DEPARTMENT OF LABOR AND ECONOMIC GROWTH

                          DIRECTOR'S OFFICE

            REAL ESTATE BROKERS AND SALESPERSONS - GENERAL RULES


(By authority conferred on the  director  of  the  department  of  labor  and 
economic growth by sections 205, 308, and 2504 of 1980 PA 299,  MCL  339.205, 
339.308 and 339.2504 and Executive  Reorganization  Orders  No.  1996-2,  MCL 
445.2001, and 2003-1, MCL 445.2011)


                         PART 1. GENERAL PROVISIONS


R 339.22101    Definitions.
  Rule 101. (1) As used in these rules:
  (a)  "Approved as determined by the department" or "approval as  determined 
by the department" means review and approval by the department or review by a 
statewide real estate related trade association designated by the  department 
pursuant to section 210 of the code, recommendation  by  the  statewide  real 
estate related trade association to the department, and final approval by the 
department.
  (b)  "Association" as referred to in section 2505 (1) of the code  includes 
a limited liability company.
  (c)  "Classroom" means either:
  (i)  A  physical  location  where  educational  courses  are  offered   and 
students and instructor are present.
  (ii)  A location where a student receives instruction  through   electronic 
means.
  (d)  "Clock hour" means a period of not fewer than 50  minutes  of   actual 
classroom instruction, not including outside assignments  and  reading.   For 
distance learning systems, "clock  hour"  means  the  amount  of  material  a 
student can process in 50 minutes of computerized instruction.
  (e)  "Code" means 1980 P.A. 299, MCL 339.101 et seq.
  (f)  "Continuing education course" means a course that is  represented   as 
fulfilling the requirements of section 2504(4) of the code.
  (g)  "Coordinator" means the individual  who  assumes  the   responsibility 
under these rules for offering approved courses.
  (h)  "Credit hour" means  not  fewer  than  10  clock  hours  of   approved 
educational courses.
  (i)  "Distance learning" means either of the following:
  (i)  Approved courses where  instructor  and  student  may  be  apart   and 
instruction takes place through other media.
  (ii)   Approved courses which include but are not limited  to   instruction 
presented  through  interactive  classrooms,   computer   conferencing,   and 
interactive computer systems and which fulfill the  requirements  of  section 
2504(4) of the code.
  (j)  "Directly" means in a  direct  way  marked  by  the  absence  of   any 
intervention, instrumentality, or influence; not concealed, not disguised.
  (k)  "Electronic communication" means  a  communication  created,   stored, 
generated, received, or transmitted by electronic  means  in  a  format  that 
allows text to be visually displayed or printed.
  (l)  "Indirectly" means not resulting or occurring directly  from   obvious 
means or cause; remotely connected, concealed, or disguised.
  (m)  "Instructor" means an  individual  who  assumes  responsibility  under 
these rules for instructing an approved course.  Instructors shall possess at 
least 1 of the following minimum qualifications:
  (i)  Be an instructor of real estate courses who is or has been engaged  in 
the practice of teaching at an accredited institution of higher learning.
  (ii)  Be a person properly licensed or  certified  by  the  department   or 
other governmental agency who is  engaged  in  the  real  estate  aspects  of 
appraising,  financing,  marketing,  brokerage  management,   real   property 
management, real estate counseling,  real  property  law,  or  other  related 
subjects.
  (iii)  Be a person who possesses alternative  qualifications  approved   by 
the department, and  is  qualified  by  experience,  education,  or  both  to 
supervise and instruct a course of study.
  (n) "Licensee" means a person who is licensed under article 25 of the code.
  (o) "Non-principal associate broker," referenced in sections 2508 (4)   and 
2509 (3) of the code, means an individual who is not a  sole  proprietor,  an 
officer or equity owner, a  member,  manager,  or  general  partner,  in  the 
association, partnership, corporation, or  other  entity  authorized  by  the 
state of Michigan under which the business is organized.
  (p)  "Principal associate broker," referenced in sections 2508 and 2509  of 
the code, means an individual who is  a  sole  proprietor,  member,  manager, 
general partner, equity owner, or officer of  the  corporation,  association, 
general partnership, or other entity authorized  by  the  state  of  Michigan 
under which the business is organized.
  (q)  "Prelicensure real estate course" or "prelicensure  course"  means   a 
course that is represented to the public as fulfilling, in whole or in  part, 
the requirements of section 2504 (l) and (2) of the code.
  (r)  "Real estate school" or "institution" means an approved entity   which 
represents to the public that any of its courses  fulfill,  in  whole  or  in 
part, the  requirements  of  section  2504  (l)  and  (2)  of  the  code  for 
prelicensure education.  The entity shall also meet the requirements  as  set 
forth in section 2504 (8) of the code.
  (s)  "Service provision agreement" means an agreement between  the   broker 
and client  which  establishes  an  agency  relationship  through  a  listing 
agreement or a buyer agency agreement.
  (t)  "Sponsor" means a person, as defined in section 105 (5) of the   code, 
and approved as determined by the department, which represents to the  public 
that any of its courses fulfill the requirements of section 2504 (4)  of  the 
code for continuing education.
  (u)  "Student" means a member of the public or a licensee who is  attending 
an approved course designed to fulfill the requirements of  section  2504  of 
the code.
  (v) "Supervision," as defined in R 339.22310, means the overseeing of,   or 
participation in, the work of another licensed  individual  by  a  broker  or 
associate broker.
  (w) "Transfer" means a process used by a   salesperson   or   non-principal 
associate broker to apply for and receive a license  issued  to  a  different 
employing broker.
  (2)  Terms defined in sections 103, 105, and 2501 of the  code   have   the 
same meanings when used in these rules.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7; Eff. Aug. 4,  1997;  2002 
MR 16, Eff. Sept. 4, 2002.


R 339.22103    Board meetings.
  Rule 103.  Board meetings are held in accordance with 1976 P.A.  267,   MCL 
15.261 et seq. and are open to the public.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22199    Rescission.
  Rule  199.  R 338.2601  to  R 338.2619,  R 338.2701,   R 338.2703,   and  R 
338.2721 to R 338.2786 of the  Michigan  Administrative  Code,  appearing  on 
pages  2569  to  2585  of  the  1979  Michigan   Administrative   Code,   are 
rescinded.

  History:  1991 MR 4, Eff. May 1, 1991.


