<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".03" citation="COMAR 09.11.05.03" title_num="09" subtitle_num="11" chapter_num="05" heading="Reasonable and Adequate Supervision.">
  <paragraph num="A.">
    <text>Initially, the operations characteristics of the brokerage firm shall be considered by determining the:</text>
    <paragraph num="(1)">
      <text>Number of licensed salespersons and associate brokers affiliated with the broker;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Number of branch offices and salespersons assigned to each office;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Number of management personnel in each office;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Normal and routine working days and hours of the broker and management personnel;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Type of real estate activities of firm.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Factors to be considered in determining whether supervision is reasonable and adequate include, but are not limited to, the following:</text>
    <paragraph num="(1)">
      <text>Availability of:</text>
      <paragraph num="(a)">
        <text>Training or education sessions held regularly at least once every 2 months;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Experienced supervisory personnel to review and discuss:</text>
        <paragraph num="(i)">
          <text>Contract provisions;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Brokerage agreement provisions; and</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Advertising;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>Written procedures and policies which provide clear guidance in the following areas:</text>
        <paragraph num="(i)">
          <text>Proper handling of deposit monies and other funds in accordance with Business Occupations and Professions Article, §§17-501—17-508, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Compliance with federal, State, and local fair housing laws and regulations;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Advertisement requirements applicable to real estate transactions;</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Review of contracts, leases, and brokerage agreements upon execution by all parties to the contract, lease, or brokerage agreement;</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Use and limitations of unlicensed personal assistants;</text>
        </paragraph>
        <paragraph num="(vi)">
          <text>Disclosure of agency relationships by licensees in residential real estate transactions;</text>
        </paragraph>
        <paragraph num="(vii)">
          <text>Distribution and dissemination of information on new or changed requirements in real estate laws and regulations enacted by local, State, and federal governments and regulatory agencies;</text>
        </paragraph>
        <paragraph num="(viii)">
          <text>The obligation of all licensees to comply with all applicable provisions of Business Occupations and Professions Article, Title 17, Annotated Code of Maryland (the Maryland Real Estate Brokers Act), the Code of Ethics as adopted and as amended from time to time by the Commission, and all applicable local, State, and federal laws and regulations;</text>
        </paragraph>
        <paragraph num="(ix)">
          <text>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</text>
        </paragraph>
        <paragraph num="(x)">
          <text>The unauthorized practice of law by a licensee; and</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Evidence of:</text>
      <paragraph num="(a)">
        <text>Records of attendance at sales meetings;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>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;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Review by the broker, branch office manager, or designee of the broker or branch office manager of advertisements to be placed by licensees affiliated with the broker;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Compliance with the written policies and procedures as specified in §B(1)(c) of this regulation; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Dissemination of the written policies and procedures as specified in §B(1)(c) of this regulation to licensees affiliated with the broker.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>On a showing that the broker has not provided reasonable and adequate supervision in the areas under §B of this regulation, the burden of proof shall be on the broker to show that the supervision which the broker did provide was reasonable and adequate.</text>
  </paragraph>
</regulation>