Real Estate Commission Commission Information Best Business Practices Consumer Pamphlet How do For Sale By Owners (FSBO) show relationship and are they required to sign the Consumer Pamphlet? The Commission stated that the prudent thing for a licensee to do is to give the individual the pamphlet when they open the door and have the pamphlet signed every time they deal with a FSBO. AS 08.88.615 Duties Owed by Licensee AS 08.88.695 Definitions 12 AAC 64.118 Consumer Pamphlet The Commission’s best practice for team members signing the Consumer Pamphlet and Waiver of Right to Be Represented is for team members to sign and date on lines provided. (Dec. 2009) Advertising Per 12 AAC 64.130 (8), when a licensee advertises to buy, sell, rent lease or exchange any real estate they must include in the advertisement the broker’s business name registered with the department; to include real estate advertised that is owned by the licensee. Yellow Pages and Craig’s List has advertised for real estate licensees with no mention of the broker’s business name in their advertisements. Be sure to state to the client that any advertising for the property must be coordinated with the licensee or brokerage. The client may not be doing the licensee a favor when advertising on their own if they do not include the licensee’s Broker information. All real estate advertising must contain the broker’s business name. Please take action to ensure that you are not in violation of this regulation. 12 AAC 64.130 Grounds for Revocation Alaska Law Prohibits Rebates on Commissions Under AS 08.88.401(d), a person licensed under AS 08.88 may not knowingly pay any part of a fee, commission, or other compensation received by the licensee in buying and selling real estate to a person who is not licensed under AS 08.88. This statute prevents the sharing of any portion of the licensee’s fee or commission on a real estate transaction with the licensee’s principal , or with any other unlicensed person. This prohibition also includes offers from organizations to rebate a portion of a licensee’s commission on the sale of a member’s home if the sale is handled through the organization’s program. AS 08.88.401(e) provides three exceptions to this ban: 1) payments by a licensee to a person licensed to practice real estate in another state if that person has assisted the licensee in the performance of an act which requires an Alaska license; 2) payments from a licensee to a principal as part of a resolution of a dispute regarding the terms of the transaction or the property transferred; and 3) contributions from a licensee to a charitable organization. Licensees who are considering offering rebates on commissions are encouraged to consult an attorney to ensure that they are complying with Alaska law. AS 08.88.401 Prohibited Conduct; penalties Waiver by Agreement Exemption Form Exemption form for first sale can be a stand alone; but the waiver agreement form, the licensee needs to go over what they are giving up. Licensee must disclose what they know even if the transferor doesn’t tell. Referrals The broker is required to obtain and have on file the request and copy of an active, current license for the person requesting a commission from another licensing jurisdiction where that person is licensed to perform real estate transactions. 12 AAC 64.240(d) Brokers Commission Accounts/ Records of Transactions The Commission stated that records can be stored using electronic means; however, they recommend when using electronic storage to use DVD’s as opposed to CD’s. DVD’s have a longer shelf life. (March 2011) AS 08.88.351 Accounts; Records of Transactions Temporary Absence of Broker of Record The broker or the associate broker in charge of a branch office is required to send in the Notice of Temporary Absence of Broker of Record form to the Commission when expecting to be temporarily out of the office and out of contact. The broker does have the ability to supervise their branch office in the absence of the associate broker. (September 2012) 12 AAC 64.078 Temporary Absence of Broker of Record Education PLE and CE Licensees that are required to complete both Post Licensing Education (PLE) and Continuing Education (CE), the same course numbers cannot be used for CE and PLE credit in the same licensing period. (December 2012) 12 AAC 64.64.064(e) Education Requirements after Initial License