                           PART 2. LICENSING


R 339.22201    Application; eligibility.
  Rule 201. (1)  A license shall not be issued to an individual who is   less 
than 18 years old.
  (2)  A broker license shall be issued  to  a  legal  entity  only  if   the 
individual who holds the broker license is identified on the application as 1 
of the following:
  (a)  A sole proprietor.
  (b)  A partner in the partnership.
  (c)  A partner in a limited partnership.
  (d)  An officer for the corporation.
  (e)  A member or manager for the association.
  (f)  A holder of a responsible position of authority in  any  other   legal 
entity authorized by the state  of  Michigan  under  which  the  business  is 
organized.
  (3)  Associate broker and salesperson licenses shall  only  be  issued   to 
individuals.
  (4)   Associate  brokers  shall  have  met  the  requirements  for   broker 
licensure.
  (5)  The department may require an applicant to submit a  report  from   an 
independent source pertaining to his or  her  previous  occupation,  criminal 
record, or any other information material to the  applicant's  qualifications 
for licensure.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22203     Validity  of  broker  education;  validity   of   salesperson 
education.
  Rule 203. (1) An applicant for a broker or associate broker  license  shall 
have completed 90 clock hours of qualifying   prelicensure   education   of   
which  9 clock hours shall be on civil rights law and fair  housing  law,  as 
defined  in section  2504  (1)  of  the  code.   The  broker   prelicensure   
education  shall  be completed not more than 36 months  before  the  date  of 
application, unless  the applicant has held a license as  a  salesperson  for 
that intervening period.
  (2) Acceptable courses  for  prelicensure  education  shall  meet  criteria 
established by the department, but may  be  reviewed  and  preapproved  by  a 
statewide real estate trade association for subject matter  relevant  to  the 
practice of real estate.  Not more than 1 broker course on the  same  subject 
will be accepted for credit.
  (3) In meeting the broker prelicensure education requirements, credit shall 
be given for either of the following:
  (a) Possession of a law degree, obtained at any time  before  the  date  of 
application, shall be equated to 60 clock  hours  of  real  estate  education 
which includes 6 hours of instruction in civil rights law  and  fair  housing 
law.
  (b) Possession of a master's degree  in  business  administration  from  an 
accredited institution of higher learning shall be equated to 60 clock  hours 
of real estate education.
  (4) An applicant for a salesperson license shall have  completed  40  clock 
hours of qualifying prelicensure education of which 4 clock hours shall be on 
civil rights law and fair housing law, as defined in section 2504(2)  of  the 
code.  The salesperson prelicensure education shall  be  completed  not  more 
than 36 months before the date of application.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002; 2007 
MR 2, Eff. Jan. 29, 2007.


R 339.22205    Acceptable, related experience for broker applicants.
  Rule 205. (1)  For purposes  of  calculating  the  time  during  which   an 
applicant for a license as a broker or associate broker has been  engaged  in 
the real estate business as required by section 2505 (5)  of  the  code,  the 
following credit shall be granted by the department:
  (a)  Real estate salesperson or  broker:  One  year  of  credit  for   each 
12-month period of licensure in which 6 or more real estate transactions,  as 
defined in section 2501(b) of the code, are verified.
  (b)  Builder: One year of credit for  each  12-month  period  in  which   6 
residential units, or 6  commercial  units,  or  6  industrial  units,  or  a 
combination thereof,  were  built  and  personally  sold  or  leased  by  the 
applicant.
  (c)  Investor: Six months of credit for each 6 real property   transactions 
personally negotiated for a purchase or sale by the applicant for his or  her 
own account with a maximum of 1 year  of  credit  allowed.   However,  credit 
shall not be granted if the applicant has more than 6 sales in  any  12-month 
period in violation of the provisions of R 339.22319.
  (d)  Land or condominium  developers:  One  year  of  credit  for  each   2 
developments or subdivisions containing not fewer than 10  units  or  parcels 
which the applicant has bought, subdivided, and improved for sale as lots  or 
dwellings.
  (e)  Attorneys: One year of experience for  each  year  in  which  6   real 
estate transactions were conducted as an attorney.
  (f)  Related occupations:  One year of credit for each  period   equivalent 
to 40 hours per week, 48 weeks per year, in which the applicant has worked in 
a capacity directly related to the acquisition,  financing,   or   conveyance 
of real estate, or positions in which  the  applicant  has   been    directly 
involved in real estate business including  serving  as  the  decision-making 
authority in any of the following positions:
  (i)  A loan or trust officer of a federal  or  state-regulated   depository 
institution.
  (ii)  A loan or trust officer of a mortgage company.
  (iii)  A real estate officer of a corporation, which  is  not  a   licensed 
real estate broker.
  (iv)  A title insurance company officer engaged in the closing  of   escrow 
accounts and real estate closings.
  (v)  A staff or real property appraiser.
  (2)  Where state law requires a  person  to  be  licensed  to  perform   an 
activity, credit shall not be granted for experience obtained without  proper 
licensure.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22207    Examinations.
  Rule 207. (1)  A written examination is required of all applicants,  except 
as noted in this subrule.  Exceptions to the written examination requirements 
may be granted to any of the following:
  (a)  An applicant who qualifies under the Americans With Disabilities  Act, 
P.L.101-336,  42  U.S.C.  §§  12101   et   seq.,   may   request   reasonable 
accommodations to take the exam.
  (b)  An applicant for a license who, within the last 3 years, has  held   a 
license as a salesperson, broker, or associate broker.
  (c) An applicant for a broker  or  associate  broker  license  who,   after 
surrendering a broker or associate  broker  license,  has  been  continuously 
licensed as a salesperson since the surrender.
  (2)   A  passing  score  on  an  examination,  or  on  a  portion   of   an 
examination, if the examination is given in separate parts,  shall  be  valid 
for 1 year from the date of examination.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22209    Conversion and transfer of license.
  Rule 209. (1)  A broker or associate broker license shall not be  converted 
into a salesperson license, and a salesperson license shall not be  converted 
into a broker or associate broker license.
  (2)  A salesperson shall be licensed to a broker and shall not be  licensed 
to more than 1 broker at the same time.  A salesperson shall not be  licensed 
as a broker or associate broker while he or she holds a salesperson license.
  (3)  To be licensed to another  broker  as  a  salesperson,  a  broker   or 
associate broker shall surrender  his  or  her  broker  or  associate  broker 
licenses and apply for a salesperson license.  To return to being a broker or 
associate broker, the salesperson shall  surrender  his  or  her  salesperson 
license and apply for the broker or associate broker license.
  (4)  An individual broker license is not transferable  to  a   corporation, 
partnership,  association,  common  law  trust,  or  a  combination  of  such 
entities, and the broker license of a corporation, partnership,  association, 
common law trust, or a combination of such entities is not transferable to an 
individual.  A  broker  license  is  not  transferable.   The  license  of  a 
principal  associate  broker  is  not  transferable.   The   license   of   a 
non-principal associate broker or a salesperson is transferable in accordance 
with section 2508 (4) of the code, and R 339.22101 and R 339.22211.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22211    Transfer  of   salespersons   or    non-principal    associate 
brokers license; transfer of pocket card and wall license.
  Rule 211. (1)  An applicant for a salesperson or  non-principal   associate 
broker license who desires to transfer to a different employing broker before 
the issuance of the  original  license  shall  file  a  new  application  for 
licensure.
  (2)  A salesperson or non-principal associate broker shall submit a  signed 
statement to the department that he or she has obtained the  dated  signature 
and license number of his or her new broker on the reverse side of the pocket 
card.
  (3)  Upon receipt of the completed  application  for  transfer   to  a  new 
broker, the proper fees, and  the   old   license,   the   department   shall 
consider the pocket card proper evidence of licensing for 45  days  from  the 
latest date written on the back of the card.  If the  applicant  is  notified 
that the application is incomplete, or the  broker  to  whom  he  or  she  is 
transferring is not licensed, the pocket card shall no longer  be  valid  and 
the applicant shall wait until the new broker receives the wall  license  and 
pocket card before engaging in regulated activities.
  (4)  The ability to conduct regulated  activities  using  the  signed   and 
dated pocket card  may  continue  only  if  a  salesperson  transfer  or  new 
associate broker application is received within 45 days from the date on  the 
pocket card.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22213  License renewal; late renewal.
  Rule 213. (1) An applicant for renewal of a license may continue to operate 
as previously licensed, using the expired wall license  and  pocket  card  as 
evidence of proper licensing, if the applicant has met both of the  following 
conditions by the expiration date:
  (a) Submitted a complete application for renewal and the required fee.
  (b) Completed the required continuing education.
  (2)  An  applicant  for  renewal  whose  application  is  received  by  the 
department after the expiration date shall not operate until the  applicant's 
employing broker receives his or her new license and pocket card.
  (3) A person who fails to renew a license within  60  days  of  expiration, 
shall apply for relicensure in accordance with sections 2504(5) and 411(4) of 
the code.
  (4) Completion of continuing education for relicensure shall not qualify as 
completion of the continuing  education  requirement  for  the  next  license 
renewal.
  (5) Unless a relicensure applicant has completed 6 clock hours of  approved 
continuing education for every year since a license has lapsed, the applicant 
shall successfully complete any education or examination used to qualify  for 
relicensure within 12 months before the applicant applies for relicensure.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002; 2007 
MR 2, Eff. Jan. 29, 2007.


