Rules of Department of Commerce and Division 2250—Missouri Commission Chapter 8— Conduct and Practice

Title Page

20 CSR 2250-8.010 Place of Business...... 3 20 CSR 2250-8.020 Broker Supervision and Improper Use of License and Office ...... 3 20 CSR 2250-8.030 Branch Offices...... 3 20 CSR 2250-8.040 Sales Manager ...... 4 20 CSR 2250-8.050 Clerical Personnel...... 4 20 CSR 2250-8.060 Display of License ...... 4 20 CSR 2250-8.070 Advertising ...... 4 20 CSR 2250-8.080 Franchises; Trade Names; Insignia ...... 5 20 CSR 2250-8.090 Brokerage Service Agreements ...... 5 20 CSR 2250-8.095 Brokerage Relationship Disclosure...... 8 20 CSR 2250-8.096 Brokerage Relationship Confirmation ...... 9 20 CSR 2250-8.097 Broker Disclosure Form ...... 9 20 CSR 2250-8.100 Offers ...... 10 20 CSR 2250-8.110 Licensee’s Interest in Transactions; Relationship with Parties ...... 10 20 CSR 2250-8.120 Deposits to Escrow or Trust Account ...... 11 20 CSR 2250-8.130 Earnest and Escrow Money; Disputes ...... 11 20 CSR 2250-8.140 Standard Forms ...... 12 20 CSR 2250-8.150 Closings and Statements...... 12 20 CSR 2250-8.155 Closing a Real Estate Brokerage Firm ...... 12

JOHN R. ASHCROFT (6/30/20) CODE OF STATE REGULATIONS 1 Secretary of State 20 CSR 2250-8.160 Retention of Records ...... 13 20 CSR 2250-8.170 General ...... 14 20 CSR 2250-8.200 Management Agreement Required...... 14 20 CSR 2250-8.210 Management Agreements (Rescinded April 30, 2008)...... 14 20 CSR 2250-8.220 Escrow or Trust Account and a Separate Management Escrow Account Required...... 14 20 CSR 2250-8.230 Security Deposits: Disputes...... 15

2 CODE OF STATE REGULATIONS (6/30/20) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

Title 20—DEPARTMENT OF (1) Individual brokers, designated brokers, makes an appointment under section COMMERCE AND INSURANCE and office managers/supervising brokers shall 339.820, RSMo. However, when such broker Division 2250—Missouri Real be responsible for supervising the real estate supervises the licensees for both sides of a Estate Commission related activities including the protection of transaction, that broker will be a dual agent Chapter 8—Business Conduct any confidential information as defined under or a transaction broker upon learning confi- and Practice 339.710.8, RSMo of all licensed and unli- dential information about either party to a censed persons associated with them, transaction or upon being consulted by any 20 CSR 2250-8.010 Place of Business whether in an individual capacity or through licensee involved in the transaction. Also, a corporate entity, association or partnership. when the broker supervises the licensee rep- PURPOSE: This rule affirms the fact that a A broker shall not be held responsible for resenting or assisting one (1) side of the broker who holds him/herself out to the pub- inadequate supervision if— transaction and personally represents or lic as a broker must clearly identify him/her- (A) A licensed or unlicensed person vio- assists the other side, that broker will be a self and his/her location and maintain regu- lates a provision of Chapter 339, RSMo or dual agent or a transaction broker. lar business hours. the rules for it in conflict with the supervis- ing broker’s specific written policies or AUTHORITY: section 339.120, 339.710, (1) Every resident broker, except those who instructions; 339.780 and 339.820, RSMo Supp. 1999.* (B) Reasonable procedures have been have placed their licenses on inactive status This rule originally filed as 4 CSR 250-8.020. established to verify that adequate supervi- or those not actively engaged in real estate Original rule filed Nov. 14, 1978, effective sion was being performed; Feb. 11, 1979. Amended: Filed May 11, 1983, business, shall maintain a regularly estab- (C) The broker, upon learning of the viola- effective Aug. 11, 1983. Amended: Filed June lished place of business in this state, which tion, attempted to prevent or mitigate the 15, 1990, effective Dec. 31, 1990. Amended: shall be open to the public during usual busi- damage; Filed Feb. 2, 1994, effective Aug. 28, 1994. ness hours or at regular stated intervals. No (D) The broker did not participate in the Amended: Filed Dec. 1, 1997, effective Sept. salesperson may be associated with a broker violation; 1, 1998. Amended: Filed Jan. 14, 2000, not maintaining a regularly established place (E) The broker did not ratify the violation; effective July 30, 2000. Moved to 20 CSR of business or a broker not actively engaged and 2250-8.020, effective Aug. 28, 2006. in the . This rule does not (F) The broker did not attempt to avoid apply to a broker-salesperson or to broker- learning of the violation. *Original authority: 339.120, RSMo, 1941, amended partners, broker-associates or broker-officers 1963, 1967, 1981, 1988, 1993, 1995, 1999; 339.710, of a firm which maintains a regular place of RSMo 1996, amended 1998, 1999; 339.780, RSMo 1996, (2) A broker shall not permit licensed and amended 1998, 1999; 339.820, RSMo 1996, amended business. unlicensed persons affiliated with the broker 1998, 1999. to— (2) A broker’s business sign of sufficient size (A) Establish and carry on real estate bro- to identify it and bearing the name under kerage business for their own benefit, direct- 20 CSR 2250-8.030 Branch Offices which the broker or the broker’s firm is ly or indirectly, where the broker’s primary licensed, or the regular business name, shall interest is the receipt of a fee or other valu- PURPOSE: This rule qualifies a branch be displayed outside of the broker’s regular able consideration for the use of the broker’s office and stipulates who may manage and place of business. license by others; or direct same. (B) Where the broker has no control or AUTHORITY: section 339.120, RSMo Supp. only nominal control of the business affairs (1) If a broker maintains a branch office(s), 1993.* This rule originally filed as 4 CSR conducted under the broker’s license or is each shall be operated under the same name 250-8.010. Original rule filed Nov. 14, 1978, only nominally associated with the business. and license as the parent office and every effective Feb. 11, 1979. Amended: Filed such place of business shall comply with the March 14, 1984, effective June 11, 1984. (3) Appointments of designated agents and provisions of 20 CSR 2250-8.010. Amended: Filed Oct. 2, 1985, effective Dec. designated transaction brokers under section (2) Project sales, leasing, or management 26, 1985. Amended: Filed Feb. 2, 1994, 339.820, RSMo shall be entered into by the offices maintained on-site in an effective Aug. 28, 1994. Moved to 20 CSR designated broker or office manager/super- building, development project, duplex, apart- 2250-8.010, effective Aug. 28, 2006. ** vising broker on behalf of that broker and affiliated licensees. ment complex, court, office building, shop- *Original authority: 339.120, RSMo 1941, amended 1963, ping center, or industrial development are not 1967, 1981, 1988, 1993. (4) Appointments of designated agents and required to be registered as branch offices.

**Pursuant to Executive Order 21-07, 20 CSR 2250-8.010, section designated transaction brokers under section (1) was suspended from April 17, 2020 through April 12, 2021. 339.820, RSMo shall be made in a written (3) A branch office shall be under the direct agreement for brokerage services or other supervision of either a licensed broker, bro- written notice to the client or party, unless ker-salesperson, or a broker-partner, broker- 20 CSR 2250-8.020 Broker Supervision such appointment is presumed pursuant to associate, or broker-officer of the principal and Improper Use of License and Office section 339.820.1, RSMo. licensed broker; provided that nothing con- tained in this rule shall be construed to PURPOSE: This rule explicitly prohibits a (5) Individual brokers, designated brokers, relieve the principal licensed broker from broker from using his/her license to permit a and office managers/supervising brokers shall responsibility for all brokerage activities con- salesperson to function as a real estate bro- not be considered to be a dual agent or a ducted at the branch office. Nothing in this kerage firm. transaction broker solely because such broker section shall be construed as to prohibit the

JOHN R. ASHCROFT (5/31/21) CODE OF STATE REGULATIONS 3 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

