2614 SUPERVISION

2614.1 A real estate broker is responsible for the day-to-day supervision of real estate salespersons, associate real estate brokers, and property managers affiliated with the real estate broker.2614.2 A property manager is responsible for the day-to-day supervision of each person who engages in property management, ministerial, or clerical functions on behalf of the property manager.2614.3 If the real estate broker is an organization licensed pursuant to § 2601.11 of this chapter, the supervision shall be carried out by the licensed real estate broker that manages the particular branch where the subordinate licensee is employed.2614.4 Supervision performed under this chapter shall be reasonable and adequate and shall be over the activities of the persons affiliated or registered with that office.2614.5 The exercise of reasonable and adequate supervision may not be construed as or deemed to create the existence of an employer-employee relationship between the supervisor and the licensed real estate organization and the associate real estate broker or real estate salesperson or to alter the status of an independent contractor.2614.6 Reasonable and adequate supervision shall be determined by considering the characteristics of the firm, which shall include the following:- (a) The number of licensed real estate salespersons and associate real estate brokers affiliated with the real estate broker;

- (b) The number of branch offices and salespersons and associate real estate brokers assigned to each office;

- (c) The number of management personnel assigned to each office;

- (d) The normal and routine working days and hours of management and supervisory personnel; and

- (e) The type of real estate activities of the firm.2614.7 Factors to be considered in determining whether supervision is reasonable and adequate shall include, but are not limited to, the following:- (a) The frequency of mandatory and voluntary training and education sessions;

- (b) The availability of experienced supervisory personnel to review and discuss contract provisions, listing provisions, and advertising matters;

- (c) The availability and enforcement of written procedures and policies that provide clear guidance for the following:

- (1) The handling of deposit monies and other funds in accordance with the escrow provisions of the chapter;

- (2) Compliance with federal and District fair housing laws and regulations;

- (3) Compliance with advertising requirements applicable to real estate transactions;

1. (4) Review of contracts, leases, and brokerage agreements upon execution by all parties to the contract, lease, or brokerage agreement;
2. (5) Use and limitations of unlicensed personal assistants or resident managers;
3. (6) Disclosure of agency relationships by licensees in residential real estate transactions;
4. (7) Distribution and dissemination of information on new or amended requirements in the real estate licensing and real property laws, rules, and regulations of the governments and regulatory agencies of the District, the federal government, and adjacent states and municipalities;
5. (8) The obligation of all licensees to comply with all applicable provisions of the Second Omnibus Regulatory Reform Act of 1998, effective April 20, 1999 (D.C. Law 12-261; D.C. Official Code § 47-2853.01 et seq.), the District of Columbia Real Estate Licensure Act of 1982, effective March 10, 1983 (D.C. Law 4-209; D.C. Official Code § 42-1701 et seq.), as amended, and the Code of Ethics in this chapter;
6. (9) Requirements, restrictions, and limitations applicable to the sale or lease of real property personally owned by a licensee and the purchase or lease of real property by a licensee for the licensee's personal use; and
7. (10) The unauthorized practice of law by a licensee.(d) Evidence of the following:- (1) Records of attendance at staff meetings;
8. (2) Review by the broker, branch office manager, or designee of the broker or branch office manager of contracts of sale, leases, and brokerage agreements executed by all parties to the contract, lease, or brokerage agreement;
9. (3) Review by the broker, branch office manager, or designee of the broker or manager of advertisements to be placed by licensees affiliated with the broker;
10. (4) Compliance with the written policies and procedures of subsection (c) of this section; and
11. (5) Dissemination of the written policies and procedures listed in subsection (c) of this section to licensees affiliated with the broker.

2614.8 Upon a showing that the broker has not provided reasonable and adequate supervision in the areas under this section of this chapter, the burden of proof shall be on the broker to show that the supervision that the broker did provide was reasonable and adequate.

SOURCE: Final Rulemaking published at 52 DCR 6962 (July 29, 2005).