R 339.22215     Application   for   new   license   after    revocation    of 
previous license.
  Rule 215.  A person whose license has been revoked shall not apply  for   a 
new license for at least 3 years after the service of the final order.  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.  Credit for  education,  examinations,  or  experience  obtained 
before the revocation shall not be granted.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


                       PART 3. PRACTICE AND CONDUCT

R 339.22301    Assumed names.
  Rule 301. (1)  A broker shall not conduct business or  advertise  under   a 
name other than that in which the license is issued.
  (2)  An individual broker or a partnership desiring to  operate  under   an 
assumed name shall send to the department, with the application for a  broker 
license, a copy of the certificate of assumed name which is certified by  the 
clerk of the county where the certificate is on file.  A broker applicant who 
is a legal entity shall  submit  a  certificate  of  assumed  name  with  the 
application certified by the proper state authority.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22305    Service provision agreement.
  Rule 305. (1)  A broker or a licensee acting on behalf  of  the   employing 
broker who enters into a service provision agreement with a party or  parties 
shall provide, at the time of signing a true executed copy of  the  agreement 
to the party or parties signing the  agreement.   Every  agreement  shall  be 
fully completed by the licensee before the party or parties sign it.
  (2)  A service provision agreement shall  include  a  definite   expiration 
date and shall not contain  a  provision  requiring  the  party  signing  the 
agreement to notify the  broker  of  the  party's  intention  to  cancel  the 
agreement upon or after the expiration date.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22307    Delivery of offer to  purchase   to   buyer;    delivery    of 
written offers to seller; delivery of copies  of  acceptance  to  buyer   and 
seller; inclusion of terms and conditions in offer to purchase.
  Rule 307. (1)  A licensee shall deliver to the buyer a signed copy of   the 
offer to purchase immediately after it has been signed by the buyer.
  (2)  A licensee shall promptly deliver all written offers to  purchase   to 
the seller upon receipt.  Acceptable methods of delivery include, but are not 
limited to, either of the following:
  (a)  Delivery in person or by mail.
  (b)  Delivery by electronic communication as defined in 2000 P.A. 305,  MCL 
450.831 et seq.  The use of electronic records or digital signatures for  any 
real estate transaction requires the prior agreement of the parties.
  (3)  Upon obtaining a proper acceptance of the offer to  purchase,   signed 
by the seller, the licensee shall promptly deliver true  executed  copies  of 
the acceptance to the purchaser and seller.
  (4)  A licensee shall make certain that all terms and  conditions  of   the 
real estate transaction are included in the offer to purchase.
  (5)  A licensee shall not be subject to disciplinary action for failing  to 
submit to the seller any additional offers to  purchase  which  are  received 
after  the seller has accepted an offer and  the  sales  agreement  is  fully
 executed, unless a service provision  agreement  requires  that   subsequent 
offers  be presented.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22309    Licensee's recommendation to purchaser.
  Rule 309.  A licensee who is involved at the time of execution of an  offer 
to purchase in a real estate transaction shall  recommend  to  the  purchaser 
that a fee title policy in the amount of the purchase price be  furnished  to 
the purchaser by the seller, issued or certified to the approximate  date  of 
the closing of the real estate transaction.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22310    Supervision.
  Rule 310.  A broker or associate broker shall  supervise  the  work  of   a 
licensee.  Supervision shall include, at a minimum, 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 supervised licensee.
  (c)  Review of the supervised licensee's reports.
  (d)  Analyses and guidance of  the  licensee's  performance  in   regulated 
activities.
  (e)  Provision of written operating policies and procedures.