office manager from engaging in the listing 2, 1994, effective Aug. 28, 1994. Moved to (C) Nothing in this section shall be con- and sale of real estate. 20 CSR 2250-8.050, effective Aug. 28, 2006. strued to eliminate the disclosure require- ments found elsewhere in these rules, includ- (4) A broker shall notify the commission, in *Original authority: 339.120, RSMo 1941, amended 1963, ing those contained in 20 CSR 2250-8.110. writing, within ten (10) days after opening or 1967, 1981, 1988, 1993. making any change in the address or manag- (2) No real estate advertisement by a licensee ing licensee of a branch office. 20 CSR 2250-8.060 Display of License shall show only a post office box number, telephone number or street address. Every AUTHORITY: section 339.120, RSMo Supp. PURPOSE: This rule directs the display of advertisement of real estate by a licensee 2011.* This rule originally filed as 4 CSR brokers’ and associates’ licenses. shall contain the broker’s regular business 250-8.030. Original rule filed Nov. 14, 1978, name or the name under which the broker or effective Feb. 11, 1979. Amended: Filed Oct. (1) Every broker shall maintain his/her the broker’s firm is licensed and shall indi- 2, 1985, effective Dec. 26, 1985. Amended: license and the licenses of all associates in the cate that the party advertising is a real estate Filed Dec. 15, 1986, effective March 27, regular place of business or branch office(s). broker and not a private party. 1987. Amended: Filed Feb. 2, 1994, effective The licenses shall be displayed to any mem- Aug. 28, 1994. Moved to 20 CSR 2250- ber of the public on request. (3) Every advertisement of real estate by a 8.030, effective Aug. 28, 2006. Amended: licensee where the licensee has no interest in Filed April 3, 2009, effective Sept. 30, 2009. AUTHORITY: section 339.120, RSMo Supp. the real estate shall be made under the direct Amended: Filed Oct. 27, 2011, effective April 1993.* This rule originally filed as 4 CSR supervision and in the name of the broker or 30, 2012. 250-8.060. Original rule filed Nov. 14, 1978, firm who holds the licensee’s license. If the effective Feb. 11, 1979. Amended: Filed Feb. licensee’s name or telephone number, or *Original authority: 339.120, RSMo 1941, amended 1963, both, is used in any advertisement, the adver- 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008. 2, 1994, effective Aug. 28, 1994. Moved to 20 CSR 2250-8.060, effective Aug. 28, 2006. tisement also shall include the name and tele- phone number of the broker or firm who 20 CSR 2250-8.040 Sales Manager *Original authority: 339.120, RSMo 1941, amended 1963, holds the licensee’s license. 1967, 1981, 1988, 1993. (4) No licensee shall advertise to buy, sell, PURPOSE: This rule defines who may be a sales manager. rent, , manage or exchange property in 20 CSR 2250-8.070 Advertising any manner that indicates, directly or indi- rectly, any unlawful discrimination against (1) Any licensee who acts in the capacity of PURPOSE: This rule not only defines adver- any individual or group because of race, a sales manager or assistant sales manager for tising, but it also regulates the manner, form, the broker shall be required to hold a broker- requirements and restrictions imposed on color, religion, national origin, ancestry, sex, salesperson license or to be licensed as a bro- advertising. It prohibits advertising by a handicap or familial status. ker-partner, broker-associate or broker-offi- salesperson in his/her own name. It explicitly cer of the broker. prohibits a free offering of any value in pro- (5) Guaranteed Sales. motional material. Further, it forbids dis- (A) As used in this rule, the term guaran- AUTHORITY: section 339.120, RSMo Supp. crimination of any group because of race, teed sales plan includes, but is not limited to: 1993.* This rule originally filed as 4 CSR creed, color or national origin. i) any plan in which a seller’s real estate is 250-8.040. Original rule filed Nov. 14, 1978, guaranteed to be sold, or ii) any plan where effective Feb. 11, 1979. Amended: Filed Feb. (1) Disclosure. a licensee or anyone affiliated with a licensee 2, 1994, effective Aug. 28, 1994. Moved to (A) A licensee shall not advertise to sell, will purchase a seller’s real estate if it is not 20 CSR 2250-8.040, effective Aug. 28, 2006. buy, exchange, rent, lease or manage proper- purchased by a third party in the specified ty in any manner indicating that the offer to period of a listing or within some other spec- *Original authority: 339.120, RSMo 1941, amended 1963, ified period of time. 1967, 1981, 1988, 1993. sell, buy, exchange, rent, lease or manage the property is being made by a private party not (B) Any written advertisement by a engaged in the real estate business. If any part licensee of a guaranteed sales plan shall 20 CSR 2250-8.050 Clerical Personnel of the offering, negotiation or completion of include a statement advising the seller that if a is to be handled by, the seller is eligible, costs and conditions may PURPOSE: This rule defines clerical person- through or under the direction or supervision apply and advising the seller to inquire of the nel and their limitations. of a licensee, directly or indirectly, the licensee as to the terms of the guaranteed licensee shall not advertise or represent to the sales agreement. This information shall be set (1) The activities of unlicensed clerical or public in any manner that the property is for forth in print at least one-fourth (1/4) as large office employees of a broker shall be limited sale or lease by the owner. as the largest print in the advertisement. to the duties normally attributed to those (B) If a licensee advertises to sell, buy, (C) Any radio or television advertisement positions. Unlicensed persons shall not do, or exchange, rent, lease or manage property in by a licensee of a guaranteed sales plan shall attempt to do, any of the activities set out which the licensee has an interest, and if the include a conspicuous statement advising if under 339.010.1.(1)–(10), RSMo. property is not listed by a brokerage entity, any conditions and limitations apply. the advertisement shall contain, in a promi- (D) Every guaranteed sales agreement AUTHORITY: section 339.120, RSMo Supp. nent , one (1) of the following: must be in writing and contain all of the con- 1993.* This rule originally filed as 4 CSR 1. By owner-broker; ditions and other terms under which the prop- 250-8.050. Original rule filed Nov. 14, 1978, 2. By owner-salesperson; or erty is guaranteed to be sold or purchased, effective Feb. 11, 1979. Amended: Filed Feb. 3. By owner-agent. including the charges or other costs for the

4 CODE OF STATE REGULATIONS (5/31/21) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

service or plan, the price for which the prop- AUTHORITY: section 339.120, RSMo Supp. 7. A statement which permits or pro- erty will be sold or purchased and the 1997.* This rule originally filed as 4 CSR hibits the designated broker and/or affiliated approximate net proceeds the seller may rea- 250-8.080. Original rule filed Nov. 14, 1978, licensee from acting as a disclosed dual agent sonably expect to receive. effective Feb. 11, 1979. Amended: Filed Feb. and if permitted, the duties and responsibili- 2, 1994, effective Aug. 28, 1994. Amended: ties of a dual agent; AUTHORITY: sections 339.100 and 339.120, Filed Aug. 1, 1997, effective March 30, 8. A statement which permits or pro- RSMo Supp. 2007.* This rule originally filed 1998. Moved to 20 CSR 2250-8.080, effective hibits the designated broker and/or affiliated as 4 CSR 250-8.070. Original rule filed Nov. Aug. 28, 2006. licensee from acting as a transaction broker 14, 1978, effective Feb. 11, 1979. Amended: and if permitted, the duties and responsibili- Filed May 11, 1983, effective Aug. 11, 1983. *Original authority: 339.120, RSMo 1941, amended 1963, ties of a transaction broker; 1967, 1981, 1988, 1993, 1995. Amended: Filed Sept. 7, 1984, effective Dec. 9. Specification of whether or not the 13, 1984. Amended: Filed Oct. 29, 1985, designated broker is authorized to cooperate effective Dec. 26, 1985. Amended: Filed Dec. 20 CSR 2250-8.090 Brokerage Service with and compensate other designated bro- 15, 1986, effective March 26, 1987. Amend- Agreements kers acting pursuant to any other brokerage ed: Filed March 16, 1988, effective July 1, relationship as defined by 339.710 to 1988. Amended: Filed June 16, 1989, effec- PURPOSE: This rule requires that a listing 339.860, RSMo, including but not limited to tive Sept. 28, 1989. Amended: Filed June 15, agreement be in writing and that a copy of the buyer’s agents and/or transaction brokers; 1990, effective Dec. 31, 1990. Amended: agreement be delivered to the owner before a 10. A statement which confirms that the Filed Nov. 15, 1991, effective June 25, 1992. broker may advertise or place a sign on the seller/ received the Broker Disclosure Amended: Filed Feb. 2, 1994, effective Aug. property. The agreement must contain all Form prescribed by the commission: a) on or 28, 1994. Amended: Filed Jan. 14, 2000, terms, conditions, a definite expiration date, before the signing of the seller’s agency effective July 30, 2000. Moved to 20 CSR and signatures of all parties. All information 2250-8.070, effective Aug. 28, 2006. Amend- agreement, or b) upon the licensee obtaining contained on the agreement shall be careful- any personal or financial information, ed: Filed Oct. 12, 2007, effective April 30, ly investigated for accuracy by the listing 2008. whichever occurs first; agent. In a cooperative listing, the selling 11. The signatures of all owners and the broker shall be presumed to be a subagent of *Original authority: 339.100, RSMo 1941, amended listing broker or listing agent as authorized by 1978, 1993, 2004, 2005, 2006, 2007 and 339.120, RSMo the listing broker. the broker; 1941, amended 1963, 1967, 1981, 1988, 1993, 1995, 12. The type of listing; 1999, 2004. (1) A licensee shall not advertise or place a 13. The legal description or the com- sign upon any property offering it for sale or plete street address of the property, which lease to prospective customers without the 20 CSR 2250-8.080 Franchises; Trade includes the city where the property is locat- written consent of the owner or his or her Names; Insignia ed; or, in the absence of a legal description or duly authorized agent. address, a clear description which unmistak- PURPOSE: This rule sets forth the require- ably identifies the property; and (2) A licensee shall not show residential ments that the use of a trade name in adver- 14. All other terms and conditions under property unless a broker holds a currently tising must be clearly revealed that the broker which the property is to be sold, leased, or effective written seller’s/lessor’s agency owns and operates the entity and, if the fran- exchanged. agreement, seller’s/lessor’s transaction bro- chisor has no legal liability, that must also be (B) The agreement shall contain no provi- kerage agreement, or other written authoriza- revealed on all documents. sion requiring an owner to notify the broker tion to show. of intent to cancel the listing after the expira- (1) If a broker maintains any business rela- tion date. tionship or affiliation, whether by franchise (3) In a commercial real estate transaction, a brokerage service agreement prepared by (C) Any addendums, riders, endorsements, agreement, contract or otherwise, with anoth- attachments, or changes to the listing agree- er organization and uses the name, trade legal counsel for the client/customer to be ment or other written agreement for broker- name or insignia of the other organization in represented or assisted shall not be subject to age services must contain the initials of all any manner in real estate advertising, the bro- the provisions of 20 CSR 2250-8.090(4)–(7). parties. ker shall furnish the commission a copy of (D) The licensee shall give a legible copy the franchise agreement or contract and such (4) Seller’s/Lessor’s Agency (Sale/Lease of every written listing agreement or other other related information as the commission Listing) Agreement. written agreement for brokerage services to may require. (A) Every written listing agreement or other written agreement for brokerage ser- the owner of the property at the time the sig- (2) If the franchise agreement or contract vices shall contain all of the following: nature of the owner is obtained. under which a broker is operating provides 1. The price; (E) A licensee shall not negotiate or enter that the franchisor or owner of the trade name 2. The commission to be paid (including into a brokerage service agreement with an or insignia has no legal liability for the any and all bonuses); owner if the licensee knows, or has reason to actions of the broker using the trade name or 3. A definite beginning date; know, that the owner has a written unexpired insignia, the broker shall include in all listing 4. An expiration date; exclusive brokerage service agreement as to agreements, contracts for sale and closing 5. The licensee’s duties and responsibil- the property with another broker, unless the statements a clear and explicit statement to ities; owner initiates the discussion and provided that effect in type reasonably calculated to 6. A statement which permits or pro- the licensee has not directly or indirectly gain the attention of the reader of the docu- hibits the designated broker from offering solicited the discussion, in which case the ment. subagency; licensee may negotiate and enter into an

