broker, 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.

     Sec. 2504. (1) Both of the following must be met before an

applicant receives a real estate broker's license under this

article:

     (a) The applicant must submit an application under section

2505.

     (b) The applicant, if the applicant is an individual, or the

individual designated as the principal of the applicant under

section 2505 if the applicant is not an individual, a business

entity, must successfully complete at least 90 clock hours of

approved prelicensure classroom courses in real estate. , of which

at All of the following apply to these 90 hours of instruction:

     (i) At least 9 clock hours is must be instruction on civil

rights law and equal opportunity in fair housing law.

     (ii) The 90 hours are in addition to the hours required to

obtain a real estate salesperson's license.

     (iii) The applicant must complete the 90 hours within the 36-

month period preceding the date of the application unless the

applicant has held an active license as a real estate salesperson

for that period.

     (iv) The department by rule may determine that possession of 1

or more of the following credentials is the equivalent to

completing prelicensure classroom courses described in this

subdivision, and the appropriate number of clock hours of credit

that an applicant or principal of an applicant, as applicable,

receives for possessing each credential:

     (A) A law degree.

     (B) A bachelor's degree in business or finance from a degree-

or certificate-granting public or independent nonprofit college or

university, junior college, or community college.

     (C) A master's degree in business or finance from a degree- or

certificate-granting public or independent nonprofit college or

university, junior college, or community college.

     (D) Any other educational credential that the department, in

consultation with the board, determines is the equivalent to

completing prelicensure classroom courses described in this

subdivision.

     (2) Before he or she is permitted to take the real estate

salesperson's examination, the an applicant must show proof that he

or she has successfully completed at least 40 clock hours of

approved prelicensure classroom courses in principles of real

estate, of which including at least 4 clock hours is of instruction

on civil rights law and equal opportunity in housing. The applicant

must complete the 40 hours of prelicensure education within the 36-

month period preceding the date of the application.

     (3) For purposes of subsections (1) and (2), an approved

prelicensure courses may be on course is a classroom course that

meets all of the following:

     (a) Meets criteria established by the department. The

department may promulgate rules to establish these criteria.

     (b) Covers 1 or more of the following topics:

(i) (a) Real estate license law and related regulatory laws.

(ii) (b) Real property law, including property interests and

restrictions.

(iii) (c) Federal, state, and local tax laws affecting real

property.

(iv) (d) Conveyances, including contracts, deeds, and leases.

(v) (e) Financing, including mortgages, land contracts,

foreclosure, and limits on lending procedures and interest rates.

(vi) (f) Appraisal of real property.

(vii) (g) Design and construction.

(viii) (h) Marketing, exchanging, and counseling.

(ix) (i) The law of agency.

(x) (j) Sales and office management, including listing and

selling techniques.

(xi) (k) Real estate securities and syndications.

(xii) (l) Investments, including property management.

     (4) A person that offers or conducts a prelicensure course or

courses of study that are represented to meet the educational

requirements of this section shall first obtain approval from the

department and shall comply with the rules of the department

concerning curriculum, instructor qualification, grading system,

and other related matters. A course shall be designed to be taught

for at least 1 clock hour, not including time spent on breaks,

meals, or other unrelated activities. The department may suspend or

revoke the approval of a person approved under this subsection for

a violation of this article or of the rules promulgated under this

article. A person that offers or conducts 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 under this subsection is a

recommendation or indorsement endorsement of the person to which it

is issued or of a course of instruction given by it. A prelicensure

course approved under this section shall be conducted by a 1 of the

following:

     (a) A local public school district. , a

     (b) A community college. , an

     (c) An institution of higher education authorized to grant

degrees. , or a proprietary school licensed by the department under

the proprietary schools act, 1943 PA 148, MCL 395.101 to 395.103.

     (d) Any other education provider approved by the department

under this subsection, if that provider meets any requirements for

prelicensure education providers established by the department by

rule, in consultation with the board.

     (5) A person that violates subsection (4) in operating a

school that provides 1 or more courses described in this section is

subject to the penalties set forth in article 6.

     (6) 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 in 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.

     (7) For purposes of subsection (3)(b), the department may

contract under section 210 with a statewide real estate association

that has a membership representing more than 18,000 licensees to do

any of the following:

     (a) Review prelicensure courses and make recommendations to

the department of whether the department should approve a

prelicensure course, based on criteria established by the

department.

