§514A-95 - Managing agents.

§514A-95
Managing agents. (a) Every
managing agent shall:

(1) Be licensed
as a real estate broker in compliance with chapter 467 and the rules of the
commission or be a corporation authorized to do business under article 8 of
chapter 412;

(2) Register with
the commission prior to conducting managing agent activity through approval of
a completed registration application, payment of fees, and submission of any
other additional information set forth by the commission. The registration
shall be for a biennial period with termination on December 31 of an
even-numbered year. The commission shall prescribe a deadline date prior to
the termination date for the submission of a completed reregistration
application, payment of fees, and any other additional information set forth by
the commission. Any managing agent who has not met the submission requirements
by the deadline date shall be considered a new applicant for registration and
subject to initial registration requirements. The information required to be
submitted with any application shall include the name, business address, phone
number, and names of association of apartment owners managed;

(3) Obtain and
keep current a fidelity bond in an amount equal to $500 multiplied by the
aggregate number of apartments of the association of apartment owners managed
by the managing agent; provided that the amount of the fidelity bond shall not
be less than $20,000 nor greater than $100,000. Upon request by the
commission, the managing agent shall provide evidence of a current fidelity
bond or a certification statement from an insurance company authorized by the
insurance division of the department of commerce and consumer affairs
certifying that the fidelity bond is in effect and meets the requirement of
this section and the rules adopted by the commission. The managing agent shall
permit only employees covered by the fidelity bond to handle or have custody or
control of any association of apartment owners funds, except any principals of
the managing agent that cannot be covered by the fidelity bond. The fidelity
bond shall protect the managing agent against the loss of any association of
apartment owners' moneys, securities, or other properties caused by the
fraudulent or dishonest acts of employees of the managing agent. Failure to
obtain or maintain a fidelity bond in compliance with this chapter and the
rules adopted pursuant thereto, including failure to provide evidence of the
fidelity bond coverage in a timely manner to the commission, shall result in non-registration
or the automatic termination of the registration, unless an approved exemption
or a bond alternative is presently maintained. A managing agent who is unable
to obtain a fidelity bond may seek an exemption from the fidelity bond
requirement from the commission. The commission shall adopt rules establishing
the conditions and terms by which it may grant an exemption or a bond
alternative, or permit deductibles;

(4) Act promptly
and diligently to recover from the fidelity bond, if the fraud or dishonesty of
the managing agent's employees causes a loss to an association of apartment
owners, and apply the fidelity bond proceeds, if any, to reduce the association
of apartment owners' loss. If more than one association of apartment owners
suffers a loss, the managing agent shall divide the proceeds among the
associations of apartment owners in proportion to each association of apartment
owners' loss. An association of apartment owners may request a court order
requiring the managing agent to act promptly and diligently to recover from the
fidelity bond. If an association of apartment owners cannot recover its loss
from the fidelity bond proceeds of the managing agent, the association of
apartment owners may recover by court order from the real estate recovery fund
established under section 467-16; provided that:

(A) The loss is caused by the fraud,
misrepresentation, or deceit of the managing agent or its employees;

(B) The managing agent is a licensed real
estate broker; and

(C) The association of apartment owners
fulfills the requirements of sections 467-16 and 467-18 and any applicable
rules of the commission;

(5) Pay a
nonrefundable application fee and, upon approval, an initial registration fee,
and subsequently pay a reregistration fee, as prescribed by rules adopted by
the director of commerce and consumer affairs pursuant to chapter 91. A
compliance resolution fee shall also be paid pursuant to section 26-9(o) and
the rules adopted pursuant thereto; and

(6) Report
immediately in writing to the commission any changes to the information
contained on the registration application or any other documents provided for
registration. Failure to do so may result in termination of registration and
subject the managing agent to initial registration requirements.

(b) The
commission may deny any registration or reregistration application or terminate
a registration without hearing if the fidelity bond and its evidence fail to
meet the requirements of this chapter and the rules adopted pursuant thereto.

(d) The
registration and fidelity bond requirements of this section shall not apply to
active real estate brokers in compliance with and licensed under chapter 467.
[L 2007, c 244, pt of §2]