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 5 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

agreement which will take effect after the broker of intent to cancel the agreement after buyer’s agents and/or other transaction bro- expiration of the current agreement. the expiration date. kers; and (F) No licensee shall make or enter into a (C) Any addendums, riders, endorsements, 11. A statement which confirms that the net listing agreement for the sale or lease of attachments, or changes to the agreement or seller/lessor received the Broker Disclosure or any interest in real property; other written authorization must contain the Form prescribed by the commission: a) on or this agreement is defined as one that stipu- initials of all parties. before the signing of the transaction broker- lates a net price to be received by the owner (D) The licensee shall give a legible copy age agreement, or b) upon the licensee with the excess over that price to be received of every written agreement or other autho- obtaining any personal or financial informa- by the broker as commission. rization to the buyer or tenant at the time the tion, whichever occurs first. (G) A listing agreement or other written signatures are obtained and a copy of the (B) The agreement shall contain no provi- agreement for brokerage services may not be written authorization shall be retained in the sion requiring an owner to notify the broker assigned, sold, or otherwise transferred to broker’s office. of intent to cancel the agreement after the another broker without the express written (E) A licensee shall not negotiate or enter expiration date. consent of all parties to the original agree- into a brokerage service agreement with a (C) Any addendums, riders, endorsements, ment. buyer or tenant if the licensee knows, or has attachments, or changes to the agreement reason to know, that the buyer or tenant has a must contain the initials of all parties. (5) Buyer’s/Tenant’s Agency Agreement. written unexpired exclusive agreement with (D) The licensee shall give a legible copy (A) Every written buyer or tenant autho- another broker, unless the buyer or tenant ini- of every written agreement to the owner of rization shall contain all of the following: tiates the discussion and provided the licensee the property at the time the signature of the 1. A description of the type of property has not directly or indirectly solicited the dis- owner(s) is obtained. sought by the buyer or tenant; cussion, in which case the licensee may nego- (E) A licensee shall not negotiate or enter 2. The commission or fee to be paid tiate and enter into an agreement which will into a brokerage service agreement with an (including any and all bonuses); take effect after the expiration of the current owner if the licensee knows, or has reason to 3. A definite beginning date; agreement. know, that the owner has a written unexpired 4. An expiration date; (F) A buyer or tenant agency agreement exclusive brokerage service agreement as to 5. The licensee’s duties and responsi- may not be assigned, sold, or otherwise trans- the property with another broker, unless the bilities; owner initiates the discussion and provided ferred to another broker without the express 6. A statement which permits or pro- the licensee has not directly or indirectly written consent of all parties to the original hibits the designated broker from offering solicited the discussion, in which case the buyer or tenant agency agreement. subagency; licensee may negotiate and enter into an 7. A statement which permits or pro- (6) Transaction Brokerage Agreement Be- agreement which will take effect after the hibits the designated broker and/or affiliated tween Broker and Seller/Lessor. expiration of the current agreement. licensee from acting as a disclosed dual agent (A) Every written seller’s or lessor’s trans- (F) No licensee shall make or enter into a and if permitted, the duties and responsibili- action brokerage agreement shall contain all net agreement for the sale or lease of real ties of a dual agent; of the following: property or any interest in real property; this 8. A statement which permits or pro- agreement is defined as one that stipulates a 1. The price; hibits the designated broker and/or affiliated net price to be received by the owner with the 2. The commission to be paid (including licensee from acting as a transaction broker excess over that price to be received by the any and all bonuses); and if permitted, the duties and responsibili- broker as commission. 3. A definite beginning date; ties of a transaction broker; (G) Transaction brokerage agreements may 4. An expiration date; 9. Specification of whether or not the not be assigned, sold, or otherwise trans- 5. The licensee’s duties and responsibil- designated broker is authorized to cooperate ferred to another broker without the express ities; with and compensate other designated bro- written consent of all parties to the original 6. The signatures of all owners and the kers acting pursuant to any other brokerage transaction brokerage agreement. relationship as defined by 339.710 to broker or affiliated licensee as authorized by 339.860, RSMo, including but not limited to the broker; (7) Transaction Brokerage Agreement Be- seller’s agents and/or transaction brokers; 7. The type of agreement; tween Broker and Buyer/Tenant. 10. A statement which confirms that the 8. The legal description or the complete (A) Every written buyer’s or tenant’s buyer received the Broker Disclosure Form street address of the property, which includes transaction brokerage agreement shall contain prescribed by the commission: a) on or the city where the property is located; or, in all of the following: before the signing of the buyer’s agency the absence of a legal description or address, 1. A description of the type of property agreement, or b) upon the licensee obtaining a clear description which unmistakably iden- sought by the buyer or tenant; any personal or financial information, tifies the property; 2. The commission or fee to be paid whichever occurs first; 9. All other terms and conditions under (including any and all bonuses); 11. The signatures of the buyers or ten- which the property is to be sold, leased, or 3. A definite beginning date; ants and the broker or agent as authorized by exchanged; 4. An expiration date; the broker; 10. Specification of whether or not the 5. The licensee’s duties and responsibil- 12. The type of agreement; and designated broker is authorized to cooperate ities; 13. All other terms and conditions pre- with and compensate other designated bro- 6. The signatures of the buyers or ten- scribed by the buyers or tenants. kers acting pursuant to any other brokerage ants and the broker or affiliated licensee as (B) The agreement shall contain no provi- relationship as defined by 339.710 to authorized by the broker; sion requiring a buyer or tenant to notify the 339.860, RSMo, including but not limited to 7. The type of agreement;

