ADRE Model Broker Policy Manual-Digital, Hire, Lease

You must first complete ADRE Model Broker Policy Manual-Earnest Money before viewing this Lesson
Please purchase the course before starting the lesson.

Electronic/Digital Signatures

The ADRE provides guidance regarding using Electronic signatures in Substantive Policy digitalStatement 2005.10.
This section should include:

  • Whether or not the Company will allow electronic signatures.
  • What electronic/digital signature companies are recommended/authorized?

Short Title: Electronic Signatures

Description of Practice/Procedure: A broker may use an electronic signature to indicate the broker’s approval of contracts and agreements as required by statute. The following elements or requirements must be met and will be the basis for any Broker Audit of that aspect of the broker’s practice:

A. System must meet the criteria under A.R.S. §44-7031:

A signature is a secure electronic signature if, through the application of a
security procedure, it can be demonstrated that the electronic signature at the
time the signature was made was all of the following:

  1. Unique to the person using it.
  2. Capable of verification.
  3. Under the sole control of the person using it.
  4. Linked to the electronic record to which it relates in such a manner
    that if the record were changed the electronic signature would be
    invalidated.
Quick Quiz

Fill in the Blank:
A may use an electronic signature to indicate the broker’s approval of contracts and agreements as required by .

B. The brokerage must have and enforce a written internal policy regarding personal
computer security and, at a minimum, require that any person with electronic
signature authority and capability locks or signs off his/her computer every time
they walk away from their computer.

C. The brokerage must have a backup system defined for when the computers are
down for an extended period of time. (i.e. how and when contracts and
agreements will be manually reviewed)

D. The system must have the ability to create a secure history log of all activity for
electronic signatures which can be reviewed by Department auditors and
investigators.

Authority: A.R.S. § 32-2151.01 identifies Arizona Licensed Broker requirements for record keeping. Subsection G requires the designated broker to review each listing agreement, purchase or lease agreement or similar instrument within 10 days of the date the parties executed the document, and to place the broker’s initials and date of review on the same page as the parties’ signatures. Commissioner’s Rule R4-28-1103 describes a broker’s professional duties and requirement for written policy manual.

Effective Date: 11/5/2004; Renumbered 4/01/05; Revised 8/8/16.

Quick Quiz

Fill in the Blank:
The system must have the to create a secure history log of all activity for  signatures which can be reviewed by Department and investigators.

Hiring

This section should include:

  • That a Sales Associate is not effectively hired by a broker until the broker approves of the license transfer to Company via the ADRE website or until the ADRE receives a completed and signed change form reflecting the hire, and the applicable fee.

Illness or Injury

This section should cover:

  • Who to report an illness or injury to.
  • Who will handle the Sales Associate’s business while they are unavailable.

Leases

This section should include:lease

  • Procedures and requirements for leasing a property.
  • A list of documents to turn into the Broker, which may include a fully executed lease; a copy of the listing or plano; lease deposit or copy of the lease deposit check; Real Estate Agency Disclosure and Election Form; receipt for Landlord/Tenant Act; and/or commission instructions from Landlord.
  • Whether the original is required or if a faxed copy is acceptable.
  • Procedures for handling/collection of lease deposits, including cashier’s check vs. non-cashiered checks, out-of-state checks, and procedures regarding any delays required for a check to clear the bank.

Multiple Listing Service (MLS)

This section should cover:

  • Who is responsible for dues associated with MLS and when they are to be paid?
Quick Quiz

Fill in the Blank:
That a Sales is not effectively hired by a broker until the broker approves of the license transfer to Company via the ADRE website or until the ADRE a completed and signed change form reflecting the hire, and the applicable .

Back to: BROKER MANAGEMENT CLINIC #2-Broker Policies
© Copyright - Dodd's School of Real Estate