     (b) Review prelicensure courses to determine whether the

subject matter of the courses is relevant to the practice of real

estate.

     Sec. 2504a. (1) Within In each 3-year year of a license cycle,

subject to subsection (7), a licensee shall successfully complete

at least 18 6 clock hours of eligible continuing education courses.

that involve any subjects that are relevant to the management,

operation, and practice of real estate or any other subject that

contributes to the professional competence of a licensee or

applicant.

     (2) All of the following apply to this the continuing

education requirement described in subsection (1):

     (a) In each calendar year of each 3-year license cycle, a

licensee shall complete at least 2 hours of the required 18 hours

of continuing education courses.

(a) (b) In completing the appropriate number of eligible

continuing education courses, a licensee may select education

courses in his or her area of expertise, but at least 2 hours of

the education courses in a calendar year each year of a license

cycle must involve law, rules, and court cases regarding real

estate.

(b) (c) At the time he or she attends a an eligible continuing

education course, a licensee shall do both of the following to

confirm his or her identity:

     (i) Present his or her pocket card, or provide his or her

license identification number, from the department to the course

provider.

     (ii) Present his or her operator's license or chauffeur's

license issued under the Michigan vehicle code, 1949 PA 300, MCL

257.1 to 257.923, an official state personal identification card

issued under 1972 PA 222, MCL 28.291 to 28.300, or other

government-issued photo identification to the course provider.

(c) (d) Any education course that the licensee successfully

completes to obtain a professional designation is counted toward

the total continuing education credits required in a 3-year license

cycle.

(d) (e) If a licensee successfully completes a an eligible

continuing education course, he or she does not earn additional

hours toward the requirements of this section if he or she repeats

that course.

(3) (2) An applicant for license renewal under section 2502a

shall certify compliance with subsection subsections (1) and (2) to

the department. A licensee shall retain evidence acceptable to the

department that demonstrates he or she has met the continuing

education requirements under this section, for at least 4 years

after the date of that certification, and shall produce the record

that contains that evidence at the request of the department. The

department shall consider the following as acceptable evidence

under this subsection:and shall produce the following information

at the request of the department:

     (a) The name and contact information of the continuing

professional education program sponsor.

     (b) The participant's name.

     (c) The course title and course field of study.

     (d) The date the course was offered or completed.

     (e) If applicable, the location of the course.

     (f) The type of instruction or delivery method used for

presenting the course.

(f) (g) Verification by a representative of the continuing

professional education program sponsor of the participant's

completion of the course.

(g) (h) A time statement from the continuing professional

education program sponsor that states that continuing professional

education credits for the course were granted on a 50-minute hour.

(4) (3) An applicant for license renewal under section 2502a

is subject to audit by the department for compliance with

subsection subsections (1) or (6) and (2), or (7), and may be

required to submit the documentation described in subsection (2)

(3) to the department on request.

(5) (4) If the department finds as the result of an audit

under subsection (3) (4) that an applicant for license renewal

under section 2502a has not completed did not complete sufficient

hours of eligible continuing education courses to renew his or her

license, the department may allow the applicant to renew his or her

license by completing any penalty imposed by the department shall

include a requirement that the licensee must complete both of the

following, if applicable:

     (a) A sufficient number of additional hours of continuing

education to fulfill the requirements for the period determined by

audit to be deficient.

     (b) If the period determined by the audit to be deficient is

at least 60 days, additional hours of continuing education in 1 of

the following amounts:

     (i) If the deficiency period is at least 60 days and less than

120 days, 4 hours.

     (ii) If the deficiency period is 120 days or more, 8 hours.

(6) (5) Hours of additional continuing education required

under subsection (4)(b) (5)(b) do not apply toward continuing

education required in the next 3-year each year of a license cycle.

The department may waive the requirement for additional hours under

subsection (4)(b) (5)(b) if the applicant demonstrates to the

department that the additional hours would present an undue

hardship on the applicant.

(7) (6) A If a real estate broker, associate real estate

broker, or salesperson who receives a license issued in the second

or third year of a 3-year license cycle is required to comply with

the continuing education requirements under subsection (1), except

as follows:that is issued after the beginning of the current

license cycle for that license, the department may prorate the

number of hours of eligible continuing education that licensee is

required to complete under subsections (1) and (2) for the year of

the license cycle in which the license is issued.

