Thriving Through an Audit: Delegation Agreements: DBrief Episode: 12

00:14:37
https://www.youtube.com/watch?v=_5uLrGNHPWA

摘要

TLDRThe video introduces a series aimed at helping Washington realtors understand audit processes, particularly focusing on delegation agreements between designated and managing brokers. Key principles discussed include the importance of delegation agreements in maintaining compliance, their role in audits, and how they help clarify responsibilities within real estate firms. The experts emphasize that while authority can be delegated, responsibility cannot. The series intends to keep realtors informed and prepared for audits with the goal of thriving in their practice.

心得

  • 📅 New video series: 'Thriving Through an Audit' launching soon.
  • 🧑‍⚖️ Bill and Kathy from Department of Licensing explain key audit issues.
  • 📜 Delegation agreements allow managing brokers to take on certain duties.
  • ⚖️ Designated brokers retain ultimate responsibility, even with delegation.
  • 👥 It's important for realtors to understand their responsibilities and compliance.
  • 🕵️‍♂️ Audits may scrutinize delegation agreements during investigations.
  • 💬 Realtors are encouraged to ask questions through the legal hotline.
  • 📈 Delegation agreements provide clarity and protect brokers during audits.
  • 📍 Delegation agreements are essential for branch managers as well.
  • 🔍 Forward-thinking is vital for designated brokers in handling their firm's structure.

时间轴

  • 00:00:00 - 00:05:00

    Manny Simmons introduces a new video series aimed at empowering Washington realtors, focusing on audit issues and license law. He introduces Bill Dutra and Kathy McDonald, who will provide insights on delegation agreements, proper folder management, and required office policies. The series aims to equip designated brokers with the necessary tools to thrive during audits, emphasizing the importance of delegation agreements in managing responsibilities within real estate firms.

  • 00:05:00 - 00:14:37

    The discussion highlights that a delegation agreement allows designated brokers to delegate certain duties to managing brokers while retaining ultimate responsibility. Bill and Kathy explain the requirements for these agreements, including the need for them to be signed by both parties. They stress that while the content of the agreement may not be scrutinized during audits, it becomes crucial in the event of complaints or litigation. The importance of having clear delegation agreements is emphasized as a means of protection for designated brokers and firms.

思维导图

视频问答

  • What is a delegation agreement?

    A delegation agreement is an agreement between the designated broker and a managing broker that allows the managing broker to take on certain duties while the designated broker retains ultimate responsibility.

  • Do I need a delegation agreement for branch managers?

    Yes, a delegation agreement is required for branch managers to clarify responsibilities, even if they are designated through a licensing process.

  • Can a delegation agreement be unsophisticated?

    Yes, the content does not need to be complex or drafted by an attorney for the agreement to be accepted in audits, though it may be scrutinized in case of complaints.

  • What happens if no delegation agreement is in place?

    Without a delegation agreement, the designated broker retains full responsibility under Washington's license law.

  • How can delegation agreements protect designated brokers?

    They provide a clear written record of who is responsible for specific actions within the firm, potentially protecting the designated broker in audits or legal matters.

