Code of Vermont Rules › Agency 04 - SECRETARY OF STATE › Sub-Agency 030 - OFFICE OF PROFESSIONAL REGULATION › Chapter 290 - REAL ESTATE COMMISSION; ADMINISTRATIVE RULES › Section 04 030 290 - REAL ESTATE COMMISSION; ADMINISTRATIVE RULES

Current through June, 2024
Part 1 General Information
Section 1.1 The Commission's Purpose
The Vermont Real Estate Commission ("Commission") is
				responsible for enforcing Vermont's real estate licensing laws. The purpose of
				the Commission is to protect the public health, safety and welfare. The
				Commission does this by, among other things, setting standards for issuing
				licenses and registrations, licensing and registering only qualified
				applicants, approving education and continuing education courses and regulating
				license and registration holders and their practices.
Section 1.2 Business Address
Vermont Real Estate Commission
Office of Professional Regulation
89 Main Street, 3rd Floor
Montpelier, VT 05620-3402
These rules and more information about the Commission and its
				requirements and procedures are available at
www.sec.state.vt.us/professional-regulation
or by contacting the office.
Section
			 1.3 Commission Members
The Commission is composed of seven members, including three
				licensed brokers, one licensed salesperson, one attorney, and two public
				members. The Governor appoints each member,
				26 V.S.A. §
												2251.
Section 1.4 Regular, Special and Emergency
			 Meetings
The Commission usually meets monthly. The chair or two of the
				members may call a special or emergency meeting. A majority of the Commission
				constitutes a quorum for all meetings. No formal action at any meeting is valid
				unless a majority of those present and voting concur.
Meeting dates and locations can be obtained from the
				Commission's website at
www.sec.state.vt.us/professional-regulation/profession/real-estate-commission
.
Section 1.5 Laws That Govern the Commission
(a) The Commission is created by law, Title
			 26, V.S.A., Chapter 41, which establishes its responsibilities for setting
			 standards, issuing licenses and regulating the profession. In addition, the
			 Commission is subject to several other state laws such as the Administrative
			 Procedure Act (Title 3, V.S.A., Chapter 25), the "Law of Professional
			 Regulation" (Title 3, V.S.A., Sections 121-131 ), the "Right to Know Law"
			 (Title 1, V.S.A., Sections 311-314 ), and the "Access to Public Records Law"
			 (Title 1, V.S.A., Sections 315-320 ). These laws spell out the rights of
			 applicants, licensees, and members of the public.
(b) The Vermont Statutes Annotated contain
			 the complete text of these laws. They can usually be found in any Town Clerk's
			 office or public library. The Vermont Statutes Online are also available at
			 legislarure.vermont.gov. The Commission's statutes and rules maybe accessed
			 through the Commission's website at
			 sec.state.vt.us/professional-regulation/profession/real-estate-commission.
Section 1.6 Rules
(a) The Commission is authorized to make
			 these rules under Title 26, V.S.A., Section 2252. These rules are approved by
			 the Vermont Legislative Committee on Administrative Rules and have the effect
			 of law and govern the Commission's proceedings. Rules are made following the
			 Administrative Procedure Act ("APA"). The Office of Professional Regulation
			 ("OPR") helps the Commission to comply with the Act. Rules are reviewed and
			 revised periodically.
(b)
			 Legislative changes from time to time may create inconsistencies between
			 statutes and administrative rules. When rules and statutes conflict, the
			 statutes govern.
Section
			 1.7 Making and Resolving Complaints
(a) Any person may make a complaint against a
			 broker or salesperson by contacting OPR or obtaining a copy of the complaint
			 form from the Commission's website at
www.sec.state.vt.us/professional-regulation/profession/real-estate-commission
.
(b) The Commission follows the current
			 investigation and disciplinary procedure adopted from time to time by OPR,
			 except where the Commission's published procedures provide otherwise. Copies of
			 the procedure, complaint forms, and more information about the complaint
			 process may be found at
www.sec.state.vt.us/professional-regulation
.
Section 1.8 Definitions
As used in these rules:
(a) "Advertising" includes print ads of any
			 type, internet, email, or electronic media, stationery, business cards,
			 individual "For Sale" signs and other audio, visual or print depictions or
			 notices of real estate offered for sale or brokerage services.
(b) "Broker in Charge" means the individual
			 broker responsible for a single office.
(c) "Broker Prelicensing Course" means a
			 course of instruction to become a broker, at least 40 hours long, which has
			 been approved by the Commission.
(d) "Brokerage Services" means those
			 activities requiring a license, specifically listed in
			 26 V.S.A. §
												2211(a)(4).
(e) "Brokerage Firm" means a business entity
			 which is engaged in brokerage services.
(f) "Buyer" includes a person who buys,
			 offers to buy, intends to buy, or is interested in buying real
			 estate.