  History: 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22311    Closing transactions.
  Rule 311. (1)  The broker or associate  broker  who  is  involved  at   the 
closing of a real estate or business opportunity transaction, shall  furnish, 
or cause to be furnished, to the buyer and seller, a  complete  and  detailed 
closing statement signed by the broker or associate broker showing each party 
all receipts and disbursements affecting  that  party.   If  the  closing  is 
conducted at a regulated depository institution, a title  company,  or  other 
closing entity, the broker or associate broker is still responsible  for  the 
content of the closing statement and shall sign the final closing document.
  (2)  A salesperson shall not close a real estate or  business   opportunity 
transaction  unless  under  the  supervision  of  the  broker  to  whom   the 
salesperson is licensed.  The broker or associate broker  shall  assume  full 
responsibility for execution  of  the  closing  statements  prepared  by  the 
salesperson or other persons acting under the broker's or associate  broker's 
direct supervision.
  (3)  Without written approval of the seller and buyer,  a  licensee   shall 
not close a transaction contrary  to  terms  or  conditions  of  an  executed 
agreement.
  (4)  In a cooperative transaction, either  the  broker  or  the   associate 
broker may close the sale and furnish closing statements; however, it is  the 
final responsibility of the listing broker or associate broker to  close  the 
sale and furnish signed closing statements to both the buyer and the seller.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22313    Trust accounts.
  Rule 313. (1)  Trust or escrow accounts  shall  be  maintained  in   demand 
accounts only.  Checks drawn on the trust or escrow accounts shall be  signed 
by a broker or an associate broker.   Cosignatories may be used; however, the 
signature of a broker or associate broker shall accompany this signature.
  (2)  A broker shall maintain a non-interest-bearing demand  trust   account 
when any earnest money deposits or money belonging to others comes  into  his 
or her possession.  The account shall be maintained in  accordance  with  the 
requirements of section 2512 (J) of the code.
  (3)  A broker may maintain more  than  1  trust  account.   A  broker   may 
maintain the broker's own funds in an account that is not more  than  $500.00 
in each trust account to cover bank service charges and bank minimum  balance 
requirements or to avoid the account being closed when  there  are  no  other 
funds in the account. The funds shall  be  accounted  for  in  a  bookkeeping 
system as described in subrule (4) of this rule.
  (4)  A broker shall maintain a bookkeeping system in  the  office.   At   a 
minimum, the system shall consist of both of the following:
  (a)  A record which shows the chronological sequence in  which  funds   are 
received and disbursed, as follows:
  (i)  For funds received, the record shall include  all  of  the   following 
information:
  (A)  The date of receipt and date of deposit.
  (B)  The name of the party who provided the funds to the broker.
  (C)  The name of the seller.
  (D)  The amount of the funds.
  (ii)  For funds disbursed, the record shall include all of  the   following 
information:
  (A)  The date of the disbursement.
  (B)  The payee.
  (C)  The check number.
  (D)  The purpose of the disbursement.
  (E)  The amount of the disbursement.
  (iii)  A current balance of the account or accounts  shall  be   maintained 
and be available to the department upon request.
  (b)  A record which shows receipts and  disbursements  as  they  affect   a 
single, particular transaction between a buyer and seller.  The record  shall 
segregate 1 transaction from another transaction, as follows:
  (i)  For funds received, the record shall include  all  of  the   following 
information:
  (A)  The names of both parties to a transaction.
  (B)  The property address or brief legal description.
  (C)  The dates and amounts received.
  (ii)  For funds disbursed, the record shall include all of  the   following 
information:
  (A)  The date.
  (B)  The payee.
  (C)  The check number.
  (D)  The amount of the disbursement.
  (5)  All trust or escrow account records shall be maintained for a   period 
of not less than 3 years from the date of inception of the records.
  (6)   Disbursement  of  an  earnest  money  deposit  shall  be   made    at 
consummation or termination of the agreement in accordance with the agreement 
signed by the parties.  However, any deposit in  the  trust  account  of  the 
broker for which the buyer and seller have made claim  shall  remain  in  the 
broker's trust account until a  civil  action  has  determined  to  whom  the 
deposit must be paid, or until the buyer and seller have agreed, in  writing, 
to the disposition of the deposit.  The broker  may  also  commence  a  civil 
action to interplead the deposit with the proper court.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22315    Licensee buying or acquiring interest in property; intent.
  Rule 315. (1)  When  buying  or  acquiring,  directly  or  indirectly,   an 
interest in a property, a licensee shall disclose the  fact  of  his  or  her 
licensure as a real estate broker, associate broker, or salesperson  clearly, 
in writing, to the owner before the owner  is  asked  to  sign  the  purchase 
agreement.
  (2)  When a licensee  acquires,  directly  or  indirectly,  an  option   to 
purchase a particular property from an owner  who  requested  the  licensee's 
services as a real estate licensee, the licensee shall disclose the  fact  of 
his  or  her  licensure  as  a  real  estate  broker,  associate  broker,  or 
salesperson, in writing, to the owner before the owner is asked to  sign  the 
option agreement.
  (3)  A licensee shall not become  a  party  to  a  net  service   provision 
agreement for an owner, seller, or buyer as a means of securing a real estate 
commission.
  (4)  A licensee shall provide written proof of  any  required   disclosures 
upon request of the department.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22317     Licensee  buying  or  acquiring   interest    in    property; 
commission; consent by seller.
  Rule 317.  A licensee who  buys  or  acquires  an  interest  in   property, 
directly or indirectly, and who is due a commission, fee, or  other  valuable 
consideration as a result of the sale shall comply with all of the  following 
provisions before compensation is received:
  (a)  Disclose, in writing, to the seller or owner that the  licensee   will 
be compensated for the sale.
  (b)  Obtain the written permission from the seller or owner to receive  the 
specified consideration.
  (c)  Provide written proof of compliance upon request by the department.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22319    Licensure required for owner of  real   estate   engaging   in 
sale as principal vocation; acts constituting principal  vocation;   sale  of 
real estate owned  by  broker  or  associate  broker;  licensee   to   reveal 
ownership or  interest  when  selling   property   licensee   owns   or   has 
interest in.
  Rule 319. (1) Licensure as a real estate broker is required of an  owner of 
real estate who engages in the sale   of   real   estate   as   a   principal 
vocation, unless the owner engages the services of a real  estate  broker.
Acts constituting a principal vocation include any of the following:
  (a) Engaging in more than 5 real estate sales in any 12-month period.
  (b) Holding one's self out to the public as being  principally  engaged  in 
the sale of real estate.
  (c) Devoting over 50% of one's working time, or more than  15   hours   per 
week in any 6-month period, to the sale of real estate.
  (2) A sale of real estate by a real estate salesperson, other  than  his or 
her principal residence, shall be deemed  to   be   done   as   a   principal 
vocation of the salesperson and the  sale  shall  be   through   a   licensed 
broker.
  (3) Sales of real estate owned by, or  under  option  to,   a   broker   or 
associate broker are subject to the  provisions  of  the   code   and   these 
rules.
  (4) In selling property owned by a licensee or in which  a   licensee   has 
any interest, the licensee shall reveal the facts of his or her  ownership or 
interest and his or her licensure to the purchaser, in writing,   before  the 
offer to purchase   is   signed.   Satisfactory   written   proof   of   this 
disclosure  shall  be  provided  by  the  licensee  upon   request   by   the 
department.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22321    Licensee commissions for  other  services;   disclosure    and 
consent of buyer and seller required.
  Rule 321.  (1)  A licensee who is entitled to receive, either directly   or 
indirectly, a real estate commission as a result of the sale of property, may 
not also receive a referral fee or other valuable consideration for placing a 
loan in connection with that transaction  unless  the  licensee  obtains  the 
prior written consent of the buyer and seller in that transaction and the fee 
is not otherwise prohibited by the real estate settlement procedures  act  of 
1974, 12 U.S.C. 2601 et seq., or other applicable law.
  (2)  A licensee who is entitled to receive, either directly or  indirectly, 
a real estate commission as a result of the sale of property,  may  not  also 
receive a referral fee or other valuable consideration from an abstract, home 
warranty, title insurance, or other settlement service provider in connection 
with that transaction unless the licensee obtains the prior  written  consent 
of the party or parties with whom the licensee has an agency relationship and 
the fee is not otherwise prohibited by the real estate settlement  procedures 
act of 1974, 12 U.S.C. 2601 et seq., or other applicable law.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22323    Broker's  place  of  business;   location;    branch    office 
license; supervision and management of branch office.
  Rule 323.  (1)  A broker shall maintain a place of business in this   state 
which is an actual and established physical location from  which  the  broker 
can and does conduct the broker's business and where the broker's  books  and 
records are maintained.
  (2)  A license for a  branch  office  is  required  for  any  location   in 
addition to the principal business location which, by advertising or signs or 
otherwise, is held out to the public as a place where  clients  or  customers 
may do business or consult with a licensee.
  (3)  An individual broker, associate broker, or an  associate  broker   who 
manages a branch office shall be reasonably available  to  supervise  and  to 
manage the business during regular business hours, in accordance with section 
2505 (3) of the code.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22325    Contract  with  licensee  abrogating  broker's    authority to 
supervise licensee prohibited.
  Rule 325. A broker shall not contract with an  individual  salesperson   or 
non-principal associate broker who is licensed to the broker so  as  to  lose 
the authority to supervise the licensee.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22327    Display of broker license; pocket card.
  Rule 327. (1) A broker  shall  display  the  broker's   license   and   the 
licenses of all salespersons and associate brokers  who   are   licensed   to 
that broker in a conspicuous position in the broker's   place   of   business 
that is obvious to the public.
  (2) A broker, associate broker, or salesperson shall not  serve   in   such 
capacity without having received his or her license and pocket  card   or   a 
temporary license. A licensee shall not render services  without  having,  on 
his or her person, a pocket  card  or  temporary  license   issued   by   the 
department.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22329    Advertising generally; advertising  of   property   owned   by 
brokers; advertising by salespersons;  advertising  of  property   owned   by 
salespersons.
  Rule 329. (1) Except as provided  in  subrule  (2)  of   this   rule,   all 
advertisements to buy, sell,  exchange,  rent,  lease,   or   mortgage   real 
estate or business opportunities by a broker shall   include   the   broker's 
name as licensed and telephone number or street  address.   All   advertising 
shall indicate affirmatively that the party advertising is  a   real   estate 
broker.
  (2) An individual licensed as a broker or associate  broker  may  advertise 
personally owned property for sale or for lease in his or   her   own   name, 
and need not use  the  name  of  the  broker  as   licensed.   However,   the 
advertising shall indicate affirmatively that the party  advertising   is   a 
licensed broker or associate broker.
  (3) Except as provided in subrule (4) of this  rule,   advertising   by   a 
salesperson or an associate broker shall be under the supervision of,  and in 
the licensed name of, the individual's broker.
  (4) A salesperson may only advertise to sell property under  his   or   her 
own name if the property is the principal residence of  the  salesperson.   A 
salesperson may only advertise property for rent or lease under  his  or  her 
own name if the salesperson is the owner of the property.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22333    Misrepresentation of material facts prohibited; disclosure  of 
material facts.
  Rule 333. (1)  A licensee shall not, directly or indirectly,   misrepresent 
material facts.
  (2)  A licensee's full disclosure to a buyer or seller of  material   facts 
within his or her knowledge about the condition of the  real  estate  offered 
shall not be grounds for disciplinary action, despite a claim by the buyer or 
seller that the disclosure constituted disloyalty to the buyer or  seller  in 
violation of an agency relationship.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22335    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 1997 MR 7, Eff. Aug.
4, 1997.