6 CODE OF STATE REGULATIONS (9/30/19) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

8. All other terms and conditions pre- a clear description which unmistakably iden- (K) Contain a statement which confirms scribed by the buyers or tenants; tifies the property; that the received the Broker Disclo- 9. Specification of whether or not the (E) Permission to enter and show the prop- sure Form prescribed by the commission: designated broker is authorized to cooperate erty; 1. On or before the signing of the bro- with and compensate other designated bro- (F) The commission or fee to be paid kerage relationship agreement; or kers acting pursuant to any other brokerage (including any and all bonuses); 2. Upon the licensee obtaining any per- relationship as defined by 339.710 to (G) All other terms and conditions pre- sonal or financial information, whichever 339.860, RSMo, including but not limited to scribed by the owners or ; occurs first; seller’s agents and/or other transaction bro- (H) Any addendums, riders, endorsements, (L) Contain the signatures of all the own- kers; and attachments, or changes to the written autho- ers and the broker or affiliated licensee as 10. A statement which confirms that the rization must contain the initials of all par- authorized by the broker; and buyer received the Broker Disclosure Form ties; and (M) Any addendums, riders, endorse- prescribed by the commission: a) on or (I) A statement which confirms that the ments, or attachments to the property man- before the signing of the transaction broker- owner or landlord received the Broker Dis- agement agreement or other written autho- age agreement, or b) upon the licensee closure Form prescribed by the commission: rization between a broker and the owners of obtaining any personal or financial informa- a) on or before the signing of the other writ- the real estate shall contain the signatures of tion, whichever occurs first. ten authorization, or b) upon the licensee all the owners and the broker or affiliated (B) The agreement shall contain no provi- obtaining any personal or financial informa- licensee as authorized by the broker. sion requiring a buyer or tenant to notify the tion, whichever occurs first. broker of intent to cancel the agreement after (10) The licensee shall give to the owner or the expiration date. (9) Every written the owner’s authorized agent a legible copy of (C) Any addendums, riders, endorsements, agreement or other written authorization every written property management agree- attachments, or changes to the agreement between a broker and the owners of the real ment or other written authorization at the must contain the initials of all parties. estate shall: time the signature of the owner is obtained. (D) The licensee shall give a legible copy (A) Identify the property to be managed; The licensee’s broker shall retain a copy of of every written agreement or other autho- (B) State the amount of fee or commission the written property management agreement rization to the buyer or tenant at the time the to be paid and when the fee or commission or other written authorization and a signed signatures are obtained and a copy of the will be paid; copy of any addendums, riders, endorse- agreement shall be retained in the broker’s (C) Specify whether security deposits and ments, or attachments to the written property office. prepaid rents will be held by the broker or the management agreement or other written (E) A licensee shall not negotiate or enter owner; authorization. into a brokerage service agreement with a (D) Contain the beginning date of the buyer or tenant if the licensee knows, or has agreement; AUTHORITY: sections 339.730, 339.740, reason to know, that the buyer or tenant has a (E) Provide the terms and conditions for 339.750, 339.755, and 339.820, RSMo 2000 written unexpired exclusive agreement with termination of the property management and sections 339.120 and 339.780, RSMo another broker, unless the buyer or tenant ini- agreement by the broker or the owner of the Supp. 2008.* This rule originally filed as 4 tiates the discussion and provided the licensee property; CSR 250-8.090. Original rule filed Nov. 14, has not directly or indirectly solicited the dis- (F) Include the licensee’s duties and 1978, effective Feb. 11, 1979. Amended: cussion, in which case the licensee may nego- responsibilities; Filed Aug. 12, 1982, effective Nov. 11, 1982. tiate and enter into an agreement which will Amended: Filed May 11, 1983, effective Aug. take effect after the expiration of the current (G) Contain a statement which permits or prohibits the designated broker from offering 11, 1983. Amended: Filed March 14, 1984, agreement. effective June 11, 1984. Amended: Filed Sept. (F) Transaction brokerage agreements may subagency (not applicable for transaction bro- ker agreements); 7, 1984, effective Dec. 13, 1984. Amended: not be assigned, sold, or otherwise trans- Filed Oct. 2, 1985, effective Dec. 26, 1985. ferred to another broker without the express (H) Contain a statement which permits or prohibits the designated broker and/or affili- Amended: Filed Oct. 26, 1987, effective July written consent of all parties to the original 1, 1988. Amended: Filed June 16, 1989, transaction brokerage agreement. ated licensee from acting as a disclosed dual agent and if permitted, the duties and respon- effective Sept. 28, 1989. Amended: Filed Sept. 1, 1989, effective Dec. 28, 1989. (8) Other Written Authorization. Written sibilities of a dual agent; Amended: Filed Nov. 15, 1991, effective June authorization to show residential property (I) Contain a statement which permits or 25, 1992. Amended: Filed Feb. 2, 1994, without an agency agreement or transaction prohibits the designated broker and/or affili- effective Aug. 28, 1994. Amended: Filed Dec. brokerage agreement with the owner/landlord ated licensee from acting as a transaction bro- 1, 1997, effective Sept. 1, 1998. Amended: must contain all of the following: ker and if permitted, the duties and responsi- Filed Jan. 14, 2000, effective July 30, 2000. (A) A definite beginning date; bilities of a transaction broker; Amended: Filed Nov. 3, 2003, effective April (B) An expiration date; (J) Include specification of whether or not 30, 2004. Moved to 20 CSR 2250-8.090, (C) The signatures of all owners or land- the designated broker is authorized to coop- effective Aug. 28, 2006. Amended: Filed Oct. lords and the broker or licensee as authorized erate with and compensate other designated 12, 2007, effective April 30, 2008. Amended: by the broker; brokers acting pursuant to any other broker- Filed April 3, 2009, effective Sept. 30, 2009. (D) The legal description or the complete age relationship as defined by sections street address of the property, which includes 339.710 to 339.860, RSMo, including but *Original authority: 339.120, RSMo 1941, amended 1963, the city where the property is located; or, in not limited to tenant’s agents and/or transac- 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008; the absence of a legal description or address, tion brokers; 339.730, RSMo 1996, amended 1998; 339.740, RSMo

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 7 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

1996, amended 1998; 339.750, RSMo 1996; 339.755, agency status no later than the first showing tion 339.710(19)(c), RSMo, shall disclose RSMo 1998, amended 1999; 339.780, RSMo 1996, to a seller/landlord who is not represented by this brokerage relationship no later than the amended 1998, 1999, 2004, 2005; 339.820, RSMo 1996, amended 1998, 1999. or working with another licensee pursuant to first showing to buyer/tenant who is not rep- sections 339.710 to 339.860, RSMo. resented by or working with another licensee 2. If the seller/landlord is represented by pursuant to sections 339.710 to 339.860, 20 CSR 2250-8.095 Brokerage Relationship another licensee, the disclosure may be made RSMo. Disclosure to the seller/landlord or their agent upon first 2. If the buyer/tenant is represented by contact with the seller/landlord or their another licensee, this disclosure may be made PURPOSE: The commission is proposing this agent, whichever occurs first. to the buyer/tenant or their agent upon first rule in order to comply with provisions in HB 3. If the buyer’s/tenant’s agent is coop- contact with the buyer/tenant or their agent, 1601 of the 89th General Assembly and HB erating with another licensee under a written whichever occurs first. 866 of the 90th General Assembly. agreement of subagency or through a unilat- 3. If the licensee has not entered into a eral offer of subagency, the disclosure made written transaction brokerage agreement with (1) Licensees acting with or without a written by the subagent shall serve as the disclosure the seller/landlord, the licensee shall disclose agreement for brokerage services pursuant to of the buyer’s/tenant’s agent. the licensee’s transaction broker status to the sections 339.710 to 339.860, RSMo, are 4. In a cooperative sale/lease between a seller/landlord upon establishing such rela- required to disclose such relationships in the buyer’s/tenant’s agent and a licensee working tionship with the seller/landlord. following instances and manner: with a seller/landlord as a transaction broker, 4. In a cooperative sale between a sell- (A) Seller’s/Landlord’s Agent or Subagent. the buyer’s/tenant’s agent shall make disclo- er’s/landlord’s transaction broker and a 1. A licensee acting as an agent or sub- sure of this agency status to the seller/land- licensee working with a buyer/tenant as a agent of the seller/landlord shall disclose this lord and also to the licensee assisting the sell- transaction broker, the seller’s/landlord’s agency status no later than the first showing er/landlord upon first contact with each transaction broker shall make disclosure of to a buyer/tenant who is not represented by or respective party. this brokerage relationship status to the working with another licensee pursuant to 5. In a contemplated real estate transac- buyer/tenant and also to the licensee assisting sections 339.710 to 339.860, RSMo. tion where no contact occurs with the sell- the buyer/tenant upon first contact with each 2. If the buyer/tenant is represented by er/landlord, their agent, or transaction bro- respective party. another licensee, the disclosure may be made ker, the buyer’s/tenant’s agent shall establish 5. In a contemplated real estate transac- to the buyer/tenant or their agent upon first first contact with the seller’s/landlord’s agent tion where no contact occurs with the contact with the buyer/tenant or their agent, or transaction broker and disclose this agency buyer/tenant, or their agent or transaction whichever occurs first. status prior to the presentation of an offer to broker, the seller’s/landlord’s transaction 3. If the seller’s/landlord’s agent is exchange, purchase, rent, or lease. broker shall disclose this brokerage relation- cooperating with another licensee under a 6. If the landlord’s agent or transaction ship status to the buyer’s/tenant’s agent or written agreement of subagency or through a broker is conducting property management transaction broker when first contact is estab- unilateral offer of subagency, the disclosure pursuant to 20 CSR 2250-8.200, the unli- lished pursuant to paragraph (B)5. or (E)5. of made by the subagent shall serve as the dis- censed office personnel may, in their perfor- this section. closure of the seller’s/landlord’s agent. mance of the duties enumerated in section 6. If the landlord’s transaction broker is 4. In a cooperative sale/lease between a 339.010.5(5)(a)–(e), RSMo, receive the dis- conducting property management pursuant to seller’s/landlord’s agent and a licensee work- closure described herein on behalf of the 20 CSR 2250-8.200, the unlicensed office ing with a buyer/tenant as a transaction bro- landlord’s agent or transaction broker; personnel may, in their performance of the ker, the seller’s/landlord’s agent shall make (C) Dual Agent. duties enumerated in section disclosure of this agency status to the 1. A licensee acting as a dual agent in a 339.010.5(5)(a)–(e), RSMo, make the disclo- buyer/tenant and also to the licensee assisting real estate transaction shall disclose this agen- sure described herein on behalf of the land- the buyer/tenant upon first contact with each cy status immediately upon its occurrence to lord’s transaction broker; respective party. all parties of a real estate transaction. (E) Transaction Broker Assisting Buy- 5. In a contemplated real estate transac- 2. In a non-designated agency transac- er/Tenant. tion where no contact occurs with the tion, the disclosure made by the licensee 1. A licensee assisting a buyer/tenant as buyer/tenant, their agent, or transaction bro- procuring the buyer/tenant (selling licensee) a transaction broker who has not been ker, the seller’s/landlord’s agent shall dis- shall serve as disclosure for the listing deemed a transaction broker pursuant to sec- close this agency status to the buyer’s/ten- licensee and designated broker. tion 339.710(19)(c), RSMo, shall disclose ant’s agent or transaction broker when first 3. A designated broker who becomes a this brokerage relationship no later than the contact is established pursuant to paragraph dual agent and does not personally represent first showing to a seller/landlord who is not (B)5. or (E)5. of this section. any of the parties in a designated agency represented by or working with another 6. If the landlord’s agent is conducting transaction shall not be required to make dis- licensee pursuant to sections 339.710 to property management pursuant to 20 CSR closure of this agency status provided written 339.860, RSMo. 2250-8.200, the unlicensed office personnel consent was given by all parties to the real 2. If the seller/landlord is represented by may, in their performance of the duties enu- estate transaction pursuant to 339.750.1, another licensee, this disclosure may be made merated in section 339.010.5(5)(a)–(e), RSMo; to the seller/landlord or their agent upon first RSMo, make the disclosure described herein (D) Transaction Broker Assisting contact with the seller/landlord or their on behalf of the landlord’s agent; Seller/Landlord. agent, whichever occurs first. (B) Buyer’s/Tenant’s Agent or Subagent. 1. A licensee assisting a seller/landlord 3. If the licensee has not entered into a 1. A licensee acting as an agent or sub- as a transaction broker who has not been written transaction brokerage agreement with agent of the buyer/tenant shall disclose this deemed a transaction broker pursuant to sec- the buyer/tenant, the licensee shall disclose