     (a) A real estate broker, associate broker, 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.

     (b) A real estate broker, associate broker, or salesperson who

receives a license issued in the third year of the 3-year license

cycle is required to complete 6 hours of continuing education.

(8) (7) Course credits used to meet continuing education

requirements under this section do not apply toward the real estate

broker's license prelicensure education requirements under section

2504, and course credits successfully completed under real estate

broker's license prelicensure education requirements under section

2504 do not apply toward the continuing education requirements of

this section.

     (9) As used in this section, "eligible continuing education

course" means a continuing education course that meets the

standards established by the department by rule under subsection

(1) and, if successfully completed by a licensee, is counted toward

the licensee's continuing education requirements under this

section.

     Sec. 2505. (1) An applicant individual or business entity that

is applying for a real estate broker's license shall file an

application setting forth with the department. All of the following

apply to an application for a real estate broker's license:

     (a) The application must include the applicant's present

address, both of business and current business address; if the

applicant is an individual, the address of his or her residence;

and the complete address of each former place where the applicant

has resided or been was 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

     (b) The application must include the name of the individual,

sole proprietorship, partnership, association, corporation, limited

liability company, common law trust, or a combination of those

entities and individual or business entity that is the proposed

licensee; the location of the place for which the license is

desired, sought; and set forth the period of time in 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

     (c) The application must be executed by the applicant, if the

applicant is an individual, or by a principal of the applicant if

the applicant is a business entity.

     (d) If the applicant is a business entity, the application

shall designate which individuals who are officers or members of

the partnership, association, limited liability company, or

corporation control persons of the entity will be performing acts

regulated by this article as principals. An applicant shall not

designate a control person as a principal unless that control

person is licensed as an associate real estate broker under this

article.

     (2) The department shall not issue a real estate broker's

license to a new applicant an individual 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.in this state,

the real estate broker must obtain a branch office license for each

of those additional places of business. If a branch office is

located more than 25 miles from the nearest boundary of the

municipality in which the main office of the real estate broker is

located, the broker shall ensure that the branch office is under

the direct supervision of an associate broker. As used in this

subsection, "direct supervision" means that an associate broker is

physically present at the branch office on a regular basis to

supervise and manage the business during ordinary business hours.

     (4) An applicant application for a real estate salesperson'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 that will employ the applicant. is to

enter.The department shall only issue a real estate salesperson's

license to an individual.

     (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

or salesperson's license or of an officer or member of an

applicant. The department shall require an applicant for a broker's

or salesperson's license to license under this article if the

applicant is an individual or of each principal if the applicant is

a business entity. Subject to subsection (6), the department shall

require that each of those individuals pass an examination

developed by the department or contracted for with a recognized

outside testing agency establishing, that establishes, in a manner

satisfactory to the department, that the applicant he or she 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 and salespersons. The department may require

written examination or written reexamination of a broker or

salesperson, and in that case an individual described in this

subsection, and if the department does require a written

examination or reexamination under this subsection, the department

shall not issue a license unless the individual taking the

examination or reexamination achieves a passing score satisfactory

to the department. is required as a condition precedent to

relicensure of a broker or salesperson.

     (6) All of the following apply to the written examination

requirement described in subsection (5):

     (a) The department may relicense without examination an

individual who is applying for a real estate broker's or associate

real estate broker's license; has previously held a real estate

broker's or associate real estate broker's license that has lapsed;

and has been continuously licensed as a real estate salesperson

since the lapse of the previous license.

     (b) A passing score on an examination, or on a portion of an

examination if the examination is given in separate parts, is valid

for 1 year from the date of the examination.

     (7) The department shall require proof that each applicant for

a real estate broker's license, if the applicant is an individual,

or each principal if the applicant is a business entity, 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.All of the

following apply in determining whether an individual meets this

experience requirement:

     (a) If state law requires that a person hold a license to be

licensed to perform an activity that is considered the business of

real estate, an individual shall not receive credit for experience

performing that activity without proper licensure.

