§514B-132 - Managing agents.

§514B-132
Managing agents.
(a) Every managing agent shall:

(1) Be a:

(A) Licensed
real estate broker in compliance with chapter 467 and the rules of the
commission. With respect to any requirement for a corporate managing agent in
any declaration or bylaws recorded before July 1, 2006, any managing agent
organized as a limited liability company shall be deemed to be organized as a
corporation for the purposes of this paragraph, unless the declaration or
bylaws are expressly amended after July 1, 2006 to require that the managing
agent be organized as a corporation and not as a limited liability company; or

(B) 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 associations managed;

(3) Obtain
and keep current a fidelity bond in an amount equal to $500 multiplied by the
aggregate number of units of the association managed by the managing agent;
provided that the amount of the fidelity bond shall not be less than $20,000
nor greater than $500,000. 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 requirements 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
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's 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
nonregistration 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;

(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,
and apply the fidelity bond proceeds, if any, to reduce the association's
loss. If more than one association suffers a loss, the managing agent shall
divide the proceeds among the associations in proportion to each association's
loss. An association may request a court order requiring the managing agent to
act promptly and diligently to recover from the fidelity bond. If an
association cannot recover its loss from the fidelity bond proceeds of the
managing agent, the association 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

(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 supporting documents
fail to meet the requirements of this chapter and the rules adopted pursuant
thereto.

(d) The registration requirements of this
section shall not apply to active real estate brokers in compliance with and
licensed under chapter 467.

(e) If a managing agent receives a request
from the commission to distribute any commission-generated information, printed
material, or documents to the association, its board, or unit owners, the
managing agent shall make the distribution at the cost of the association
within a reasonable period of time after receiving the request. The
requirements of this subsection apply to all managing agents, including
unregistered managing agents. [L 2004, c 164, pt of §2; am L 2006, c 273, §21]

Revision Note

"July 1, 2006" substituted for "the effective
date of this chapter".