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  • 00:00:07
    hi I'm Manny fit Simmons I'm your
  • 00:00:08
    Washington realtor legal hotline lawyer
  • 00:00:10
    this is the first in a thre part debrief
  • 00:00:15
    series that's going to introduce a
  • 00:00:17
    Friday video series and this is a a
  • 00:00:19
    video series that I
  • 00:00:21
    am extremely excited to bring to you um
  • 00:00:25
    it's fun for me to work with these two
  • 00:00:27
    people who you probably don't know going
  • 00:00:30
    to tell you who they are in a minute um
  • 00:00:32
    but it's I'm also excited for you
  • 00:00:35
    because you are getting to hear from the
  • 00:00:37
    ultimate source regarding audit issues
  • 00:00:41
    and license law issues the whack
  • 00:00:45
    requirement supporting license law
  • 00:00:47
    issues from these two individuals Bill
  • 00:00:50
    Dutra Kathy McDonald Bill who are you so
  • 00:00:54
    I work with the Department of Licensing
  • 00:00:56
    the business and professions division
  • 00:00:58
    one of the great things that I get to do
  • 00:01:00
    besides support 38 different professions
  • 00:01:02
    is meet with our licensing Partners
  • 00:01:04
    Washington realators Northwest Multiple
  • 00:01:06
    Listing Service to name a few that's
  • 00:01:08
    what I do for the department now I've
  • 00:01:10
    been there for just over 30 years and I
  • 00:01:13
    spent the majority of my time working
  • 00:01:15
    with the real estate professions I will
  • 00:01:16
    tell you that as a hotline lawyer if I
  • 00:01:18
    have a question that I can't answer with
  • 00:01:20
    regard to license law or the wax that
  • 00:01:23
    support license law my my final stop for
  • 00:01:27
    answers is Bill one of my preliminary
  • 00:01:30
    stops might be Kathy McDonald Kathy who
  • 00:01:33
    are you I am the audit supervisor for
  • 00:01:36
    the real estate program um I have nine
  • 00:01:38
    Auditors that I supervise I've worked
  • 00:01:40
    with the Department in the audit unit
  • 00:01:42
    for over 16 years and it's my pleasure
  • 00:01:46
    and my staff's pleasure actually to get
  • 00:01:48
    to work with the lenses um my Auditors
  • 00:01:51
    love their jobs they like engaging with
  • 00:01:53
    the lenses and helping them come into
  • 00:01:54
    compliance so that's what we do and so
  • 00:01:57
    the title of this video series and the
  • 00:02:00
    Friday video series that we're
  • 00:02:01
    introducing as well is called thriving
  • 00:02:05
    through an audit we want to empower you
  • 00:02:08
    as designated Brokers to have the tools
  • 00:02:10
    that you need to believe that you will
  • 00:02:12
    be equipped the next time an auditor
  • 00:02:13
    shows up in your office or I guess
  • 00:02:15
    online now electronically they show up
  • 00:02:17
    in your office more currently remotely
  • 00:02:20
    yeah um that you will be prepared to
  • 00:02:23
    thrive through that audit so in this
  • 00:02:26
    debrief episode we're going to cover the
  • 00:02:28
    question of Delegation agreements and
  • 00:02:30
    then in two additional debrief episodes
  • 00:02:33
    we will cover uh proper folder
  • 00:02:35
    management and required office
  • 00:02:38
    policies we are also going to bring to
  • 00:02:42
    you the three of us bring to you
  • 00:02:45
    Educational Tools that you can use for
  • 00:02:48
    with working with your the brokers in
  • 00:02:50
    your office in the form of Friday videos
  • 00:02:52
    talking about compliance issues that
  • 00:02:54
    pertain directly to your Brokers and to
  • 00:02:57
    you as well but specifically to your
  • 00:02:58
    brokers so in this video I'm sorry in
  • 00:03:01
    this episode let's discuss delegation
  • 00:03:04
    agreements who wants to describe what is
  • 00:03:07
    a delegation agreement so I'll start a
  • 00:03:09
    delegation agreement is an agreement
  • 00:03:11
    between the firm the designated broker
  • 00:03:12
    and a managing broker licensed to your
  • 00:03:15
    firm the delegation agreement allows
  • 00:03:17
    that managing broker to have some duties
  • 00:03:19
    and responsibilities in place of the
  • 00:03:21
    designated broker however something to
  • 00:03:24
    remember is that this does not eliminate