     (b) For purposes of calculating whether an individual has the

equivalent of 3 years of experience, the department shall grant the

following credit or credits toward that 3-year requirement:

     (i) If the individual is a real estate salesperson, 1 year of

credit for each 12-month period of licensure in which he or she

closed 5 or more real estate transactions.

     (ii) If the individual is a builder, 1 year of credit for each

12-month period in which he or she built and personally sold or

leased at least 5 residential units, commercial units, or

industrial units or a combination of those types of units.

     (iii) If the individual is a real estate investor, 6 months of

credit for each 5 real property transactions personally negotiated

for a purchase or sale by the individual for his or her own

account, with a maximum of 1 year of credit allowed. However, an

individual shall not receive credit under this subdivision if he or

she engaged in more than 5 sales in any 12-month period in

violation of section 2502b.

     (iv) If the individual is a land or condominium developer, 1

year of credit for each 2 developments or subdivisions that contain

at least 10 units or parcels that he or she bought, subdivided, and

improved for sale as lots or dwellings.

     (v) If the individual is an attorney, 1 year of credit for

each year in which he or she acted as the attorney for at least 6

real estate transactions.

     (vi) If the individual is a real estate appraiser who is

licensed under article 26, 1 year of credit for each period

equivalent to at least 40 hours per week, and at least 48 weeks per

year, in which he or she acted as a real estate appraiser.

     (vii) One year of credit for each period equivalent to at

least 40 hours per week, and at least 48 weeks per year, in which

the individual worked in a capacity directly related to the

acquisition, financing, or conveyance of real estate, or in a

position in which the individual was directly involved in a real

estate business, including serving as the decision-making authority

in any of the following positions:

     (A) A loan or trust officer of a federal or state-regulated

depository institution.

     (B) A loan or trust officer of a mortgage company.

     (C) A real estate officer of a corporation, and who is not a

licensed real estate broker.

     (D) A title insurance company officer engaged in the closing

of escrow accounts and real estate closings.

     (viii) Credit for any other experience that is approved by the

department by rule, in consultation with the board, as equivalent

to the experience described in this subsection.

     Sec. 2506. (1) Except as provided in subsection (5), an

individual shall not act as a real estate broker, associate real

estate broker, or real estate salesperson if he or she has not

received from the department his or her license and pocket card or

received a temporary license. An individual licensed under this

article shall not act as a real estate broker, associate real

estate broker, or real estate salesperson if he or she does not

have, on his or her person, his or her pocket card or temporary

license or a photocopy or digital image of that pocket card or

temporary license.

     (2) (1) The department shall deliver or mail the license of a

real estate salesperson to the real estate broker that employs the

real estate salesperson, and the broker shall retain custody and

control of the salesperson's certificate of license and deliver the

pocket card for that license to the salesperson. A real estate

salesperson shall provide proof to the broker that employs him or

her that the real estate salesperson was issued and currently holds

a real estate salesperson license.

(3) (2) A licensee shall give written notice to the department

of any change of either a principal or branch business location.

     (3) As used in this subsection, "pocket card" means the pocket

card that contains information about the license that the

department provides when it issues a license under this article.

     (4) If he or she receives notice that his or her license is

suspended or revoked, a real estate salesperson, or an associate

real estate broker that is not the sole associate real estate

broker for a real estate broker that is a business entity, shall

immediately forward his or her pocket card to the department and

the real estate broker to which the individual was licensed shall

immediately forward the salesperson's or associate real estate

broker's license to the department. If he or she receives notice

that his or her license is suspended or revoked, a real estate

broker who is an individual, or an associate real estate broker who

is the sole associate real estate broker for a real estate broker

that is a business entity, shall immediately forward to the

department his or her license and pocket card, the licenses and

pocket cards of all real estate salespersons and nonprincipal

associate real estate brokers issued under the real estate broker,

and all of the real estate broker's branch office licenses.

     (5) If the department receives a completed application under

section 2507 or 2508 for transfer of a real estate salesperson's

license or an associate real estate broker's license to a new real

estate broker and the applicable fees, the department shall

consider the pocket card as proper evidence of licensing for 45

days from the latest date written on the back of the card. If the

real estate salesperson or associate real estate broker who is

applying for the license transfer is notified that the application

is incomplete, or the real estate broker to which he or she is

transferring his or her license is not licensed, his or her pocket

card is no longer valid and the applicant must wait until the new

broker receives his or her wall license and pocket card before

engaging in activities that are regulated under this article.

