PURPOSE: This rule informs licensees of the procedures they need to follow when closing a real estate firm.

1. (1) Voluntary Closing.

   1. (A) Unless specifically approved otherwise by the commission, a real estate brokerage firm shall be closed in the following manner. The individual broker or the designated broker shall—

      1. 1. Notify the commission in writing

upon closing of the firm. The following information must be submitted on a form provided by the commission:

1. A. The date of the firm’s closing;
2. B. The location where the records and

files will be stored for a minimum of three (3) years;

1. C. The name, address and phone

number of the custodian who will be storing the records and files; and

1. D. A list of all pending transactions,

stating the names, addresses and telephone numbers of all buyers, sellers or property owners;

1. 2. Notify all licensees associated with

the firm in writing of the effective date of closing. The licenses of any licensees associated with the firm at the time of closing must be returned with the closing statement;

1. 3. Notify all current listing buyer, or

tenant agreement and management contract clients as well as parties and co-brokers to existing contracts, in writing, advising of the date the firm will close. All listing, buyer, tenant and management clients must be advised in writing that they may enter into a new listing, buyer, tenant or management agreement with the broker of their choice;

1. 4. Remove all advertising signs from all

properties which were listed with or managed by the firm. Arrange to cancel all advertising in the name of the firm, including office signs and telephone listing advertisements;

1. 5. Maintain all escrow or trust accounts

until all monies are transferred to a title company, an escrow company or an attorney for closing of the transaction, or are otherwise properly disbursed as agreed to in writing by the parties having an interest in the funds;

1. 6. Arrange for pending contracts to be

closed by a title company, a lending institution, an escrow company or an attorney. In the case of a sale, transfer or merger of an existing brokerage, the acquiring broker may close the pending transactions acquired from the selling broker after having first obtained the express written consent of all parties to the transactions. Notify all parties involved in pending transactions as to the name, address and telephone number of the closing agent. Notify the commission of the name, address and telephone number of the closing agent; and

1. 7. Sign the closing form stating that all

of the previously mentioned terms have been met.

1. (2) Revocation/Suspension.

   1. (A) Sole-Proprietorship/Individual Broker. Upon the revocation or suspension of a broker’s license, the broker shall—

      1. 1. Cease all brokerage business immedi-

ately upon the effective date of the suspension or revocation order;

1. 2. Notify the commission of the location

where records and files will be stored, as well as the name, address and phone number of the custodian who will be storing the records and files. In case of revocation, storage for all records and files is to be arranged for a minimum of three (3) years. In case of suspension, storage is to be arranged for the duration of the suspension;

1. 3. Notify, if the license of the broker has

been suspended, all licensees associated with the firm and return all licenses held by the broker to the commission;

1. 4. Notify all current listing, buyer or

tenant agreement, and management contract clients in writing advising of the date the firm will close or suspend activity, and that they may enter into a new listing, buyer or tenant agreement or management agreement with the firm of their choice;

1. 5. Remove all advertising signs from all

properties except the firm’s office which were listed with or managed by the firm;

1. 6. Cancel or suspend all advertising and

telephone listing advertisements. In case of suspension, post a notice on the outside of the office in a prominent location clearly visible to the public which cites all applicable violations. In case of revocation, the licensee shall remove all office signs visible to the public;

1. 7. Maintain all escrow or trust accounts

until all monies are transferred to a title company, a lending institution, an escrow company or an attorney for closing the transaction, or are otherwise properly disbursed as agreed to in writing by the parties having an interest in the funds;

1. 8. Arrange for pending contracts to be

closed by a title company, a lending institution, an escrow company or an attorney. Notify all parties involved in pending transactions as to the name, address and telephone number of the closing agent. Notify the commission in writing of the name, address and telephone number of the closing agent;

1. 9. Accept no compensation related to the

real estate transactions during the suspension except compensation for acts which were performed during the period in which the broker was properly licensed;

1. 10. Notify, in writing, all listing and

management clients as well as parties and cobrokers to existing contracts, advising of the date of suspension. All listing and management clients must be advised that they may enter into a new listing or management agreement with the firm of their choice;

1. 11. Answer no telephones in a suspend-

ed broker’s office in any manner to imply that the broker is a currently active real estate firm;

1. 12. Return all property belonging to oth-

ers which is held by the broker;

1. 13. Comply with all of the terms of

(2)(A)1.–12. on or before the effective date of revocation or suspension; and

1. 14. Provide the commission with an

affidavit stating that all of the previously mentioned terms have been met.