  • 00:03:27
    ultimately the designated broker's
  • 00:03:28
    responsibilities to that firm into that
  • 00:03:30
    licensing law this is just adding
  • 00:03:33
    another person there that can help the
  • 00:03:35
    designated broker run the firm they're
  • 00:03:37
    very common with really large firms or
  • 00:03:39
    with people that work in cooperatives
  • 00:03:41
    within those firms that there's a group
  • 00:03:42
    of lenses working together there are
  • 00:03:45
    many times where a delegation agreement
  • 00:03:47
    will come in handy and is required okay
  • 00:03:49
    let's pick up in a minute on on when it
  • 00:03:51
    is required um but I want to give
  • 00:03:54
    everybody a quotable quote that I
  • 00:03:56
    learned from Bill long ago and this just
  • 00:03:58
    summarizes so perfectly what he just
  • 00:04:01
    said Annie here's what I can tell you
  • 00:04:03
    about a delegation agreement a
  • 00:04:05
    delegation agreement can delegate
  • 00:04:06
    Authority it cannot delegate
  • 00:04:08
    responsibility so while a designated
  • 00:04:10
    broker can give authority to a managing
  • 00:04:12
    broker to to provide certain services to
  • 00:04:16
    provide to fulfill certain duties that
  • 00:04:18
    the designated broker is required to
  • 00:04:20
    fulfill the designated broker can never
  • 00:04:22
    Shield themselves from responsibility or
  • 00:04:25
    even liability by using a delegation
  • 00:04:28
    agreement Kath there are some um
  • 00:04:31
    specific requirements of a delegation
  • 00:04:33
    agreement can you talk about what those
  • 00:04:35
    are uh yeah from an audit perspective
  • 00:04:37
    when we look at the delegation agreement
  • 00:04:39
    we expect it to be signed by the
  • 00:04:40
    designated broker and the managing
  • 00:04:42
    broker that the duties are being
  • 00:04:44
    delegated to we look for that during the
  • 00:04:46
    course of an audit to make sure that
  • 00:04:48
    exists we don't necessarily scrutinize
  • 00:04:50
    the content of the delegation agreement
  • 00:04:52
    that is something that would more come
  • 00:04:53
    about in the like if there was a
  • 00:04:55
    complaint during an investigation to see
  • 00:04:59
    what type of Duties have been delegated
  • 00:05:01
    if possibly there's supervision and
  • 00:05:04
    within the complaint there's something
  • 00:05:06
    in there that shows that okay what who
  • 00:05:08
    was responsible for the supervision of
  • 00:05:09
    this liy who is reviewing the contracts
  • 00:05:12
    for this liy at this time when this
  • 00:05:14
    complaint was made so then the the
  • 00:05:17
    content of that delegation agreement
  • 00:05:19
    would become much more important at that
  • 00:05:20
    time due to the fact that we might need
  • 00:05:23
    to see okay not only is the designated
  • 00:05:25
    broker still responsible but what kind
  • 00:05:27
    of responsibility does this this or this
  • 00:05:29
    managing broker have in regard to this
  • 00:05:32
    complaint okay so what I heard you just
  • 00:05:35
    say correct me if I'm wrong is that you
  • 00:05:38
    might be doing an audit you might be
  • 00:05:40
    reviewing a folder transaction folder
  • 00:05:43
    that was put together by a broker who's
  • 00:05:46
    been licensed less than two years and
  • 00:05:47
    maybe that folder indicates that Mary
  • 00:05:49
    Smith not the designated broker but but
  • 00:05:52
    a broker named Mary Smith has reviewed
  • 00:05:55
    that that broker's work what I just
  • 00:05:58
    heard you say is that your auditor is
  • 00:06:01
    going to look for a delegation agreement
  • 00:06:03
    where the designated broker has
  • 00:06:05
    delegated the authority to review that
  • 00:06:09
    broker who's been licensed less than two
  • 00:06:11
    years work that that the authority to
  • 00:06:14
    review that work has been delegated to
  • 00:06:15
    Mary Smith correct right yeah and and
  • 00:06:18
    what I heard you also say is so long as
  • 00:06:20
    that delegation agreement is in place
  • 00:06:23
    even if it not um sophisticatedly
  • 00:06:26
    drafted as long as it's there you're the
  • 00:06:28
    department the auditing department is
  • 00:06:30
    satisfied right we we don't dictate that
  • 00:06:32
