(1) If two or more principal real estate brokers are associated with the same registered business name, the principal real estate brokers shall:

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(a) Execute one or more written supervisory agreements between them that:

(A) Fully allocate the supervisory control and responsibility for the professional real estate activities of all real estate brokers associated with the registered business name;

(B) Include a default allocation of supervisory control and responsibility for any real estate brokers who associate with the registered business name in the future or who are otherwise omitted from the written supervisory agreement; and

(C) Include any supervisory control and responsibility of one principal real estate broker over another principal real estate broker;

(b) Update the written supervisory agreement if the disassociation of a principal real estate broker occurs that affects the allocation of supervisory control or responsibility; and

(c) Share equal supervisory control and responsibility for any professional real estate activity conducted by real estate brokers associated with the registered business name that is not otherwise covered by the written supervisory agreement.

(2) If a licensed real estate property manager is associated with the same registered business name as any combination of licensed real estate property managers and principal real estate brokers, the licensed real estate property managers and principal real estate brokers shall:

(a) Execute one or more written supervisory agreements between them that:

(A) Fully allocates supervisory control and responsibility for management of rental real estate conducted by all principal real estate brokers and licensed real estate property managers associated with the registered business name; and

(B) Includes any arrangement for supervisory control and responsibility over the management of rental real estate conducted by the licensed real estate property managers and principal real estate brokers;

(b) Update the written supervisory agreement if another licensed real estate property manager or principal real estate broker associates with the registered business name; and

(c) Update the written supervisory agreement if the disassociation of a licensed real estate property manager or principal real estate broker occurs that affects the allocation of supervisory control or responsibility over management of rental real estate.

(3) Licensed real estate property managers and principal real estate brokers who do not exercise administrative or supervisory control over one another are each responsible for their own management of rental real estate. [Amended by 1977 c.649 § 42; 1981 c.617 § 15; 2001 c.300 § 31; 2017 c.234 § 21]