     Sec. 2507. (1) If a real estate salesperson 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 license. If a written

notice of termination of employment is not served upon on the real

estate broker by the real estate salesperson, the department shall

notify the real estate broker in writing that it has received an

application to the department for a transfer of license by the real

estate salesperson. shall be communicated in writing by the

department to the real estate broker. As of the date of the

communication, the notice notification, the notification shall

operate as if a written notice were served by the real estate

salesperson upon or the real estate broker. The

     (2) A real estate broker, at the time of mailing the it

delivers or mails a real estate salesperson's license to the

department under subsection (1), shall address a communication

notify the real estate salesperson in writing, delivered or mailed

to the last known residence address of the real estate salesperson,

which communication shall advise that advises the real estate

salesperson that the license real estate broker has been delivered

or mailed the license to the department. A copy of the

communication to the real estate salesperson shall accompany the

license when the license is mailed or delivered to the department.

A

     (3) Except as provided in section 2506(5), a real estate

salesperson 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 broker.

Another license shall not be issued to a real estate salesperson

until the person returns the former pocket card to the department

or satisfactorily accounts to the department for the pocket card.

Not his or her termination from a real estate broker under this

section.

     (4) The department shall not issue more than 1 license shall

be issued to a real estate salesperson for the same period of time.

     Sec. 2509. (1) A principal may be issued The department may

issue more than 1 associate real estate broker's license to

principals of a real estate broker.

     (2) A nonprincipal shall not be issued An individual shall not

hold more than 1 associate real estate broker's license as a

nonprincipal, but an individual may hold 1 or more associate real

estate broker's licenses as a principal.

     (3) As used in this section and section 2508:

     (a) "Nonprincipal" means an individual who is licensed as an

associate real estate broker, but has not been designated as a

principal under section 2505(1).

     (b) "Principal" means an individual designated as a principal

under section 2505(1).

     Sec. 2510. (1) A real estate salesperson shall not accept from

a person other than the real estate salesperson's employer a

commission or valuable consideration for the performance of an act

specified in this article from any person other than the real

estate broker that employs the salesperson.

     (2) If an individual earned commissions or other income while

employed by a real estate broker, it is not grounds for

disciplinary action under section 2512 for that broker to pay those

commissions or income to that individual, regardless of whether

that individual is now employed by another real estate broker or is

no longer licensed.

     Sec. 2512. (1) A licensee who that 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 If the licensee is an associate real estate

broker or real estate salesperson, represents or attempts to

represent a real estate broker other than the his or her employer

without the express knowledge and consent of the employer.

     (d) Fails to account for or to remit money coming that comes

into the licensee's possession which that belongs to others.

     (e) Changes a business location without notification to the

department.

     (f) In the case of If the licensee is a real estate broker,

fails to return a real estate salesperson's license within 5 days

as provided in under section 2507.

     (g) In the case of a If the licensee engaged in property

management, violates section 2512c(2), (5), or (6).

     (h) Except as provided in section 2512b, 2510(2), shares or

pays a fee, commission, or other valuable consideration to a person

that is not licensed under this article, including payment to any

person providing the names that provides the name of, or any other

information regarding, a potential seller or purchaser of real

estate but excluding payment for the purchase of a commercially

prepared lists list of names. However, a licensed real estate

broker may pay a commission to a licensed real estate broker of

that is licensed by 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

that does not comply with section 2601(a)(ii).

     (j) Fails to provide the minimum services as specified in

under section 2512d(3) when providing services pursuant to under a

service provision agreement unless expressly waived in writing by

the client under section 2517(3).2517(2).

     (k) Except in the case of connection with a property

management accounts, account, 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:money in its possession that belongs to another person in

a custodial trust or escrow account that is maintained by the real

estate broker, in a manner that complies with all of the following:

     (i) A real estate broker shall retain a deposit or other money

made payable to a person , partnership, corporation, or association

holding that holds 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 or deliver to

the real estate broker, upon on receipt, a deposit or other money

on paid in connection with a transaction in which the real estate

salesperson is engaged on behalf of the real estate broker.

