PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 11-17-083.
Title of Rule and Other Identifying Information: Amending WAC 308-124C-125 (9)(a); procedure for referring home inspectors to buyers or sellers.
Hearing Location(s): 2000 4th Avenue West, 2nd Floor Conference Room, Olympia, WA, on December 28, 2011, at 2:00 p.m.
Date of Intended Adoption: December 29, 2011.
Submit Written Comments to: Jerry McDonald, 2000 4th Avenue West, Olympia, WA 98507, e-mail jmcdonald@dol.wa.gov, fax (360) 570-7051, by December 21, 2011.
Assistance for Persons with Disabilities: Contact Sally Adams by December 21, 2011, TTY (360) 664-0116 or (360) 664-6526.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Required by statute. This will require designated brokers to establish procedures for their firm to use in referring home inspectors to clients.
Reasons Supporting Proposal: Consumer protection. This will help ensure that there is no collusion between the home inspector and a real estate licensee.
Statutory Authority for Adoption: RCW 18.85.041, 18.85.035.
Statute Being Implemented: RCW 18.85.035.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of licensing, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Jerry McDonald, 2000 4th Avenue West, (360) 664-6525.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Rules are for individual licensees. The department of licensing and the real estate commission utilized stakeholders to participate in the rule-making process.
A cost-benefit analysis is not required under RCW 34.05.328. The department of licensing is exempt from the provisions of this chapter.
November 22, 2011
Ben T. Shomshor
Agency Rules Coordinator
OTS-4401.1
AMENDATORY SECTION(Amending WSR 10-20-100, filed 9/30/10,
effective 10/31/10)
WAC 308-124C-125
Designated broker responsibilities.
Designated broker responsibilities include, but are not
limited to:
(1) Assuring all real estate brokerage services in which he/she participated are in accordance with chapters 18.85, 18.86, 18.235 RCW and the rules promulgated thereunder.
(2) Cooperating with the department in an investigation, audit or licensing matter.
(3) Ensuring accessibility of the firm's offices and records to the director's authorized representatives, and ensure that copies of required records are made available upon demand.
(4) Ensuring monthly reconciliation of trust bank accounts are completed, up-to-date and accurate.
(5) Ensuring monthly trial balances are completed, accurate and up-to-date.
(6) Ensuring that the trial balance and the reconciliation show the account(s) are in balance.
(7) Ensuring policies or procedures are in place to account for safe handling of customer or client funds or property.
(8) Maintaining up-to-date written assignments of delegations of managing brokers and branch manager duties. The delegation agreement(s) must be signed by all parties to the agreement. Delegations must:
(a) Only be made to managing brokers licensed to the firm.
(b) Address duties of record maintenance, advertising, trust accounting, safe handling of customer/client funds and property, authority to bind, review of contracts, modify or terminate brokerage service contracts on behalf of the firm, supervision of brokers and managing brokers, and heighten supervision of brokers that are licensed for less than two years.
(c) Address hiring, transferring and releasing licensees to or from the firm.
(9) Maintaining, implementing and following a written policy that addresses:
(a) ((Referral of home inspectors in compliance with
Washington Administrative Code.)) Procedures for referring a
home inspector to buyers or sellers. The policy will address
the consumer's right to freely pick a home inspector of the
buyer's or seller's choice and prevent any collusion between
the home inspector and a real estate licensee. If a licensee
refers a home inspector to a buyer or seller with whom they
have or have had a relationship including, but not limited to,
a business or familial relationship, then full disclosure of
the relationship must be provided in writing prior to the
buyer or seller using the services of the home inspector.
(b) Levels of supervision of all brokers, managing brokers and branch managers of the firm.
(c) Review of all brokerage service contracts involving any broker of the firm licensed for less than two years. Review must be completed by the designated broker or their delegated managing broker within five business days of mutual acceptance. Documented proof of review shall be maintained at the firm's record locations.
(10) Ensuring that all persons performing real estate brokerage services on behalf of the firm and the firm itself are appropriately licensed.
(11) Ensuring affiliated licensees submit their
transaction documents to the designated broker, branch manager
or delegated managing broker ((in a)) within
two business days of mutual acceptance.
(12) Being knowledgeable of chapters 18.85, 18.86, and 18.235 RCW and their related rules.
[Statutory Authority: RCW 18.85.041 (1), (7), (12)(a), and 18.85.275. 10-20-100, § 308-124C-125, filed 9/30/10, effective 10/31/10. Statutory Authority: RCW 18.85.040 and 18.85.041. 10-06-078, § 308-124C-125, filed 3/1/10, effective 7/1/10.]