R 339.22337    Failure of listing broker to cooperate with other brokers.
  Rule 337.  Failure of the listing broker to cooperate with  other   brokers 
is not, in itself, a violation of law or these rules, unless the  broker  has 
indicated or implied to the buyer or seller that the broker  would  cooperate 
with other brokers.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22339     Payments   by    brokers     following     termination     of 
licensed relationship.
  Rule 339.  If an individual  earned  commissions  or  other  income   while 
licensed to a broker, it shall not be grounds for disciplinary  action  as  a 
violation of section 2512 of the code for  the  broker  to  pay  such  earned 
commissions  or  income  to  that  individual,  regardless  of  whether  that 
individual is now licensed to another broker or is no longer  licensed  under 
the code.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


                            PART 4. ENFORCEMENT


R 339.22401    Production by licensee of documents or records.
  Rule 401.  A licensee shall  provide  for  inspection,  by  an   authorized 
representative of the department, any document or record as may be reasonably 
necessary for investigation or audit in the enforcement of the code and these 
rules.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22403    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 1997 MR 7, Eff. Aug.
4, 1997.


R 339.22405    Suspension or revocation of licenses; forwarding of  pocket
  cards and licenses to department.
  Rule 405. A salesperson or associate broker, upon notice  of  suspension or 
revocation of his or her license,  shall  immediately  forward  his  or   her 
pocket card, and the broker to whom  the  individual   was   licensed   shall 
immediately forward the salesperson's or associate   broker's   license,   to 
the department. If the suspended or revoked license is that of  a  broker  or 
the associate broker who is the sole associate broker  for   a   partnership, 
corporation, association, common law  trust,  or  a   combination   of   such 
entities, the broker or associate broker shall forward  to   the   department 
his or her license and pocket card, the licenses and pocket  cards   of   all 
salespersons, except  as  provided  in  R  339.22211(2),   and   nonprincipal 
associate brokers issued under the  broker,  and  all   the   branch   office 
licenses.

  History:  1991 MR 4, Eff. May 1, 1991.


                   PART 5. OUT-OF-STATE LAND SALES


R 339.22501    Definitions.
  Rule 501. As used in this part:
  (a) "Advertising" means a pamphlet, circular, form  letter,   fact   sheet, 
sign, radio, television, telephone presentation or other script, newspaper or 
magazine  advertisement,   or   other   sales   literature   or   advertising 
communication addressed to  or  intended  for   distribution   to   potential 
subscribers or purchasers, including any other inducement.
  (b) "Engage in sales" means to sell, lease,  option,  or   assign   or   to 
promote sales, leases, options, or assignments. The phrase  also  means   any 
offer or solicitation of an offer to sell, lease, option, or assign.
  (c) "Promotional nature" means engaging in sales of more  than   25   lots, 
units, interests, or parcels by use of a common promotional plan.
  (d) "Property" means improved and unimproved  real   estate;   improvements 
thereon,  including  time  share,  interval   ownership,   or    right-to-use 
agreements located outside the State of Michigan; and any  interest  in   the 
improved or unimproved real estate.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22503    Broker compliance with code and rules required.
  Rule 503. Brokers who intend to engage in sales of a promotional  nature of 
property requiring prior approval of the department pursuant to section  2511 
of the code shall comply with the code and these rules.

  History:  1991 MR 4, Eff. May 1, 1991.