     (iii) A real estate broker shall not deposit or permit the

deposit of an advance payment of funds belonging money that belongs

to others to be deposited in the real estate broker's business or

personal account or to be commingled commingle or permit the

commingling of that money with funds on deposit belonging that

belong to the real estate broker.

     (iv) A real estate broker may maintain more than 1 trust

account. A real estate broker may deposit not more than $2,000.00

of its own money in each trust account to cover bank service

charges and bank minimum balance requirements or to avoid the

closing of the account because there is no money in the account.

The real estate broker shall account for any of its own money in a

trust account in the records described in subparagraph (vi).

(v) (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 that belongs to others

and is 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.

(vi) (v) A real estate broker shall keep records of funds

money deposited in its custodial trust or escrow account, which and

indicate clearly in those 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 are

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 under 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.

(vii) (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 shall hold a deposit, a licensee in possession

of such a that deposit shall cause the deposit to be delivered to

the named escrowee within 2 banking days after the licensee has

received receives notice that an offer to purchase is accepted by

all parties.

     (2) A complaint that seeks a penalty under article 5 for a

violation of this section must be filed within 18 months after 1 of

the following dates, whichever occurs later:

     (a) The date of the alleged violation.

     (b) If the alleged violation occurs in connection with a real

estate transaction, the date the transaction is completed.

     Sec. 2512d. (1) A real estate broker or real estate

salesperson licensee that is acting pursuant to under the terms of

a service provision agreement shall perform the duties imposed

described in subsection (2). A real estate broker may authorize a

designated agent to represent the client, so long as if that

authorization is in writing.

     (2) A real estate broker or real estate salesperson licensee

that is acting pursuant to under the terms of a service provision

agreement owes, at a minimum, the following duties to his or her a

client:

     (a) The exercise of reasonable care and skill in representing

the client and carrying out the responsibilities of the agency

relationship.

     (b) The performance of the terms of the service provision

agreement.

     (c) Loyalty to the interest of the client.

     (d) Compliance with the laws, rules, and regulations of this

state and any applicable federal statutes or regulations.

     (e) Referral of the client to other licensed professionals for

expert advice related to material matters that are not within the

expertise of the licensed agent.broker.

     (f) An accounting in a timely manner of all money and property

received by the agent broker in which the client has or may have an

interest.

     (g) Confidentiality of all information obtained in the course

of the agency relationship, unless disclosed with the client's

permission or as provided by law, including the duty not to

disclose confidential information to any licensee who is not an

agent of the client.

     (3) A real estate broker or real estate salesperson licensee

that is acting pursuant to under the terms of a service provision

agreement shall provide the following services to his or her a

client:

     (a) When If the real estate broker or real estate salesperson

is representing a seller or lessor, the marketing of the client's

property in the manner agreed upon on in the service provision

agreement.

     (b) Acceptance of delivery and presentation of offers and

counteroffers to buy, sell, or lease the client's property or the

property the client seeks to purchase or lease. At the time of

execution of an offer to purchase, a licensee shall recommend to

the purchaser that the purchaser require that the seller provide a

fee title policy in the amount of the purchase price to the

purchaser, issued or certified to the approximate date of closing

of the real estate transaction.

     (c) Assistance in developing, communicating, negotiating, and

presenting offers, counteroffers, and related documents or notices

until a purchase or lease agreement is executed by all parties and

all contingencies are satisfied or waived.

     (d) After execution of a purchase agreement by all parties,

assistance as necessary to complete the transaction under the terms

specified in the purchase agreement. Without written approval of

the buyer and seller, a licensee shall not close a transaction on

any terms or conditions that are contrary to the terms or

conditions of an executed purchase agreement.

     (e) For a real estate broker or associate real estate broker

who that is involved at the closing of a real estate or business

opportunity transaction, furnishing, or causing to be furnished, to

the buyer and seller, a complete and detailed closing statement

signed by the broker or associated associate real estate broker

showing each party all receipts and disbursements affecting that

party. However, this subdivision does not apply if the closing is

conducted by a title insurance company, or a person designated to

act as the agent of a title insurance company, that is licensed or

authorized to do business in this state.

     (4) A real estate broker or real estate salesperson that is

representing a seller under a service provision agreement shall not

advertise the property to the public as "for sale by owner" or

otherwise mislead the public to believe that the seller is not

represented by a real estate broker.

