BROKER MANAGEMENT CLINIC #2 – Broker Policies
Course Title: Broker Management Clinic (BMC) #2 – Broker Policies
Course Length: 3 Hours (Commissioner’s Standards)
Course Description: This 3-hour course is designed to fulfill Arizona’s Commissioner’s Standards requirement for real estate broker licensees. BMC #2 – Broker Policies focuses on the implementation of effective broker supervision, risk management strategies, and the use of the ADRE Model Broker Policy Manual to establish compliant policies and procedures. The course provides essential tools to identify and address key operational responsibilities, such as transaction oversight, trust account management, advertising compliance, and risk reduction practices. Special emphasis is placed on A.A.C. R4-28-1103, broker supervision rules, and practical applications for enforcing company policies to minimize violations and complaints identified by the Arizona Department of Real Estate (ADRE). Additionally, the course highlights the critical development and utilization of the Independent Contractor Agreement (ICA) to clearly define relationships, responsibilities, and expectations between brokers and contractors.
Learning Objectives: By the end of this course, participants will be able to:
- Identify and implement reasonable supervision policies for employees and contractors.
- Develop effective risk management systems for real estate companies.
- Use the ADRE Model Office Policy Manual to structure policies and procedures efficiently.
- Recognize common ADRE complaints and violations and implement strategies to avoid them.
- Develop and utilize an effective Independent Contractor Agreement (ICA).
Learning Methods:
- Examples to demonstrate real-world applications.
- Legal Q&A discussions for a deeper understanding of compliance issues.
- True/False Reviews to reinforce key learning points.
- Multiple-choice exam to test comprehension.
- Final Exam to assess overall knowledge and preparedness.
Target Audience:
- Renewing Designated Brokers
- Renewing Delegated Associate Brokers acting on behalf of a Designated Broker under A.R.S. §32-2151.01(G)
- Original Broker Applicants (required before activating a broker’s license)
Key Topics Covered:
- Broker Supervision Policies (A.A.C. R4-28-1103)
- Use of the ADRE Model Broker Policy Manual for operations and compliance
- Transaction Oversight and management of documents, trust accounts, and record-keeping
- Advertising Policies, disclosure requirements, and annual reporting compliance
- Effective Independent Contractor Agreements (ICA)
- Risk Management and avoiding common ADRE violations
This course provides a comprehensive understanding of broker policies and equips participants with practical tools to enhance compliance, streamline operations, and mitigate risks in their real estate businesses.
Lessons
0-Orientation of Online CE Class-BMC 2
1-ADRE Model Broker’s Policy and Procedure Manual
Please Read: You must complete the fill-in-the-blanks below in order to start the quiz. ADRE Model Broker’s Policy and Procedure Manual INTRODUCTION The ADRE Model Broker’s Policy and Procedure…
2-ADRE Requirements Office Policy Manual
Effective August 6, 2002, Commissioner’s Rule R4-28-1103 was adopted that requires a broker to establish and enforce written policies, rules, procedures, and systems to: Review and manage transactions requiring a…
3-ADRE Model Broker Policy Manual – Agency
Agency Relationships This section should clearly describe the company’s policy on agency. The following are examples of different forms of agency the company may implement: The Company represents the seller/landlord…
4-ADRE Model Broker Policy Manual – Annual 1099 Report
Annual 1099 Report This section should cover: What IRS 1099 forms will include and exclude (such as any deductions) and who pays deductions. Earnings that are paid out of escrow…
5-Section 1 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
6-ADRE Model Broker Policy Manual – Assistants and Teams
Assistants and Teams This section should include: The Broker’s policy concerning Personal Assistants, permissible and prohibited activities, compensation, equipment/office space, withholding tax, worker’s compensation insurance, Company liability. If used, team…
7-ADRE Model Broker Policy Manual – Business Relationships
Business Relationships/Vendor Referral Policy (RESPA) Real Estate Settlement Procedures Act (“RESPA”) governs the conduct of real estate brokers on the federal level. RESPA is also an anti-kickback act. This section should…
8-ADRE Model Broker Policy Manual – Commissions
Commissions Collection of Commissions This section should cover: Costs of recovering any commissions and who pays for the costs: the Company, Sales Associate, or someone else. Division of any forfeited…
9-ADRE Model Broker Policy Manual – Commissions – Part 2
Deferred Commission This section should cover: How any deferred commissions received will be paid to sales associates. If a beneficial interest can be assigned to a sales associate and under…
10-Section 2 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
11-ADRE Model Broker Policy Manual – Customer Care
Customer Care (Duties to Clients and Non-Clients) Representing Clients A.A.C. R4-28-802 and R4-28-1101 provide guidance on duties a licensee has to his/her clients. Unlicensed assistants may be used to perform…