8 CODE OF STATE REGULATIONS (9/30/19) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

the licensee’s transaction broker status to the Amended: Filed April 3, 2009, effective Sept. mation on behalf of the landlord’s agent or buyer/tenant upon establishing such relation- 30, 2009. transaction broker. ship with the buyer/tenant. (B) A signed copy shall be given to the 4. In a cooperative sale/lease between a *Original authority: 339.120, RSMo 1941, amended 1963, seller/landlord and buyer/tenant and a signed buyer’s/tenant’s transaction broker and a 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008; copy shall be retained by the disclosing licensee working with a seller/landlord as a 339.720, RSMo 1996, amended 1998, 1999, 2002, 2005; licensee’s broker. If any party to the real transaction broker, the buyer’s/tenant’s trans- and 339.770, RSMo 1996, amended 1997, 1998, 2002. estate transaction refuses to sign the confir- action broker shall make disclosure of this mation, the licensee working with that party brokerage relationship status to the pursuant to 339.710 to 339.860, RSMo, shall seller/landlord and also to the licensee assist- 20 CSR 2250-8.096 Brokerage Relationship set forth, sign and date a written explanation ing the seller/landlord upon first contact with Confirmation of the facts of refusal and the explanation each respective party. shall be retained by the licensee’s broker. 5. In a contemplated real estate transac- PURPOSE: This rule outlines requirements tion where no contact occurs with the sell- for a brokerage relationship confirmation. (2) In a commercial real estate transaction er/landlord, their agent, or transaction bro- where the is prepared by ker, the buyer’s/tenant’s transaction broker (1) Licensees acting with or without a written legal counsel for the seller/landlord or shall establish first contact with the agreement for brokerage services pursuant to buyer/tenant, the written confirmation by the seller’s/landlord’s agent or transaction broker sections 339.710 to 339.860, RSMo, are party or parties who are represented by legal and disclose this brokerage relationship status required to have such relationships confirmed counsel shall not be required. prior to the presentation of an offer to in writing by each party to the real estate exchange, purchase, rent, or lease. transaction on or before such party’s first sig- AUTHORITY: sections 339.120, 339.780, 6. If the landlord’s agent or transaction nature to the real estate contract. Nothing and 339.720, RSMo Supp. 2008.* This rule broker is conducting property management contained herein prohibits the written confir- originally filed as 4 CSR 250-8.096. Original mation of brokerage relationships from being pursuant to 20 CSR 2250-8.200, the unli- rule filed Jan. 14, 2000, effective July 30, included or incorporated into the real estate censed office personnel may, in their perfor- 2000. Amended: Filed Nov. 3, 2003, effective contract, provided that any addendum or mance of the duties enumerated in section April 30, 2004. Moved to 20 CSR 2250- incorporated document containing the written 339.010.5(5)(a)–(e), RSMo, receive the dis- 8.096, effective Aug. 28, 2006. Amended: confirmation must include a separate signa- closure described herein on behalf of the Filed April 3, 2009, effective Sept. 30, 2009. ture section for acknowledging the written landlord’s agent or transaction broker; confirmation that shall be signed and dated by (F) Transaction Broker Pursuant to *Original authority: 339.120, RSMo 1941, amended 1963, each party to the real estate transaction. 339.710(19)(c), RSMo. 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008; (A) Written confirmation must— 1. A licensee who becomes a transaction 339.720, RSMo 1996, amended 1998, 1999, 2002, 2005; 1. Identify the licensee’s brokerage rela- broker pursuant to 339.710(19)(c), RSMo, and 339.780, RSMo 1996, amended 1998, 1999, 2004, tionship; shall disclose this transaction broker status 2005. 2. Identify the source or sources of com- immediately upon its occurrence to all parties pensation; to the real estate transaction to be confirmed 3. Confirm that the brokerage relation- 20 CSR 2250-8.097 Broker Disclosure in writing prior to the execution of the con- ships, if required by rule or regulation, were Form tract. disclosed to the seller/landlord and/or 2. The disclosure of the licensee procur- buyer/tenant or their respective agents and/or PURPOSE: This rule implements a statutory ing the buyer (selling licensee) shall serve as transaction brokers no later than the first requirement that licensees must present agen- disclosure for the listing licensee and desig- showing, upon first contact, or immediately cy alternatives to the public using a Broker nated broker. upon the occurrence of any change to that Disclosure Form prescribed by the Missouri 3. A designated broker who becomes a relationship; Real Estate Commission. transaction broker and does not personally 4. Confirm the seller’s/landlord’s and represent any of the parties in a designated buyer’s/tenant’s receipt of the Broker Disclo- (1) In a residential real estate transaction, at agency transaction shall not be required to sure Form prescribed by the commission; the earliest practicable opportunity during or make disclosure of this status provided writ- 5. Be signed and dated by the following the first substantial contact by the ten consent was given by all parties to the real seller/landlord and buyer/tenant. If the land- designated broker or the affiliated licensees estate transaction. lord has entered into a written property man- with a seller, landlord, buyer, or tenant who agement agreement pursuant to 20 CSR has not entered into a brokerage relationship AUTHORITY: sections 339.120, 339.720, 2250-8.200–20 CSR 2250-8.210, the land- as described in section 339.710.5, RSMo, the and 339.770, RSMo Supp. 2008.* This rule lord shall not be required to sign the written licensee shall provide that person with a writ- originally filed as 4 CSR 250-8.095. Original confirmation; and ten copy of the current Broker Disclosure rule filed Oct. 26, 1987, effective July 1, 6. Be signed and dated by the disclosing Form prescribed by the Missouri Real Estate 1988. Amended: Filed Sept. 1, 1989, effec- licensees on or before the contract date. If a Commission. In any event, a licensee shall tive Dec. 28, 1989. Amended: Filed Nov. 15, landlord’s agent or transaction broker is con- provide the party that has not entered into a 1991, effective June 25, 1992. Rescinded and ducting property management pursuant to 20 brokerage relationship as described in section readopted: Filed Dec. 1, 1997, effective Sept. CSR 2250-8.200–20 CSR 2250-8.210, the 339.710.5, RSMo, the Broker Disclosure 1, 1998. Rescinded and readopted: Filed Jan. unlicensed office personnel may, in their per- Form upon obtaining any personal or financial 14, 2000, effective July 30, 2000. Moved to formance of the duties enumerated in information or before the signing of a broker- 20 CSR 2250-8.095, effective Aug. 28, 2006. 339.010.5(5)(a)–(e), sign the written confir- age service agreement, whichever occurs first.

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 9 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

If a landlord’s agent or transaction broker is (3) Any change to a contract shall be initialed any service provided in connection with a conducting property management pursuant to by all buyers and sellers. Acceptance of each real estate sale, lease, trade, exchange or set- 20 CSR 2250-8.200, the unlicensed office fully executed contract shall include the date tlement including, but not limited to, the fol- personnel may, in their performance of the at which final agreement was reached either lowing: mortgage or other financing, title duties enumerated in section by 1) specific acknowledgement of final searches, title examinations, the provision of 339.010.5(5)(a)–(e), RSMo, provide a tenant acceptance date; or 2) date of the last signa- title certificates, , hazard insur- with a written copy of the current Broker Dis- ture or initial to the contract. ance, services rendered by an attorney, the closure Form prescribed by the commission preparation of documents, property surveys, on behalf of the landlord’s agent or transac- AUTHORITY: section 339.120, RSMo Supp. the rendering of credit reports or appraisals, tion broker. 1993.* This rule originally filed as 4 CSR pest, fungus, mechanical or other inspec- 250-8.100. Original rule filed Nov. 14, 1978, tions, services rendered by a (2) The brokerage relationship marked as effective Feb. 11, 1979. Amended: Filed Sept. or broker, and the handling of the processing offered on the Broker Disclosure Form shall 7, 1984, effective Dec. 13, 1984. Amended: and closing or settlement. correspond to the written office policy adopt- Filed Oct. 2, 1985, effective Dec. 26, 1985. 2. The term controlled business arrange- ed by the designated broker pursuant to Amended: Filed Oct. 26, 1987, effective July ment means an arrangement in which a real 339.760.1, RSMo. 1, 1988. Amended: Filed June 15, 1990, estate licensee, or an associate of a real estate effective Dec. 31, 1990. Amended: Filed Feb. licensee, has either an affiliate relationship AUTHORITY: sections 339.120 and 339.770, 2, 1994, effective Aug. 28, 1994. Moved to with or a direct or beneficial ownership inter- RSMo Supp. 2008.* This rule originally filed 20 CSR 2250-8.100, effective Aug. 28, 2006. est of more than one percent (1%) in a as 4 CSR 250-8.097. Original rule filed Dec. provider of settlement services. 1, 1997, effective Sept. 1, 1998. Amended: *Original authority: 339.120, RSMo 1941, amended 1963, 3. The term associate means one who Filed Jan. 14, 2000, effective July 30, 2000. 1967, 1981, 1988, 1993. has one (1) or more of the following relation- Amended: Filed Nov. 3, 2003, effective April ships with a real estate licensee: 30, 2004. Moved to 20 CSR 2250-8.097, 20 CSR 2250-8.110 Licensee’s Interest in A. A spouse, parent or child of a real effective Aug. 28, 2006. Amended: Filed Transactions; Relationship with Parties estate licensee; April 3, 2009, effective Sept. 30, 2009. B. A corporation or business entity that controls, is controlled by or is under *Original authority: 339.120, RSMo 1941, amended 1963, PURPOSE: This rule makes very clear the 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008 and licensee’s responsibility and relationship as common control with a real estate licensee; 339.770, RSMo 1996, amended 1997, 1998, 2002. an agent. It demands the licensee make dec- C. An employer, officer, director, laration of any personal involvement in a partner, franchisor or franchisee of a real transaction in which the licensee might have estate licensee; or 20 CSR 2250-8.100 Offers an interest. It prohibits his/her requiring the D. Anyone who has an agreement, parties in a transaction to use the service of arrangement or understanding with a real PURPOSE: This rule affirms that all offers to any lending, title insurance or other groups. estate licensee, the purpose or substantial sell shall contain all the terms and conditions It forbids any forms of related or direct prof- effect of which is to enable the real estate authorized by the owner. It demands that all it on expenditures made for a party in a licensee to refer settlement business to bene- written offers to buy must be submitted transaction. The licensee must disclose all fit financially from the referrals of that busi- promptly to the seller. material facts regarding the condition of ness. property which s/he is offering for sale or (B) A licensee who has a controlled busi- (1) Every licensee shall make certain that all lease. ness arrangement with a provider of settle- of the terms and conditions authorized by the ment services and who, directly or indirectly, principal in a transaction are specified and (1) A licensee shall not acquire an interest in, refers business to that provider or affirma- included in an offer to sell or buy and shall sell, buy, exchange, rent or lease any real tively influences the selection of that provider not offer the property on any other terms. estate, directly or indirectly, without first shall disclose the arrangement to the person Every written offer shall contain the legal making the licensee’s status as a licensee whose business is referred or influenced. description or property address, or both, and known in writing to the other parties in the This disclosure shall be given on a separate city where the property is located, or in the transaction. form and shall be signed by the person whose absence of, a clear description unmistakably business is referred or influenced. The dis- identifying the property. (2) Before buying, exchanging, selling or closure shall be given and signed before or at leasing real estate for another party, the substantially the same time that the business (2) Every licensee shall promptly tender to licensee shall disclose in writing any owner- is referred or the provider is selected. The the seller or seller’s agent every written offer ship which a licensee has or will have and the licensee shall retain a copy of the signed to purchase and shall promptly tender to the licensee’s status as a licensee to all parties to form. The form shall be in at least ten (10)- buyer or buyer’s agent any counteroffer made the transaction. point type and shall contain the following lan- by the seller, including any back-up contracts guage: properly identified as such, and upon procur- (3) A licensee shall not advise against or dis- DISCLOSURE OF REFERRAL ing a proper acceptance of an offer to pur- courage the use of the services of an attorney OF BUSINESS chase shall promptly deliver copies of the by any party in any real estate transaction. same, signed by both buyer and seller, to I understand that (Name of Real Estate each party to the transaction. A buyer or sell- (4) Directed or Controlled Business. Licensee) has an affiliate relationship with or er must be promptly advised when an offer or (A) Definitions. owns an interest in (Name of Company to counteroffer has been rejected. 1. The term settlement service includes Which Business is Being Referred) and is also