     (5) The services described in subsection (3)(b), (c), and (d)

may be waived in a limited service agreement.

     Sec. 2512e. (1) Except as provided in subsection (2), any

advertisement to buy, sell, exchange, rent, lease, or mortgage real

property or a business opportunity by a real estate broker shall

include the broker's name or the name under which the broker is

conducting business; shall include the broker's telephone number or

street address; and shall state that the person doing the

advertising is a real estate broker.

     (2) An individual who is licensed as a real estate broker or

associate real estate broker may advertise real property that he or

she personally owns for sale or for lease in his or her own name,

and is not required to include the name of the real estate broker,

or the name of the real estate broker that employs the associate

real estate broker, as the sales or leasing agent for the property

in the advertisement. However, the advertising shall indicate

affirmatively that the individual who is selling or leasing the

real property is a licensed real estate broker or associate real

estate broker.

     (3) Except as provided in subsection (2) or (4), a real estate

salesperson or an associate broker shall only advertise to buy,

sell, exchange, rent, lease, or mortgage real property or a

business opportunity under the supervision of, and in the business

name of, his or her employing broker. Any advertising displayed or

published on or after January 1, 2018, that includes the name of an

associate broker, a salesperson, or a cooperating group of

associate brokers or salespersons employed by the same real estate

broker, shall include all of the following:

     (a) The telephone number or street address of the employing

broker.

     (b) The business name of the employing broker, in equal or

greater type size than the name of the associate broker,

salesperson, or cooperating group.

     (4) A real estate salesperson shall not advertise to sell real

property under his or her own name unless the property is the

principal residence of the salesperson. A real estate salesperson

shall not advertise real property for rent or lease under his or

her own name unless the salesperson is the owner of the property.

     (5) A real estate broker shall not conduct business or

advertise under a name other than that in which the broker's

license is issued or under an assumed name that is authorized by

law. A real estate broker shall notify the department of its

adoption of an assumed name with its license application, or within

30 days after it adopts an assumed name, whichever is earlier.

     Sec. 2512f. (1) A real estate broker or associate real estate

broker shall supervise the work of a real estate salesperson. For

purposes of this subsection, supervision of a real estate

salesperson includes at least all of the following:

     (a) Direct communication in person or by radio, telephone, or

electronic communication, on a regular basis.

     (b) Review of the practice of the salesperson.

     (c) Review of the salesperson's reports.

     (d) Analyses and guidance of the salesperson's performance in

regulated activities.

     (e) Providing written operating policies and procedures to the

salesperson.

     (2) A real estate broker shall not contract with an individual

real estate salesperson or nonprincipal associate real estate

broker who is employed by the real estate broker in a manner that

limits the broker's authority to supervise the salesperson under

subsection (1).

     Sec. 2516. (1) If a licensee buys or otherwise acquires,

directly or indirectly, an interest in real property, the licensee

shall disclose to the owner of the property that the licensee is

licensed under this part before the owner is asked to sign the

purchase agreement.

     (2) If a licensee acquires, directly or indirectly, an option

to purchase real property from an owner that requested the

licensee's services as a real estate licensee in connection with

that property, the licensee shall disclose to the owner of the

property that the licensee is licensed under this part before the

owner is asked to sign the option agreement.

     (3) A licensee that buys or otherwise acquires an interest in

real property, directly or indirectly, and that is owed a

commission, fee, or other valuable consideration as a result of the

sale, shall disclose that the licensee is licensed under this part

to the seller or owner to receive the specified consideration.

     (4) On request of the department, a licensee shall provide

written proof of any disclosures and consents required under this

section to the department.

     Sec. 2516a. During normal business hours, a licensee shall

allow any authorized representative of the department to enter any

of its places of business in this state and inspect any document or

record that the department determines is reasonably necessary for

an investigation of the licensee or a review of the business

activities of the licensee, the administration of this act, or the

administrative rules promulgated under this article.

     Sec. 2516b. R 339.22205 to R 339.22301, R 339.22309 to R

339.22311, R 339.22317 to R 339.22319, R 339.22323 to R 339.22329,

and R 339.22339 to R 339.22405 of the Michigan Administrative Code

are rescinded.

     Enacting section 1. This amendatory act takes effect January

1, 2017.