12-ADRE Model Broker Policy Manual – Disclosure Policy and Documents
Disclosure Policy and Documents Affidavit of Disclosure This section, for transactions involving (five) 5 or fewer parcels located in an unincorporated area, should include the use of the Affidavit of…
13-ADRE Model Broker Policy Manual – Disclosure
Fissure Maps 32-2117. Earth fissure maps; posting; immunity A. On receipt of maps from the Arizona Geological survey, the state real estate department shall provide any earth fissure map to…
14-ADRE Model Broker Policy Manual – Employees
All Employment Records must be maintained for five years (A.R.S. § 32-2151.01(A)). This section may include information about: Benefits Insurance Paid Time Off Holidays Enforced Absences, i.e., Jury Duty, Military…
15-Section 3 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
16-ADRE Model Broker Policy Manual – Internet/Websites
Internet/Websites/Social Media/Blogs This section should include: Internet Who is allowed to use Company computers. What can the computers be used for, i.e., personal vs. business. Does the Company have email…
17-ADRE Model Broker Policy Manual – Areas of Expertise
Areas of Expertise This section should include: What is the Company’s position on working outside of an area of expertise? What does Company require as far as education for areas…
18-ADRE Model Broker Policy Manual – Earnest Money
Dress Code This section should include: The Company’s dress code in the office. Appropriate attire when interacting with clients. Earnest Money This section should include: That the amount and type…
19-ADRE Model Broker Policy Manual – Digital, Hire, Lease
Electronic/Digital Signatures The ADRE provides guidance regarding using Electronic signatures in Substantive Policy Statement 2005.10. This section should include: Whether or not the Company will allow electronic signatures. What electronic/digital…
20-Section 4 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
21-ADRE Model Broker Policy Manual – Partnership
Partnership Agreements between Sales Associates This section may include the following topics: Sales Associates who elect to be partners shall draft an agreement between themselves. Sales Associates must have the…
22-ADRE Model Broker Policy Manual – Property Management
Property Management If the Company allows property management, this section should cover: Transaction records for property management transactions must be kept for three years. Residential leases must be maintained for…
23-ADRE Model Broker Policy Manual- System
Termination Policy ADRE Model Broker Policy Manual-System This section should include: Procedures for when a Sales Associate terminates association with the Company, or the Company terminates the Sales Associate, such as:…
24-ADRE Model Broker Policy Manual – Offers
Vacations/Out of Town This section should cover: The methods Sales Associates are required to use to communicate, such as pagers, mobile phones, email, etc. What Sales Associates are expected to…
25-Section 5 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
26-ADRE Model Broker Policy Manual – Transaction Paperwork
Transaction Paperwork and Management Listings This section should include: A Sales Associate must turn in every Listing to the Broker immediately upon the Seller’s signature. Any additional documents the Broker…
27-ADRE Model Broker Policy Manual – Transaction Logs
Transaction Logs This section should include: A description of the manual or automated chronological or other numbering system used to log transaction files. All purchase contracts and lease agreements must…
28-ADRE Model Broker Policy Manual – Trust Accounts
Trust Accounts This section should cover: Whether the Company has a trust account. If the Company has a trust account, what procedures should Sales Associates follow to submit checks to…
29-Section 6 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
30-INDEPENDENT CONTRACTORS AGREEMENT: BMC #2
AGREEMENT Independent Contractor. The contractor agrees to work for Broker as an Independent Contractor, and not as an employee; however, Contractor understands that Broker may be legally accountable for the…
31-INDEPENDENT CONTRACTORS AGREEMENT Part 2: BMC #2
Commissions to Contractor: As commissions are paid to Broker through the efforts of Contractor, the following percentage of any and all such commissions shall be paid to Contractor by Broker…
32-INDEPENDENT CONTRACTORS AGREEMENT Part 3: BMC #2
Non-Liability for Actions or Inactions of Contractor: Contractor agrees to indemnify, defend and hold Broker harmless from any and all liabilities, obligations, suits, actions, claims, losses or demands asserted against…
33-NDEPENDENT CONTRACTORS AGREEMENT Part 4: BMC #2
Termination: This Agreement may be terminated by either party upon thirty days’ written notice. [or specify other reasons for termination]. [Optional:] It is agreed Broker or Contractor may terminate this contract by direct…
34-Section 7 Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
You will need to wait for the timer to run out before you can submit the Exam.
35-Final Exam – BMC # 2 – ADRE Model Broker’s Policy and Procedure Manual
The Final is not timed. BROKER MANAGEMENT CLINIC #2-Broker Policies