10 CODE OF STATE REGULATIONS (9/30/19) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

recommending that I employ this company *Original authority: 339.120, RSMo 1941, amended 1963, account. When the licensee receives all inter- for (Type of Service). 1967, 1981, 1988, 1993, 1995. est earned, interest payable to a licensee must 20 CSR 2250-8.120 Deposits to Escrow or be removed from the escrow account within Trust Account I realize that (Name of Real Estate Licensee) ten (10) banking days following the receipt of the next statement of the escrow account. may earn financial benefits from my use of PURPOSE: This rule requires all earnest this company. money be deposited in a noninterest bearing (5) In addition to the notification required by escrow account not later than ten (10) bank- section 339.105.2, RSMo, each broker shall I understand that I am not obligated to use ing days next following the execution of a consent upon the request of the commission this company, and may select a different com- contract. If the account is interest-bearing, or its agent to the examination and audit of pany if I wish to do so. all parties must be made aware. A salesper- the broker’s escrow or trust account by the son must immediately deliver to the broker all commission or its agent. As part of the con- This form has been fully explained to me. money received in connection with a transac- sent, each broker, upon opening any addi- tion in which s/he is engaged. tional account(s), shall execute a form enti- tled Consent to Examine and Audit Escrow or ______(1) All money received by a licensee as set Trust Account. (Date) out in section 339.100.2(1), RSMo shall be deposited in the escrow or trust account (6) Each check written on an escrow account ______maintained by the broker no later than ten or each corresponding check stub, or other (10) banking days following the last date on (Signature of Person Whose Business record of disbursement of funds from the which the signatures or initials, or both, of all is Being Referred) account and each deposit ticket shall indicate the parties to the contract are obtained, the related real estate transaction(s). Each unless otherwise provided in the contract. check written on an escrow account for com- The form may be modified to describe more Earnest money received prior to acceptance mission shall be made payable to the licensee accurately the nature of the service, the refer- of a written contract may be deposited into to whom the commission is owed or to the ring entity and the entity receiving the refer- the escrow account by the broker with the firm’s general operating account. ral, provided that its content and meaning are written authorization of the party(ies) provid- not changed in substance. ing the funds. (7) The designated broker and the branch (C) A licensee, directly or indirectly, shall office manager shall be responsible for the not require a party to a real estate sale or (2) A licensee shall immediately deliver to maintenance of the escrow account and shall lease to use and shall not condition the per- the broker with whom affiliated all money ensure the brokerage’s compliance with the formance of real estate brokerage services on received in connection with a real estate statutes and rules related to the brokerage the use by a party of any particular provider transaction in which the licensee is engaged. escrow account(s). of settlement services. (3) The escrow or trust account maintained AUTHORITY: sections 339.100, 339.105, and by a broker, as required by the license law, 339.120, RSMo Supp. 2011.* This rule orig- (5) A licensee shall comply in all respects shall be a checking account in a bank, savings inally filed as 4 CSR 250-8.120. Original with the requirements of the federal Real and loan, or credit union. If the escrow or rule filed Nov. 14, 1978, effective Feb. 11, Estate Settlement Procedures Act and corre- trust account maintained by a broker is an 1979. Amended: Filed March 12, 1982, sponding regulations, in transactions gov- interest-bearing account, the broker shall dis- effective June 11, 1982. Amended: Filed erned by the law and regulations. close in writing to all parties to the transac- March 14, 1984, effective June 11, 1984. tion that the account is interest-bearing and Amended: Filed Oct. 2, 1985, effective Dec. (6) An “as is clause” written into a contract the disclosure shall indicate who is to receive 26, 1985. Amended: Filed Dec. 15, 1986, for the sale of real estate does not relieve a the interest. effective March 26, 1987. Amended: Filed licensee of the requirements of section June 15, 1990, effective Dec. 31, 1990. 339.100.2(2), RSMo. (4) Each broker shall deposit into the escrow Amended: Filed Nov. 15, 1991, effective June or trust account all funds coming into the 25, 1992. Amended: Filed Feb. 2, 1994, AUTHORITY: section 339.120, RSMo Supp. broker’s possession as set out in section effective Aug. 28, 1994. Moved to 20 CSR 1997.* This rule originally filed as 4 CSR 339.100.2(1), RSMo, including funds in 2250-8.120, effective Aug. 28, 2006. Amend- 250-8.110. Original rule filed Nov. 14, 1978, which the broker may have some future inter- ed: Filed Oct. 27, 2011, effective April 30, effective Feb. 11, 1979. Amended: Filed est or claim and including, but not limited to, 2012. March 12, 1982, effective June 11, 1982. earnest money deposits, prepaid rents, secu- rity deposits, loan proceeds, and funds paid *Original authority: 339.100, RSMo 1941, amended 1978, Amended: Filed Aug. 12, 1982, effective Nov. by or for the parties upon closing of the trans- 1993, 2004, 2005, 2006, 2007, 2008; 339.105, RSMo 11, 1982. Amended: Filed Sept. 7, 1984, 1978, amended 1981, 1986, 1987, 2003, 2004; and action. No broker shall commingle personal effective Dec. 13, 1984. Amended: Filed Oct. 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, funds or other funds in the broker’s escrow 1993, 1995, 1999, 2004, 2008. 5, 1985, effective Dec. 26, 1985. Amended: account except to the extent provided by sec- Filed Dec. 15, 1986, effective March 26, tion 339.105.1, RSMo. Commissions payable 1987. Amended: Filed Sept. 18, 1990, effec- must be removed from the escrow account at 20 CSR 2250-8.130 Earnest and Escrow tive June 10, 1991. Amended: Filed Nov. 15, the time the transaction is completed. After Money; Disputes 1991, effective June 25, 1992. Amended: the transaction is completed, interest payable Filed Feb. 2, 1994, effective Aug. 28, 1994. shall be disbursed to the appropriate PURPOSE: This rule prohibits acceptance of Amended: Filed Dec. 1, 1997, effective Sept. party(ies) from the escrow account no later nonnegotiable securities as earnest money 1, 1998. Moved to 20 CSR 2250-8.110, effec- than ten (10) banking days following the without the knowledge and consent of the tive Aug. 28, 2006. receipt of the next statement of the escrow owner. In the event of a dispute over the