R 339.22505    Broker disclosure of physical characteristics of  property.
  Rule 505. The broker shall disclose fully and  accurately  to   prospective 
purchasers the physical characteristics of the  property  offered,  including 
any unusual or material circumstances or features affecting the  property.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22507    Submittal of particulars of property.
  Rule 507. A broker shall submit to the department   full   particulars   of 
the property, on forms provided by the department, which shall include all of 
the following information:
  (a) The name and principal address of the broker.
  (b) The name and principal address of the seller.
  (c) A general description of the property, stating the  number   of   lots, 
parcels, units, or interests in the offering.
  (d) The significant terms of any  encumbrances,   easements,   liens,   and 
restrictions,  including  zoning  and  other   regulations   affecting    the 
property and each lot, unit, parcel, or interest, and a  statement   of   all 
existing taxes and existing or proposed special  assessments   which   affect 
the property.
  (e) A statement of the use for which the property is offered.
  (f) Information concerning existing or  proposed  improvements,   including 
streets,  water  supply  levels,  drainage   control   systems,    irrigation 
systems,  sewage  disposal  systems,  and  customary   utilities,   and   the 
estimated cost, date of completion, and   responsibility   for   construction 
and maintenance of existing and proposed improvements which  are  referred to 
in connection with the  offering   or   disposition   of   any   lot,   unit, 
parcel, or interest in property.
  (g) A narrative description of the promotional plan for the  sale  of   the 
property, together with all advertising to be used.
  (h) A legal description of, based on a survey  by   a   professional   land 
surveyor, the total area included in the property, and a  statement  of   the 
topography thereof, together with a map showing the  division   proposed   or 
made; the dimensions of the lots, parcels, units, or   interests;   and   the 
relation  of  the  property  to  existing  streets,   roads,   and   off-site 
improvements.
  (i) A statement as to all of the following:
  (i) The present condition of access to the property.
  (ii) The availability on the property of sewage  disposal  facilities   and 
other public utilities, including water, electricity,  gas,   and   telephone 
facilities.
  (iii) The proximity, in miles, of the property to nearby municipalities.
  (iv) The nature of any improvements to be installed, by whom they are to be 
installed and paid for,   and   an   estimated   schedule   for   completion, 
together  with  a  statement  as  to  the    provisions    for    improvement 
maintenance.
  (j) Such additional information as may be required by  the  department   to 
assure full and fair disclosure to prospective purchasers.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22509    Provision of copies of sales instruments to department.
  Rule  509.  The  broker  shall  furnish  to  the   department   copies   of 
instruments which will be delivered to a purchaser to evidence  his  or   her 
interest in the property and of the contracts and other  agreements  which  a 
purchaser will be required to agree to or sign, together with  the  range  of 
selling prices, rents, or leases at which it is proposed to  dispose  of  the 
lots, units, parcels, or interests in the property.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22511    Submittal of proposed property report to department;  form.
  Rule 511. The broker shall submit a  proposed  property   report   to   the 
department on forms provided by the department.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22513    Property report; review by prospective purchaser; proof  of
  furnishing report.
  Rule 513. A broker shall furnish  a  property  report,  as  required  by  R 
339.22511, to prospective purchasers and afford a  reasonable  time  for  its 
review before a prospective  purchaser  signs  a  document   by   which   the 
purchaser becomes, or expresses  an  intention  to   become,   obligated   to 
purchase the property offered. A broker shall produce  satisfactory  proof of 
having  properly  furnished  a   property   report   upon   demand   by   the 
department.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22515    Filing requirements.
  Rule 515. (1)  For purposes of approval under section 2511  of  the   code, 
the broker shall submit a copy of  an  order  of  registration,  pursuant  to 
section 4 or 5 of 1972 P.A. 286, MCL 565.804 or 565.805, of the  property  to 
be sold, unless the property is exempt from such registration by section 4 or 
5 of that act.
  (2)  For those types of property or sales exempted  from  registration   by 
section 4 or 5 of 1972 P.A. 286, MCL 565.804 or  565.805,  the  broker  shall 
submit a copy of the filing currently effective with the office of interstate 
land sales registration pursuant to Public Law 90-448, 15 U.S.C. §§  1701  to 
1720.  The submission  shall  include  the  order  of  registration  and  the 
property report.
  (3) When  a  broker  engages  in  sales  or  the  promotion  of  sales   of 
condominiums exempt by section 4 or 5  of  1972  P.A.  286,  MCL  565.804  or 
565.805, the department may accept a submission of the filing and order  from 
the situs state under an act regulating condominiums  as  evidence  that  the 
broker has satisfied the requirements of R 339.22507.
  (4)  When the broker engages  in  the  sale  of  timeshare  or   membership 
interests, and all sales are conducted in the situs state, the department may 
accept a submission of the filing and order  from  the  situs  state  showing 
approval has been granted.  The submission may be evidence  that  the  broker 
has satisfied the requirements of R 339.22507.
  (5)  For out-of-state property offered through a Michigan  broker  in   the 
state of Michigan, the application for approval shall contain all information 
as specified in R 339.22501 through R 339.22513.
  (6)  For  purposes  of  approval  under  section  2511  of  the  code,   an 
application and fee for  approval  from  a  Michigan  licensed  broker  shall 
accompany  all   out-of-state   property   registrations,   including   those 
submissions that have been approved under 1972 P.A. 286, MCL 565.801 et seq.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22517    Investigation of applications; on-site inspections.
  Rule 517. Upon receipt of  a  broker's  application   for   approval,   the 
department shall investigate the matters contained therein   and   may   make 
on-site inspections of the property the broker intends to offer.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22519     Investigation  expenses  other   than   on-site    inspection 
expenses; deposit of estimated expenses for on-site inspection.
  Rule 519.  A broker shall pay the department a fee  of  $500.00  to   cover 
investigation  expenses  when  submitting  the  application  for   department 
approval. The fee does not include the cost of an on-site inspection.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22521    Deposit of estimated expenses for on-site inspection.
  Rule 521.  Where  an  on-site  inspection  of  the   property   is   deemed 
necessary by the department, the broker shall deposit  with  the   department 
estimated expenses for the inspection of the property in an  amount  set   by 
the department.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22523    Approval  to  engage  in  sales   of    promotional    nature; 
form; duration.
  Rule 523. (1)  The approval of brokers to engage in sales of a  promotional 
nature pursuant to section 2511 of the code shall be in the form of an  order 
and shall be effective for 1 year from the date of issuance.
  (2)  A broker shall annually renew the order  of  approval  to  engage   in 
sales of a promotional nature, pursuant to section  2511  of  the  code,  and 
shall bear  the  costs  incurred  by  the  department  in  investigating  the 
application.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.



R 339.22525    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2002 MR 16, Sept. 4, 2002.


R 339.22527    Broker  holding  order  of  approval  to  engage   in    sales 
of promotional nature; notice of changes.
  Rule 527.  A broker who holds an order of approval to engage in sales of  a 
promotional nature pursuant to section 2511 of  the  code  shall  notify  the 
department immediately of any material change in the information required  by 
R 339.22505 to R 339.22513.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002.


R 339.22529    Broker misrepresentation prohibited.
  Rule 529. A broker or his or her agent shall not represent  to  any  person 
that the department has inspected, investigated, or  approved  the   quality, 
value, or merit of any offering.

  History:  1991 MR 4, Eff. May 1, 1991.


                           PART 6. REAL ESTATE EDUCATION
                           SUBPART 1. GENERAL PROVISIONS


R 339.22601  Course approval; certificate.
  Rule 601. (1) A real estate school or sponsor shall apply  for  and  obtain 
approval as determined by the department for real  estate  education  courses 
before the courses are offered to the public.
  (2) The department shall issue a certificate or letter of  course  approval 
or a notice of denial to the school or  sponsor  within  60  days  after  the 
application is received.  Denials shall be based on substantive  deficiencies 
and specify the reasons for the denial.
  (3) Courses shall  be  approved  as  determined  by  the  department.   The 
department will accept the  courses  for  approval  that  meet  the  criteria 
established by the department for course content and number  of  clock  hours 
and are taught by instructors who meet the criteria in R 339.22101.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002; 2007 
MR 2, Eff. Jan. 29, 2007.


R 339.22602 Advertising for approved real estate courses.
  Rule 602. All advertising for approved real estate courses  that  are  held 
out to the public as fulfilling the requirements of section 2504 of the  code 
shall be in the name of the approved school or sponsor.

  History: 2002 MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22603  Solicitations.
  Rule  603.  (1)  Organizational  membership,  employment,  business-related 
solicitations, or  any  other  noneducational  presentations  are  prohibited 
during continuing education courses and prelicensure courses and shall not be 
counted as part of the clock hours of the course.
  (2) Students or licensees shall not receive  credit  for  solicitations  or 
noneducational presentations offered in conjunction with an approved course.