    it has to be prepared by an attorney if
  • 00:06:35
    if it's their own document we don't look
  • 00:06:37
    at it from that perspective but what I
  • 00:06:39
    also heard you say is that
  • 00:06:42
    if somehow or another that transaction
  • 00:06:46
    Finds Its way to be the subject of a
  • 00:06:48
    complaint or even litigation then the
  • 00:06:51
    actual form the content the language
  • 00:06:54
    used in that delegation agreement could
  • 00:06:57
    be scrutinized by lawyers by judges by
  • 00:06:59
    administrative law judge and so it may
  • 00:07:02
    turn out that having those delegation
  • 00:07:05
    agreements drafted by legal council
  • 00:07:07
    could be important in some circumstances
  • 00:07:09
    yeah for sure so designated Brokers you
  • 00:07:12
    and you're managing Brokers can create
  • 00:07:14
    delegation agreements that will enable
  • 00:07:17
    your managing Brokers to provide certain
  • 00:07:21
    duties that you would have otherwise
  • 00:07:23
    owed to your
  • 00:07:24
    Brokers whether or not that delegation
  • 00:07:28
    agreement is competent to withstand the
  • 00:07:30
    scrutiny of litigation or um a complaint
  • 00:07:35
    that might be filed against you or your
  • 00:07:38
    firm that's a question that can only be
  • 00:07:41
    answered in hindsight which means that
  • 00:07:44
    you may want to at the front end of
  • 00:07:47
    things hire legal counsel ask your
  • 00:07:50
    firm's lawyer to assist you in drafting
  • 00:07:52
    delegation agreements you're not
  • 00:07:54
    required to Kathy doesn't say if it's
  • 00:07:56
    not drafted by a lawyer then you're out
  • 00:07:58
    of compliance she's not going to say
  • 00:08:00
    that but if a push comes to shove and
  • 00:08:04
    you have to stand on that delegation
  • 00:08:06
    agreement then it might matter how it's
  • 00:08:08
    drafted bill you said a few minutes ago
  • 00:08:11
    um that the delegation agreement is
  • 00:08:15
    required when a designated
  • 00:08:18
    broker has has another broker managing
  • 00:08:21
    broker take on certain duties for the
  • 00:08:24
    designated Brer did I summarize that
  • 00:08:26
    correctly so can you give any examples
  • 00:08:29
    of that can you explain to us what you
  • 00:08:30
    mean by that so if using your example um
  • 00:08:34
    if you have a managing broker that is
  • 00:08:36
    reviewing the the agreements for the
  • 00:08:39
    firm especially for Brokers under
  • 00:08:41
    heightened supervision then you need to
  • 00:08:43
    delegate those authorities and that
  • 00:08:45
    responsibility to a managing broker that
  • 00:08:47
    would be one example that we' use having
  • 00:08:50
    a delegation agreement again allows that
  • 00:08:52
    man that designated broker to give some
  • 00:08:54
    of those duties to a managing broker to
  • 00:08:57
    uh deal with very difficult situations
  • 00:08:59
    ation releasing a listing of all things
  • 00:09:01
    if there's a problem with a with a
  • 00:09:03
    customer a managing broker can do that
  • 00:09:05
    they can't do that unless there's that
  • 00:09:07
    delegation in place between the firm and
  • 00:09:09
    the designated broker and that managing
  • 00:09:11
    broker so you just made me think of
  • 00:09:13
    something and and I will say that that
  • 00:09:16
    bill and Cathy have taught me something
  • 00:09:18
    today about the the use of Delegation
  • 00:09:22
    agreements I think that I would have
  • 00:09:24
    said on the hotline that you did not
  • 00:09:27
    have to have a delegation agreement in
  • 00:09:29
    as many circumstances as as Bill and
  • 00:09:31
    Kathy think it would be important but
  • 00:09:33
    here's what I have learned from them as
  • 00:09:35
    they've spoken is that delegation
  • 00:09:37
    agreements while they might be required
  • 00:09:41
    under the law when you've assigned
  • 00:09:43
    duties to somebody else I'm also hearing
  • 00:09:46
    that they provide a layer of protection
  • 00:09:49
    to designated Brokers and the firm by
  • 00:09:52
    making it very clear in writing who is
  • 00:09:57
    who is supposed to be doing certain
  • 00:09:59
    actions within the firm because if
  • 00:10:02
    there's no delegation agreement then
  • 00:10:03
    designated
  • 00:10:04