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 11 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

return of an earnest money deposit, it in which s/he is not acting as a broker, unless mortgages or of trust of record, all instructs the broker as to its proper disposi- s/he is one of the parties to the contract or money received by the broker in the transac- tion. instrument. tion, the amount, and payee(s) of all dis- bursements made by the broker. If the buyer (1) A broker shall not accept any note, non- (1) When acting as a broker in a transaction, and seller are represented by different bro- negotiable instrument or anything of value a broker may use current standardized forms kers, it shall be the responsibility of the list- not readily negotiable as earnest money in a including, but not limited to, contracts, agen- ing broker to deliver, or cause to have deliv- transaction without the signed, written con- cy disclosures, property management agree- ered, the closing statements. If a broker sent of the owner of the real estate. ments, listing agreements, warranty deeds, personally handles a closing, on the day of quit claim deeds, trust deeds, notes, security closing the broker shall sign and date the (2) In the event a dispute arises concerning instruments and , prepared or approved closing statement. the return or forfeiture of any monies or other by the broker’s counsel or by the counsel for valuables held by a broker in escrow, the bro- a trade association of which the broker is a (2) A broker may arrange for a closing to be ker shall continue to retain the money or member or associate member, or by a Mis- administered by a title company, an escrow valuables in escrow until a written release is souri state or local bar association and may company, a lending institution or an attorney, obtained from all parties consenting to its dis- complete them by filling in blank spaces to in which case the broker shall not be required position or until a civil action is filed to show the parties, property description and to sign the closing statement; however, it shall determine its disposition at which time pay- terms necessary to close the transaction the remain each broker’s responsibility to require ment may be made into the court. However, broker has procured. closing statements to be prepared, to review in the absence of a pending civil action or the closing statements to verify their accura- written release and upon passage of sixty (60) (2) A real estate broker shall not make a sep- cy and to deliver the closing statements to the days from the date of the dispute, a broker arate charge for completing any standardized buyer and the seller or cause them to be may disburse escrow monies or valuables to forms and shall not prepare those forms for delivered. The detailed closing statement either party to the transaction based upon a persons in transactions in which s/he is not shall contain all material financial aspects of good faith decision by the broker that the acting as a broker, unless the broker is one of the transaction, including the true sale price, opposite party has failed to perform as the parties to the contract or instrument or the earnest money received, any mortgages or agreed, but this disbursement shall only be owns or is employed by an escrow company deeds of trust of record, all monies received made after the broker has given fifteen (15) or closing firm which is handling the closing. by the broker, closing agent or company in days’ written notice by certified mail to all the transaction, the amount, and payee(s) of parties concerned at their last known address AUTHORITY: section 339.120, RSMo Supp. all disbursements made by the broker, closing setting forth the broker’s proposed action. 1993.* This rule originally filed as 4 CSR agency or company and the signatures of the The commission will not take disciplinary 250-8.140. Original rule filed Nov. 14, 1978, buyer and seller. action against a broker who in good faith dis- effective Feb. 11, 1979. Amended: Filed June burses escrow monies or other valuables pur- 15, 1990, effective Dec. 31, 1990. Amended: (3) The brokers for the buyer and the seller suant to this rule; however, nothing in this Filed Feb. 2, 1994, effective Aug. 28, 1994. shall retain legible copies of both buyer’s and rule relieves a broker of any civil action Moved to 20 CSR 2250-8.140, effective Aug. seller’s signed closing statements. which the damaged party may file in a court 28, 2006. of law nor does this rule require a broker to (4) A salesperson shall not conduct the clos- remove money or other valuables from the *Original authority: 339.120, RSMo 1941, amended 1963, ing of any real estate transaction except under 1967, 1981, 1988, 1993. broker’s escrow account when disposition is the direct supervision of the manager or bro- disputed by the parties. ker with whom the salesperson is associated. 20 CSR 2250-8.150 Closings and Closing AUTHORITY: section 339.120, RSMo Supp. Statements AUTHORITY: section 339.120, RSMo Supp. 1993.* This rule originally filed as 4 CSR 1997.* This rule originally filed as 4 CSR 250-8.130. Original rule filed Nov. 14, 1978, PURPOSE: This rule requires that a broker 250-8.150. Original rule filed Nov. 14, 1978, effective Feb. 11, 1979. Amended: Filed Sept. deliver a closing statement, containing a effective Feb. 11, 1979. Amended: Filed 7, 1984, effective Dec. 13, 1984. Amended: complete, accurate and detailed statement March 14, 1984, effective June 11, 1984. Filed Oct. 2, 1985, effective Dec. 26, 1985. showing all receipts and disbursements at the Amended: Filed Oct. 2, 1985, effective Dec. Amended: Filed Dec. 15, 1986, effective time a contract is consummated to the inter- 26, 1985. Amended: Filed Feb. 2, 1994, March 26, 1987. Amended: Filed Feb. 2, ested party. If the closing is handled by any- effective Aug. 28, 1994. Amended: Filed Dec. 1994, effective Aug. 28, 1994. Moved to 20 one other than the broker, it is the listing bro- 1, 1997, effective Sept. 1, 1998. Moved to 20 CSR 2250-8.130, effective Aug. 28, 2006. ker’s responsibility to deliver the closing CSR 2250-8.150, effective Aug. 28, 2006. *Original authority: 339.120, RSMo 1941, amended 1963, statement to the buyer and seller. *Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993. 1967, 1981, 1988, 1993, 1995. (1) Every broker shall deliver or cause to have delivered to the buyer and the seller in 20 CSR 2250-8.140 Standard Forms every real estate transaction where s/he acts 20 CSR 2250-8.155 Closing a Real Estate as a broker, at the time the transaction is con- Brokerage Firm PURPOSE: This rule instructs a broker as to summated, a complete, accurate and detailed his/her use and preparation of standard forms statement showing all material financial PURPOSE: This rule informs licensees of the approved by counsel. S/he may not complete aspects of the transaction, including the true procedures they need to follow when closing these forms for a separate charge for persons sale price, the earnest money received, any a real estate firm.

12 CODE OF STATE REGULATIONS (9/30/19) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

(1) Voluntary Closing. as the name, address, and phone number of or broker-associate’s estate or the legal rep- (A) A real estate brokerage shall be closed the custodian who will be storing the records resentative thereof— in the following manner. The individual bro- and files; 1. May, as provided in section ker or the designated broker shall— 3. Notify all licensees associated with 339.040.8, RSMo, apply for a temporary 1. Notify the commission in writing on the brokerage of the revocation/suspension broker license for the sole purpose of con- a form prescribed by the commission of the and return all licenses held by the broker to cluding pending business; effective date of the closing, the location the commission; 2. Shall follow the procedures estab- where the records will be stored, and that all 4. Notify all current listing, buyer or lished in section (1) for voluntary closing; requirements of 20 CSR 2250-8.155(1) have tenant agreement, and management contract and been met; clients as well as parties and co-brokers to 3. Shall notify the commission in writ- 2. Notify all licensees associated with existing contracts, in writing, advising of the ing on a form prescribed by the commission the brokerage in writing of the effective date date the brokerage will close. All listing, of the effective date of the closing, the loca- of closing. The licenses of any licensees asso- buyer, tenant, and management clients must tion where the records will be stored, and ciated with the brokerage at the time of clos- be advised in writing that they may enter into that all requirements of 20 CSR 2250- ing must be returned to the commission with a new listing, buyer, tenant, or management 8.155(3) have been met. the closing statement; agreement with the brokerage of their choice; 3. Notify all current listing, buyer or 5. Remove all advertising signs from all AUTHORITY: section 339.120, RSMo Supp. tenant agreement, and management contract which were listed with or managed 2008.* This rule originally filed as 4 CSR clients as well as parties and co-brokers to by the brokerage; 250-8.155. Original rule filed June 16, 1989, existing contracts, in writing, advising of the 6. Cancel or suspend all advertising and effective Sept. 28, 1989. Amended: Filed Feb. date the brokerage will close. All listing, telephone listing advertisements. In case of 2, 1994, effective Aug. 28, 1994. Amended: buyer, tenant, and management clients must suspension, post a notice of the suspension Filed Dec. 1, 1997, effective Sept. 1, 1998. be advised in writing that they may enter into period on the outside of the office in a promi- Amended: Filed June 28, 2002, effective Dec. a new listing, buyer, tenant, or management nent location. In case of revocation, the 30, 2002. Moved to 20 CSR 2250-8.155, agreement with the broker of their choice; licensee shall remove all office signs visible effective Aug. 28, 2006. Rescinded and read- 4. Remove all advertising signs from all to the public; opted: Filed April 3, 2009, effective Sept. 30, properties which were listed with or managed 7. Maintain all escrow or trust accounts 2009. by the brokerage. Arrange to cancel all adver- until all monies are transferred to a title com- tising in the name of the brokerage, including pany, a lending institution, an escrow compa- *Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008. office signs and telephone listing advertise- ny, or an attorney for closing the transaction, ments; or are otherwise properly disbursed as agreed 5. Maintain all escrow or trust accounts to in writing by the parties having an interest 20 CSR 2250-8.160 Retention of Records until all monies are transferred to a title com- in the funds; pany, an escrow company, or an attorney for 8. Arrange for pending contracts to be PURPOSE: This rule mandates that all closing of the transaction, or are otherwise closed by a title company, a lending institu- records relating to each real estate transac- properly disbursed as agreed to in writing by tion, an escrow company, or an attorney. tion handled by the broker be retained for the parties having an interest in the funds; Notify all parties involved in pending trans- three (3) years and the broker make them and actions as to the name, address, and tele- available for commission inspection at all 6. Arrange for pending contracts to be phone number of the closing agent. times. closed by a title company, a lending institu- 9. Notify the commission in writing on tion, an escrow company, or an attorney. In a form prescribed by the commission of the (1) Every broker shall retain for a period of the case of a sale, transfer, or merger of an location where the records will be stored and at least three (3) years true copies of all busi- existing brokerage, the acquiring broker may that all requirements of 20 CSR 2250- ness books; accounts, including voided close the pending transactions acquired from 8.155(2) have been met. checks; records; contracts; brokerage rela- the selling broker after having first obtained tionship agreements; closing statements and the express written consent of all parties to (3) Closing as a Result of Death or Disabili- correspondence relating to each real estate the transactions. Notify all parties involved in ty. Upon the death or disability of an individ- transaction that the broker has handled. The pending transactions as to the name, address, ual broker, or upon the death or disability of records shall be made available for inspection and telephone number of the closing agent. one (1) or more of the licensed broker-part- by the commission and its authorized agents ners, broker-officers, or broker-associates of at all times during usual business hours at the (2) Revocation/Suspension. a real estate partnership, corporation, or broker’s regular place of business. No broker (A) Individual Broker or Corporation, association in which the affairs of the part- shall charge a separate fee relating to reten- Partnership, or Association. Upon the revo- nership, corporation, or association cannot tion of records. cation or suspension of an individual broker, be carried on, the following procedures shall corporation, partnership, or association, the apply: (2) Every broker shall retain for a period of individual broker or designated broker (A) All licensees associated with the bro- at least three (3) years true copies of all prop- shall— ker, corporation, partnership, or association erty management agreements, correspon- 1. Cease all brokerage business immedi- must cease all brokerage activity until their dence or other written authorization relating ately upon the effective date of the suspen- licenses have been transferred to another bro- to each real estate transaction relating to leas- sion or revocation order; ker; and es, rentals or management activities the bro- 2. Notify the commission of the location (B) The administrator or executor of the ker has handled. The broker must also retain where records and files will be stored, as well broker’s, broker-officer’s, broker-partner’s, all business books, accounts and records