  History:  1991 MR 4, Eff. May 1, 1991; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22604  Student records; content; inspection.
  Rule 604.  (1) Each approved  real  estate  school  and  each  real  estate 
continuing education sponsor shall establish and maintain a record  for  each 
student.
  (2) Student records shall contain all of the following information:
  (a) The student's name and address.
  (b) The number of clock hours attended.
  (c) The student's  grade,  if  an  examination  is  required  to  determine 
successful completion of the course.
  (d) The date of course completion.
  (e) The last 4 digits of the student's social security number.
  (f) The student's date of birth.
  (g) The real estate license identification number, if applicable.
  (3) All records shall be available for inspection  during  normal  business 
hours by an authorized representative of the department,  if  the  inspection 
does not violate a law.
  (4) A real estate school or sponsor shall maintain records in the following 
manner:
  (a) Records of schools shall be maintained permanently.
  (b) Records of sponsors shall be maintained for a minimum of 6  years  from 
inception date of the record.
  (5) A real estate school or sponsor shall issue a certificate of completion 
to a student who successfully completes an approved real estate course.   The 
certificate shall include all of the following information:
  (a) The date of course completion.
  (b) Identification of the course attended, including the following:
  (i) The name of the course, as approved by the department.
  (ii) For continuing education sponsors, the  course  approval  numbers,  as 
assigned by the department.
  (c) The name and approval number of the school or sponsor.
  (d) The name of the student.   Continuing  education  sponsors  shall  also 
include the licensee's real estate license identification number.
  (e) The number of clock hours completed by the student.
  (f) The signature of the course coordinator.
  (6) Each student  or  licensee  completing  a  prelicensure  or  continuing 
education  course  shall  present  a  state-issued  photo  identification  or 
acceptable alternative form of photo identification to the school or  sponsor 
before receiving the certificate of completion. Both of the following apply:
  (a) For courses conducted in a traditional classroom setting,  students  or 
licensees  shall  present  a  state-issued  photo  identification  or   other 
acceptable  alternative  form  of  identification  that  verifies,   to   the 
satisfaction of the school or sponsor, the identification of the  student  or 
licensee.
  (b) For courses conducted through distance education, the school or sponsor 
shall ensure that the student or licensee whose attendance is reported to the 
department is the same person who completed the distance education  course.
The school or sponsor shall take  appropriate  measures  to  ensure  accurate 
verification of the identity of each student  or  licensee  before  reporting 
course completion to the department.
  (7) At least 30 days before courses are held, schools  and  sponsors  shall 
submit to the department a schedule and geographic location for each course.
  (8) Within 5 business days of the conclusion of the  last  course,  schools 
and sponsors shall submit, in a format required by the department, the  names 
of students who have successfully completed an approved course.

  History: 2002 MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22605 Submissions with application  for  approval;  student  contracts; 
return of fees.
  Rule 605.  A submission for  course  approval  shall  contain  all  of  the 
following:
  (1) An application as approved by the department.
  (2) A student contract, if used by the school.
  (3) A copy of the school's policy for the return of fees if a student fails 
to appear,  is  dismissed,  or  withdraws  voluntarily  from  a  real  estate 
prelicensure or continuing education course.

  History: 2002 MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R339.22606 Distance learning.
  Rule 606.  (1) Real estate education courses represented as fulfilling  the 
requirements of section 2504 of  the  code  and  delivered  through  distance 
learning shall be approved as  determined  by  the  department  before  being 
offered to the public.
  (2) A distance-learning course shall contain all of the following:
  (a) All requirements listed in R 339.22651(1) for approval of a  continuing 
education course, or R 339.22631(1) for approval of a prelicensure course.
  (b) The individual modules of instruction offered on a  computer  or  other 
interactive program.
  (c) A list of at least 1 learning objective for each module of instruction.
 The learning objective shall ensure that if all the objectives are  met  the 
entire content of the course is understood.
  (d) A structured learning method to  enable  the  student  to  attain  each 
learning objective.
  (e) A method of assessment of the student's performance during each  module 
of instruction.
  (f) A remediation for any student who is deficient  in  the  assessment  to 
repeat the module until the student understands the course content material.
  (3) Delivery systems which have met the  distance  education  criteria  for 
current certification by the association of real estate license law officials 
(ARELLO) shall be acceptable to the department, as follows:
  (a) Proof of ARELLO certification  as  a  primary  or  secondary  provider, 
including the summary sheet and  certificate,  shall  be  provided  with  the 
application for course approval.
  (b) Upon withdrawal or expiration of ARELLO certification, the approval  to 
offer distance learning courses shall be suspended until ARELLO certification 
is reinstated or the sponsor has applied for and received approval  from  the 
department according to subrule (4) of this rule.
  (4) Equivalent delivery systems  may  be  used  if  they  are  approved  as 
determined by the department.
  (5) The real estate school or sponsor  shall  describe  in  detail  on  its 
application how it will remedy hardware and software failures.

  History: 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22607  Program coordinator.
  Rule 607.  Each real estate school or sponsor shall designate  at  least  1 
individual  as  coordinator.   The  coordinator  shall  be  responsible   for 
supervising the program of courses and assuring compliance with the code  and 
these rules.

  History:  1991 MR 4, Eff. May 1, 1991; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22609  Instructors.
  Rule 609. (1) Each instructor  shall  be  approved  as  determined  by  the 
department before teaching any real estate course.  Instructors who meet  the 
criteria in R 339.22101 (m) (i), (ii), or (iii) shall be deemed  approved  by 
the department.
  (2) Instructors shall be responsible for all of the following:
  (a) Compliance with all laws and rules relating to real estate education.
  (b) Providing students with current and accurate information.
  (c) Maintaining an environment conducive to learning.
  (d) Assuring and certifying accurate attendance  of  students  enrolled  in 
courses.
  (e) Providing assistance to students and responding to  questions  relating 
to course materials.
  (f) Attending such workshops or instructional programs as required  by  the 
department.
  (3) The real estate school or sponsor shall submit to  the  department  the 
qualifications of each instructor to be used in an approved course not  fewer 
than 60 days before the instructor is scheduled to begin instruction.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug. 4,  1997;  2002 
MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22611    Syllabus.
  Rule 611. Students shall be provided with a syllabus which contains,  at  a 
minimum, all of the following information:
  (a) The course title.
  (b) The times and dates of the course offering.
  (c)  The  names,  addresses,  and  telephone  numbers   of    the    course 
coordinator and instructor.
  (d) A detailed outline of the subject matter to be covered.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22613  Student attendance and makeup policy.
  Rule 613. (1) A student shall attend 100% of a course in  order  to  obtain 
credit for the course.
  (2) Credit for a distance learning course requires completion of the entire 
course.
Completion of the entire course means the number  of  course  hours  attended 
equals the number of hours for which the course is approved.
  (3) A real estate school or sponsor shall have a makeup policy for students 
who are absent from or late in arriving at regularly scheduled class sessions.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR 16, Eff. Sept. 4, 2002; 2007 
MR 2, Eff. Jan. 29, 2007.


R 339.22615  Misleading information.
  Rule 615. A real estate school or  sponsor  shall  not  provide  misleading 
information. Information is misleading when, taken as a  whole,  there  is  a 
probability that it will deceive the class of persons that it is intended  to 
influence. A real estate school or  sponsor  shall  not  represent  that  the 
department's approval is a recommendation or endorsement  of  the  entity  to 
which it is issued or a course of instruction offered by it.

  History:  1991 MR 4, Eff. May 1, 1991; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22617  Denial, suspension, or rescission of approval to offer  courses; 
violation of code or rules.
  Rule 617. (1) A real estate school, sponsor or instructor may be subject to 
the penalties of section 602  of  the  code,  including  disciplinary  action 
against a course approval, for any of the following reasons:
  (a) Failure to comply with the provisions of the code or these rules.
  (b) Revealing or attempting to discover,  or  soliciting,  encouraging,  or 
inducing a  person  to  reveal,  the  questions  on  a  real  estate  license 
examination administered by or on behalf of the department.
  (c) Making a substantial misrepresentation regarding a real estate  school, 
sponsor, or course of study.
  (d) Making a false promise of a character likely to influence, persuade, or 
induce regarding a sponsor, real estate school or course of study.
  (e) Pursuing a continued and flagrant course of  misrepresentation  or  the 
making of  false  promises  through  agents,  salespersons,  advertising,  or 
otherwise.
  (2) The department shall have the right to review a course at any time  and 
to summarily suspend course approval, in accordance with section 505  of  the 
code, where the course does not conform to the requirements of  the  code  or 
these rules or where  there  is  a  high  rate  of  failure  on  a  licensing 
examination indicating lack of competent instruction.
  (3) A proprietary real estate school  licensed  under  1943  PA  148  shall 
continue to comply with the provisions of the act.

