Team Regulations (effective February 21, 2022)
Is your team in compliance with the new requirements for teams? The Department of Business Regulation has announced that the final regulations will go into effect on February 21st.
Key provisions of the regulations:
- Confirms that teams cannot have their own escrow account.
- Confirms that all advertising, including signs and social media, must include the name of the broker more conspicuously than the name of the team or licensee. (This applies to all licensees, whether a member of a team or not.)
- Requires all teams to have “team” or “group” in their team name to avoid consumer confusion.
- Prohibits the following words or variations to be used in team names: Agency, Associates, Brokerage, Brokers, Company, Corporation, Corp., Inc., Firm, LLC, L P,LLP, Partners, Partnership, Property, Properties, or Realty.
- Allows teams to form a single-member LLC to collect money from team members to pay joint expenses.
- Confirms that licensees, including team members, must be paid by the brokerage.
- Requires principal brokers to review team names logo; monitor team advertising; keep a current list of team members; and supervise teams.
- Requires teams to identify all licensed team members who will assist a consumer on the Mandatory Real Estate Relationship Disclosure form.
Watch our Hot Topics video on the new team rules to learn more.
Mandatory Insurance for Residential Landlords (effective January 1, 2022)
As of January 1, 2022, owners who rent residential dwelling units must obtain a general liability insurance policy with minimum coverage of $100,000 to cover people who are injured in or on the rental property as a result of the landlord’s negligence. webserver.rilegislature.gov//Statutes/TITLE34/34-18/34-18-22_1.htm
The landlord must provide a copy of the declaration page to the tenant along with the rental at the start of the tenancy and each time that the insurance policy is renewed.
If the landlord fails to comply, the tenant can pursue remedies, such as terminating the rental agreement; actual damages; obtaining injunctive relief, and, in some cases, reimbursement for attorney’s fees. 34-18-28 (rilegislature.gov)
Landlords should consult an insurance agent to determine whether it makes sense to increase the limits of the policy to protect their assets.
For more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected].
Fair Housing/ADA Education (effective January 4, 2022)
A new Rhode Island law requires real estate licensees to complete a minimum of three hours of approved continuing education about federal, Rhode Island or local fair housing laws or treatment of individuals with disabilities before you renew your license.
- This requirement applies to renewals only and must be met during every 24-month renewal cycle starting in 2022.
- This requirement does not apply to licensees whose license was first issued before December 12, 1984; attorneys who obtained a broker’s licensee without examination, and holders of a reciprocal license.
- Prelicensing candidates will be tested on federal and Rhode Island fair housing law but are not required to complete an additional three-hour fair housing class.
New DBR Internet and Social Media Regulations in 2022: Click here to review.