(g) "Client" means the
			 person(s) with whom a brokerage firm and its licensees, or designated
			 licensees, has an agency relationship related to the negotiation, sale,
			 purchase, or exchange of an interest in real estate. Licensees owe a fiduciary
			 duty to their clients.
(h)
			 "Continuing Education" means instruction approved by the Commission.
(i) "Designated Agency" means the practice by
			 which one or more licensees affiliated with a brokerage firm is appointed to
			 act as an agent of the brokerage firm's buyer or seller client. Designated
			 Agents owe the client the duties of a fiduciary.
(j) "Exclusive Agency Marketing Agreement"
			 means a seller service agreement which expressly reserves to the owner the
			 right to sell or market the property himself or herself without liability to
			 the brokerage firm for a commission or fee, and which grants the brokerage firm
			 the right to market the property, but which prohibits the owner from listing
			 the property with any other brokerage firm for the term of the
			 agreement.
(k) "Exclusive Buyer
			 Agency Agreement" means a buyer service agreement by which a buyer engages a
			 single brokerage firm to provide brokerage services, and by which the buyer
			 agrees not to obtain services from any other broker, but which expressly
			 reserves to the buyer the right to purchase property himself or herself without
			 liability to the brokerage firm for a commission or fee.
(l) "Exclusive Right to Market Agreement"
			 means a seller service agreement which grants to the brokerage firm the
			 exclusive right to market the property, and which recognizes a liability on the
			 part of the owner for a commission or fee to the brokerage firm, even if the
			 property is sold by the owner.
(m)
			 "Exclusive Right to Represent Buyer Agreement" means a buyer service agreement
			 which grants to the brokerage firm the exclusive right to act on behalf of the
			 buyer in a real estate purchase, and which recognizes a liability on the part
			 of the buyer for a commission or fee to the brokerage firm, even if a property
			 is purchased without assistance by the brokerage firm.
(n) "Fiduciary Duty" means the duty to act
			 for the benefit of the client in all matters relating to the agency
			 relationship. A fiduciary must put the interest of the client ahead of the
			 interests of the agent and any third party. Fiduciaries must disclose all
			 material facts the fiduciary learns about the transaction, must disclose any
			 knowledge gained from other parties to the client's transaction, must protect
			 the client's confidences and act with reasonable care, loyalty, and obedience
			 toward the client. Unless otherwise agreed, the duty to protect a client's
			 confidences continues after the brokerage service agreement expires or is
			 otherwise terminated.
(o)
			 "Licensee" means a person holding any license issued by the
			 Commission.
(p) "Material Fact"
			 means a fact that might cause a buyer or seller to make a different decision
			 with regards to entering into or remaining in a contract or affect the price
			 paid or received for real property.
(q) "Net Listing" means a brokerage service
			 agreement in which, at some point, the benefit of negotiating a higher price
			 for the seller or a lower price for the buyer accrues only to the agent or
			 brokerage firm and not to the client. Net listing is a prohibited practice. See
			 Rule 4.8(e).
(r) "Non-Designated
			 Agency" means the practice by which all licensees affiliated with a brokerage
			 firm act as the agent of the brokerage firm's clients. All licensees affiliated
			 with the brokerage firm owe the client the duties of a fiduciary.
(s) "Nonexclusive" or "Open" with respect to
			 a seller service agreement means a seller service agreement which expressly
			 reserves to the owner the right to list the property with other brokerage firms
			 or to sell the property himself or herself. It shall also mean a buyer service
			 agreement that allows the buyer to obtain brokerage services from other
			 brokerage firms or purchase a property himself or herself.
(t) "OPR" means the Office of Professional
			 Regulation.
(u) "Principal Broker"
			 means the individual broker responsible for the brokerage firm and all
			 associated branch offices.
(v)
			 "Salesperson Prelicensing Course" means a course of instruction to become a
			 salesperson, at least 40 hours long, which has been approved by the
			 Commission.
(w) "Salesperson
			 Post-Licensure Education" means a course of instruction, which has been
			 approved by the Commission, which satisfies, or counts toward satisfying, the
			 hours of required education after obtaining an initial salesperson
			 license.
(x) "Seller" includes a
			 person who sells, offers to sell, intends to sell, or is interested in selling
			 real estate.
(y) "Supervising
			 Licensee" in a designated agency firm means a licensee of the brokerage firm
			 who is selected by the brokerage firm's principal broker or broker in charge to
			 act in a supervisory capacity for different licensees within the brokerage firm
			 whose clients wish to participate in the same transaction. This individual
			 shall not be a licensee who represents one of the clients in the
			 transaction.
(z) "Vicariously
			 Responsible" means accountability of a principal broker or broker in charge for
			 unprofessional conduct by a licensee.
(aa) "V.S.A." means Vermont Statutes
			 Annotated.