  History:  1991 MR 4, Eff. May 1, 1991; 2007 MR 2, Eff. Jan. 29, 2007.



                      SUBPART 2. PRELICENSURE COURSES


R 339.22631  Application for approval to offer prelicensure  courses;  forms; 
required information.
  Rule 631. (1)  A  real  estate  school  shall  submit  an  application  for 
approval, as determined by the department,  for  prelicensure  courses.   The 
application shall include, but not  be  limited  to,  all  of  the  following 
information:
  (a) The school name, business address, telephone number, facsimile  number, 
website address, and e-mail address, if applicable.
  (b) The course title.
  (c)  The  names,  addresses,  telephone  numbers  and   qualifications   of 
instructors.
  (d) A summary of topics  completed  for  each  prelicensure  course  to  be 
taught, including the number of hours allocated to each topic.
  (e) A sample certificate of completion that meets  the  requirements  of  R 
339.22604(5).
  (f) The name of the coordinator.
  (g) Methodology for verifying and monitoring attendance.
  (2) A change in the information on the application forms shall be  reported 
to the department within 30 days of the change.  The department shall  accept 
or reject a change within 60 days of notification of the change.
  (3) A real estate school or institution shall demonstrate  that  it  is  an 
entity that may offer prelicensure courses in accordance with section 2504(8) 
of the code.
  (4) In order to maintain course approval, a renewal application approved by 
the department shall be submitted to the department at least 60 days prior to 
expiration of the course approval.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug. 4,  1997;  2002 
MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22633    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2002 MR 16, Eff. Sept.  4, 
2002.


R 339.22635    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2002 MR 16, Eff. Sept.  4, 
2002.


R 339.22637    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2002 MR 16, Eff. Sept.  4, 
2002.


R 339.22639   Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2007 MR 2, Eff.  Jan.  29, 
2007.


R 339.22641   Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2007 MR 2, Eff.  Jan.  29, 
2007.


R 339.22643    Determination of compliance with  prelicensure  educational
  requirements; submittal  of  documentation  of  courses  at  college  or
  university accredited by nationally recognized agency.
  Rule 643. Courses which were undertaken and completed in the  principles of 
real estate or real estate related courses at a college   or   university  or 
school of law accredited by a nationally recognized accrediting   agency  may 
be submitted by an  applicant  for   a   broker's   or   associate   broker's 
license,  with  suitable  documentation  concerning    the    courses,    for 
consideration in determining that the applicant has  met   the   prelicensure 
education requirements. This exemption shall not be used  to  circumvent  the 
requirement of the code that schools and institutions receive approval.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22645  Approval of prelicensure courses; expiration date.
  Rule 645. (1) Approval of prelicensure courses issued by the department  to 
a real estate school shall expire on June 30 of the year in  which  all  real 
estate licenses expire.
  (2) A proprietary real estate school  licensed  under  1943  PA  148  shall 
comply with the act to maintain approval of the real estate school under this 
rule.

  History:  1991 MR 4, Eff. May 1, 1991; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22647    Application for renewal of course approval; receipt;  form.
  Rule 647. An application for renewal of approval   of   prelicensure   real 
estate courses shall be received by the department before  the  expiration of 
the  previous  approval  and  shall   be   on   forms   prescribed   by   the 
department.

  History:  1991 MR 4, Eff. May 1, 1991.


                     SUBPART 3. CONTINUING EDUCATION COURSES


R 339.22651 Application for approval to offer continuing  education  courses; 
forms; required information.
  Rule 651.  (1) A real  estate  sponsor  shall  submit  an  application  for 
approval, as determined by the department, for continuing  education  courses 
offered to real estate broker, associate broker or  salesperson  licensees.
The application shall include all of the following information:
  (a) The sponsor name, business address, telephone number, facsimile number, 
website address, and e-mail address, if applicable.
  (b) The course title.
  (c)  The  names,  addresses,  telephone  numbers  and   qualifications   of 
instructors.
  (d) An outline of the courses to be taught, including the number  of  hours 
allocated to each topic.  Courses shall be composed of  at  least  1  of  the 
following categories:
  (i) Changes in economic conditions.
  (ii) Changes in laws, court opinions, and rules.
  (iii) Interpretations relating to and affecting real property.
  (iv) Any topics relevant to the management, operation, or practice of  real 
estate.
  (e) A sample certificate of completion that meets  the  requirements  of  R 
339.22604(5).
  (f) The name of the coordinator.
  (g) Methodology for verifying and monitoring attendance.
  (2) The sponsor shall submit to the department any changes to  an  existing 
approved course. The department shall accept or reject  a  change  within  60 
days of notification of the change.
  (3) In order to maintain course approval, a renewal application approved by 
the department shall be submitted to the department at least 60 days prior to 
expiration of the course approval.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug. 4,  1997;  2002 
MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22652 Approval of continuing education courses; expiration date.
  R  652.  (1)  Approval  of  continuing  education  courses  issued  by  the 
department to a real estate sponsor shall expire on December 31 of  the  year 
in which all real estate licenses expire.

  History: 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22653   Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991;  1997  MR  7,  Eff.  Aug.  4,  1997; 
rescinded 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22654   Rescinded.

  History: 2002 MR 16, Eff. Sept. 4, 2002; rescinded 2007 MR 2, Eff. Jan. 29, 
2007.


R 339.22655   Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug 4, 1997; 2002 MR 
16, Eff. Sept. 4, 2002; rescinded MR 2, Eff. Jan. 29, 2007.


R 339.22657    Examinations.
  Rule 657. Course examinations  shall  not  be   required   for   continuing 
education courses unless they are required by the sponsor.

  History:  1991 MR 4, Eff. May 1, 1991.


R 339.22659 Attendance.
  Rule 659.  Credit for completion of a course shall only be granted once  in 
each renewal period, or as part of  the  requirement  to  become  relicensed, 
after a license has lapsed.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug. 4,  1997;  2002 
MR 16, Eff. Sept. 4, 2002; 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22661    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 2002 MR 16, Eff. Sept.  4, 
2002.


R 339.22663   Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; 2002 MR  16,  Eff.  Sept.  4,  2002; 
rescinded 2007 MR 2, Eff. Jan. 29, 2007.


R 339.22664   Rescinded.

  History: 2002 MR 16, Eff. Sept. 4, 2002; rescinded 2007 MR 2, Eff. Jan. 29, 
2007


R 339.22665  Credit earned by instructors.
  Rule 665. Instructors  may  earn  their  continuing  education  credit  for 
teaching a course.
  (a) Credit shall not be earned if the instructor  has  previously  obtained 
credit for the same course either as a student or an instructor.
  (b) Sponsors shall report the instructor's name on  the  list  of  students 
completing the course according to R 339.22604(8),  or  continuing  education 
credit for the course taught by the instructor shall not be  granted  by  the 
department.

  History:  1991 MR 4, Eff. May 1, 1991; 1997 MR 7, Eff. Aug. 4,  1997;  2007 
MR 2, Eff. Jan. 29, 2007.


R 339.22667    Rescinded.

  History:  1991 MR 4, Eff. May 1, 1991; rescinded 1997 MR 7,  Eff.  Aug.  4, 
1997.