1. (B) Corporation, Association or Partnership. Upon the revocation or suspension of a broker’s license issued to a corporation, association or partnership, the designated broker shall—

   1. 1. Cease all brokerage business immedi-

ately upon the effective date of the suspension or revocation order;

1. 2. Notify the commission of the location

where the broker’s records and files will be stored, as well as the name, address and 20 CSR 2250-8

phone number of the custodian who will be storing the records and files. In case of revocation, storage for all records and files must be arranged for a minimum of three (3) years. In the case of suspension, storage for all records and files is to be arranged for the duration of the suspension;

1. 3. Return, if both the license of the des-

ignated broker and the firm have been suspended, all licenses to the commission;

1. 4. Notify all listing and management

clients in writing advising of the effective date of the suspension or revocation, and that they may enter into a new listing or management agreement with the firm of their choice;

1. 5. Remove all advertising signs from all

properties which were listed with or managed by the firm;

1. 6. Maintain all escrow or trust accounts

until all monies are transferred to a title company, a lending institution, an escrow company or an attorney for closing the transactions, or are otherwise properly disbursed as agreed to in writing by the parties having an interest in the funds;

1. 7. Compensate only for acts which were

performed during the period in which the partnership, corporation or association was properly licensed;

1. 8. Arrange for all pending contracts to

be closed by a title company, a lending institution, escrow company or an attorney. Notify all parties involved in pending transactions as to the name, address and telephone number of the closing agent. Notify the commission of the name, address and telephone number of the closing agent;

1. 9. Comply with all of the terms of para-

graphs (2)(B)1.–8. on or before the effective date of revocation or suspension; and

1. 10. Provide the commission with an affi-

davit stating that all of the previously mentioned terms have been met.

1. (3) Closing as a Result of Death or Disability. Upon the death or disability of a broker in which the affairs of the broker, partnership, corporation or association cannot be carried on, the following procedures shall apply:

   1. (A) Sole-Proprietorship/Individual Broker.

      1. 1. All licensees associated with the bro-

ker must cease all brokerage activity until their licenses have been transferred to another broker.

1. 2. The administrator or executor of the

broker’s estate or the legal representative of the broker may conclude pending business, according to the provisions of section 339.040.8, RSMo.

1. 3. The administrator or executor of the

broker’s estate or the legal representative of FINANCIAL INSTITUTIONS AND PROFESSIONAL REGISTRATION

the broker may follow the procedures established in section (1) for voluntary closing;

1. (B) Corporation, Partnership or Association. Upon the death or incapacity of one (1) or more of the licensed broker-officers, broker-partners or broker-associates of a real estate corporation, partnership or association in which the affairs of the broker, partnership, corporation or association cannot be carried on, the following procedures shall apply:

   1. 1. The administrator or executor of the

broker’s estate or the legal representative of the broker may conclude pending business, according to the provisions of section 339.040.8, RSMo;

1. 2. The administrator or executor of the

broker’s estate or the legal representative of the broker may follow the procedures established in section (1) for voluntary closing;

1. 3. The commission must be notified

immediately of any change in the designated broker; and

1. 4. If a new designated broker is named,

the new broker must submit an affidavit to the commission attesting that all steps under the voluntary closing procedure are completed within thirty (30) days after the date of the prior broker’s death or disability; and

1. (C) In all previously mentioned cases, the administrator or executor of the estate or the legal representative of the broker shall arrange to retain the business records of the broker for a period of at least three (3) years, in compliance with 4 CSR 250-8.160.

AUTHORITY: section 339.120, RSMo 2000.* This rule originally filed as 4 CSR 250-8.155. Original rule filed June 16, 1989, effective Sept. 28, 1989. Amended: Filed Feb. 2, 1994, effective Aug. 28, 1994. Amended: Filed Dec. 1, 1997, effective Sept. 1, 1998. Amended: Filed June 28, 2002, effective Dec. 30, 2002. Moved to 20 CSR 2250-8.155, effective Aug. 28, 2006.

*Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993, 1995, 1999.