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 13 Secretary of State 20 CSR 2250-8—DEPARTMENT OF COMMERCE AND INSURANCE Division 2250—Missouri Real Estate Commission

unless these records are released to the (1) When managing property a licensee shall deposit in this account current rents and owner(s) or transferred to another broker by not rent or lease, offer to rent or lease, nego- monies received for payments to third parties. written detailed receipt or transmittal letter tiate, or offer or agree to negotiate, the rent A broker may establish and maintain addi- agreed to in writing by all parties to the trans- or lease, list or offer to list for lease or rent, tional property management escrow accounts action. assist or direct in procuring of prospects cal- as needed, provided the broker complies with culated to result in the lease or rent, assist or this rule and section 339.105, RSMo. A bro- AUTHORITY: sections 339.120, RSMo 2000 direct in the negotiation of any transaction ker is also required to deposit into an escrow and 339.770, RSMo Supp. 2003.* This rule calculated or intended to result in the lease or account, other than the property management originally filed as 4 CSR 250-8.160. Origi- rent, or show that property to prospective escrow account, security deposits and any nal rule filed Nov. 14, 1978, effective Feb. 11, renters or lessees unless the licensee’s broker rent, other than current rent, and to maintain 1979. Amended: Filed March 16, 1988, holds a current written property management these funds intact. This rule also requires a effective July 1, 1988. Amended: Filed Feb. agreement or other written authorization salesperson to immediately deliver to the bro- 2, 1994, effective Aug. 28, 1994. Amended: signed by the owner of the real estate or the ker money received in connection with prop- Filed Dec. 1, 1997, effective Sept. 1, 1998. owner’s authorized agent. erty management. This rule makes other spe- Amended: Filed Jan. 14, 2000, effective July cific requirements for the handling of 30, 2000. Amended: Filed Sept. 8, 2003, (2) A licensee who is managing the leasing or escrowed funds. rental of real estate shall not act as an agent effective March 30, 2004. Moved to 20 CSR in the sale or exchange of that real estate 2250-8.160, effective Aug. 28, 2006. (1) A broker shall establish and maintain a unless the licensee complies with the require- separate escrow account(s), to be designated *Original authority: 339.120, RSMo 1941, amended 1963, ments of 20 CSR 2250-8.090. as a property management escrow account(s), 1967, 1981, 1988, 1993, 1995, 1999 and 339.770, RSMo for the deposit of current rents and money 1996, amended 1997, 1998, 2002. AUTHORITY: section 339.120, RSMo Supp. received from the owner(s) or on the 2008.* This rule originally filed as 4 CSR owner’s(s’) behalf for payment of expenses 250-8.200. Original rule filed June 14, 1988, related to property management. Before mak- 20 CSR 2250-8.170 General effective Feb. 19, 1989. Amended: Filed Nov. ing disbursements from a property manage- 15, 1991, effective June 25, 1992. Amended: ment escrow account, a broker shall ensure PURPOSE: This rule stipulates the commis- Filed Feb. 2, 1994, effective Aug. 28, 1994. that the account balance for that owner’s(s’) sion’s authority to present a complaint to the Moved to 20 CSR 2250-8.200, effective Aug. property(ies) is sufficient to cover the dis- Administrative Hearing Commission against 28, 2006. Amended: Filed April 3, 2009, bursements. any licensee who is acting in any manner effective Sept. 30, 2009. inimical to the public interest. *Original authority: 339.120, RSMo 1941, amended 1963, (2) All security deposits held by a broker 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008. shall be maintained, intact, in an escrow (1) Failure of a licensee to respond in writ- account other than the property management ing, within thirty (30) days from the date of account(s), pursuant to section 339.105, the commission’s written request or inquiry, 20 CSR 2250-8.210 Management Agree- RSMo, unless the owner(s) have agreed oth- mailed to the licensee’s address currently ments erwise in writing. registered with the commission, will be suf- (Rescinded April 30, 2008) ficient grounds for taking disciplinary action (3) All money received by a broker in con- against that licensee. AUTHORITY: sections 339.120, 339.720, nection with any property management must 339.780 and 339.820, RSMo Supp. 1999. be deposited within ten (10) banking days to AUTHORITY: section 339.120, RSMo Supp. This rule originally filed as 4 CSR 250-8.210. the escrow or trust account maintained by the 1993.* This rule originally filed as 4 CSR Original rule filed June 14, 1988, effective broker. 250-8.170. Original rule filed Nov. 14, 1978, Feb. 19, 1989. Amended: Filed Feb. 2, 1994, effective Feb. 11, 1979. Amended: Filed June effective Aug. 28, 1994. Amended: Filed Jan. (4) A shall immediately 16, 1989, effective Sept. 28, 1989. Amended: 14, 2000, effective July 30, 2000. Moved to deliver to the supervising broker all money Filed Feb. 2, 1994, effective Aug. 28, 1994. 20 CSR 2250-8.210, effective Aug. 28, 2006. received in connection with any property Moved to 20 CSR 2250-8.170, effective Aug. Rescinded: Filed Oct. 12, 2007, effective management. 28, 2006. April 30, 2008.

(5) The property management escrow *Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993. 20 CSR 2250-8.220 Escrow or Trust account(s) maintained by the broker shall be Account and a Separate Property Manage- an account in a bank, savings and loan, or ment Escrow Account Required credit union. 20 CSR 2250-8.200 Management Agree- ment Required PURPOSE: This rule removes any uncertain- (6) Fees or commissions payable to a broker ty as to how monies received in connection must be withdrawn from a property manage- PURPOSE: This rule regulates the employ- with the management or rental of real estate ment escrow account at least once a month ment contract between a broker and a mem- are required to be maintained. A broker must unless otherwise agreed in writing. Any rent ber of the public so that the public will know establish and maintain a separate escrow paid in advance as a deposit for the last what s/he may expect from the licensee who account as a property management escrow month’s rent or as rent other than the current is managing the leasing or rental of real account to act as an operating account for the month’s rent held by a broker shall be estate. rental property(ies) managed. A broker must deposited in the property management escrow

14 CODE OF STATE REGULATIONS (9/30/19) JOHN R. ASHCROFT Secretary of State Chapter 8—Business Conduct and Practice 20 CSR 2250-8

account unless otherwise agreed to in writ- ing.

(7) In addition to the notification required by section 339.105.2, RSMo, each broker, upon the request of the commission or its agent, shall consent to the examination and audit of the broker’s property management escrow account(s) by the commission or its agent. As part of the consent, each broker shall execute a form presented to him/her by the commis- sion or its agent entitled Consent to Examine and Audit Escrow or Trust Account.

(8) Each check written on an escrow account, or each corresponding check stub, or other record of disbursement of funds from the account and each deposit ticket shall indicate the related transaction. Each check written on an escrow account for licensee fees or com- mission shall be made payable to the licensee who is owed the fee or commission or to the firm’s general operating account.

AUTHORITY: sections 339.120 and 339.105, RSMo Supp. 2008.* This rule originally filed as 4 CSR 250-8.220. Original rule filed June 14, 1988, effective Feb. 19, 1989. Amended: Filed Feb. 2, 1994, effective Aug. 28, 1994. Amended: Filed June 28, 2002, effective Dec. 30, 2002. Moved to 20 CSR 2250-8.220, effective Aug. 28, 2006. Amended: Filed April 3, 2009, effective Sept. 30, 2009.

*Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993, 1995, 1999, 2004, 2008 and 339.105, RSMo 1978, amended 1981, 1986, 1987, 2003, 2004.

20 CSR 2250-8.230 Security Deposits: Dis- putes

PURPOSE: This rule points out that disputes over security deposits are governed by other law.

(1) The return of security deposits to lessees and disputes with lessees are governed by section 535.300, RSMo and any other appli- cable law.

AUTHORITY: section 339.120, RSMo Supp. 1993.* This rule originally filed as 4 CSR 250-8.230. Original rule filed June 14, 1988, effective Feb. 19, 1989. Moved to 20 CSR 2250-8.230, effective Aug. 28, 2006.

*Original authority: 339.120, RSMo 1941, amended 1963, 1967, 1981, 1988, 1993.

JOHN R. ASHCROFT (9/30/19) CODE OF STATE REGULATIONS 15 Secretary of State