Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2250 - Missouri Real Estate Commission › Chapter 8 - Business Conduct and Practice › Section 20 CSR 2250-8.110 - Licensee's Interest in Transactions; Relationship with Parties

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule makes very clear the licensee's
				  responsibility and relationship as an agent. It demands the licensee make
				  declaration of any personal involvement in a transaction in which the licensee
				  might have an interest. It prohibits his/her requiring the parties in a
				  transaction to use the service of any lending, title insurance or other groups.
				  It forbids any forms of related or direct profit on expenditures made for a
				  party in a transaction. The licensee must disclose all material facts regarding
				  the condition of property which s/he is offering for sale or
				  lease.
(1) A licensee shall
				not acquire an interest in, sell, buy, exchange, rent or lease any real estate,
				directly or indirectly, without first making the licensee's status as a
				licensee known in writing to the other parties in the transaction.
(2) Before buying, exchanging, selling or
				leasing real estate for another party, the licensee shall disclose in writing
				any ownership which a licensee has or will have and the licensee's status as a
				licensee to all parties to the transaction.
(3) A licensee shall not advise against or
				discourage the use of the services of an attorney by any party in any real
				estate transaction.
(4) Directed or
				Controlled Business.
(A) Definitions.
1. The term settlement service includes any
				service provided in connection with a real estate sale, lease, trade, exchange
				or settlement including, but not limited to, the following: mortgage or other
				financing, title searches, title examinations, the provision of title
				certificates, title insurance, hazard insurance, services rendered by an
				attorney, the preparation of documents, property surveys, the rendering of
				credit reports or appraisals, pest, fungus, mechanical or other inspections,
				services rendered by a real estate agent or broker, and the handling of the
				processing and closing or settlement.
2. The term controlled business arrangement
				means an arrangement in which a real estate licensee, or an associate of a real
				estate licensee, has either an affiliate relationship with or a direct or
				beneficial ownership interest of more than one percent (1%) in a provider of
				settlement services.
3. The term
				associate means one who has one (1) or more of the following relationships with
				a real estate licensee:
A. A spouse, parent
				or child of a real estate licensee;
B. A corporation or business entity that
				controls, is controlled by or is under common control with a real estate
				licensee;
C. An employer, officer,
				director, partner, franchisor or franchisee of a real estate licensee;
				or
D. Anyone who has an agreement,
				arrangement or understanding with a real estate licensee, the purpose or
				substantial effect of which is to enable the real estate licensee to refer
				settlement business to benefit financially from the referrals of that
				business.