    Brokers and even when there is a
  • 00:10:06
    delegation agreement but if there's no
  • 00:10:08
    delegation agreement you clearly have
  • 00:10:10
    every single
  • 00:10:12
    responsibility um under Washington's
  • 00:10:14
    license law the minimum duties under the
  • 00:10:16
    agency law and all of the wax that
  • 00:10:18
    support those those pieces of
  • 00:10:20
    legislation but if you have delegated
  • 00:10:24
    authority to another broker and that
  • 00:10:28
    broker's uh or the the Fulfillment of
  • 00:10:30
    those duties comes under scrutiny
  • 00:10:32
    through a complaint
  • 00:10:34
    legation then the fact that you have
  • 00:10:36
    delegated that authority to somebody
  • 00:10:38
    else if you can show that in
  • 00:10:41
    writing that could be very important to
  • 00:10:44
    the protection of you in your firm is
  • 00:10:46
    that is that a fair summary I think it's
  • 00:10:48
    a fair summary because when we receive
  • 00:10:50
    complaints and we look at things before
  • 00:10:52
    we make a decision that we're going to
  • 00:10:54
    take action against someone's license we
  • 00:10:55
    look at all of the aggravating and
  • 00:10:57
    mitigating factors of what happens I
  • 00:10:59
    would also mention is that um real
  • 00:11:03
    estate has changed in the last 10 years
  • 00:11:05
    it's changed in the last five years with
  • 00:11:07
    the way that firms are set up and the
  • 00:11:08
    way that people are working we have
  • 00:11:10
    people that their licensed firm is in
  • 00:11:12
    Seattle but they've set up shop in
  • 00:11:14
    Spokane they're working in Spokane and
  • 00:11:17
    if you have Brokers on the other side of
  • 00:11:19
    the state I know with technology we all
  • 00:11:21
    talk with each other via Zoom probably
  • 00:11:23
    too much now but I think this is a great
  • 00:11:26
    opportunity for designated Brokers to
  • 00:11:27
    have a good look at what's going on in
  • 00:11:28
    their terms have those conversations
  • 00:11:31
    this allows them to set expectations set
  • 00:11:34
    requirements of who's responsible for
  • 00:11:36
    what and when and if that makes most
  • 00:11:39
    sense for that designated broker to give
  • 00:11:41
    some of those responsibilities to
  • 00:11:43
    somebody who's a managing broker who's
  • 00:11:45
    working in Spokane who's licensed in
  • 00:11:47
    Seattle I think that's a great time to
  • 00:11:49
    have those conversations and put in
  • 00:11:50
    there what it is that you need them to
  • 00:11:52
    do to make their job easier and to make
  • 00:11:55
    your clients jobs easier and to make it
  • 00:11:58
    really clear what that direction has
  • 00:12:00
    been yes so okay I think that I think
  • 00:12:03
    that's probably worth gold right there
  • 00:12:05
    designated
  • 00:12:06
    Brokers look be forward looking in what
  • 00:12:12
    what is happening within your firm if
  • 00:12:14
    your firm is isolated to one single
  • 00:12:16
    physical location great if it's spread
  • 00:12:19
    out all over the state great no rules
  • 00:12:22
    about what that should look like but you
  • 00:12:25
    are responsible for everything that's
  • 00:12:28
    happening what whatever your firm
  • 00:12:30
    structure might be and so what bill just
  • 00:12:32
    said is designated Brokers take control
  • 00:12:35
    of this issue and be Forward Thinking
  • 00:12:36
    now forward looking now to see what is
  • 00:12:40
    actually happening within your firm
  • 00:12:42
    structure and to the extent a delegation
  • 00:12:44
    agreement would not only clarify the
  • 00:12:47
    role that managing Brokers are playing
  • 00:12:49
    but even potentially protect you as the
  • 00:12:51
    designated broker in an audit or an
  • 00:12:53
    investigation
  • 00:12:54
    scenario get those Des delegation
  • 00:12:56
    agreements in place now one thing we
  • 00:12:58
    haven't talked about yet what how does a
  • 00:13:00
    delegation agreement play into Branch
  • 00:13:02
    management what is what's the
  • 00:13:04
    relationship there so so basically the
  • 00:13:07
    expectation is the same so um as far as
  • 00:13:10
    a branch manager they have they have
  • 00:13:12
    certain responsibilities that are
  • 00:13:13
    delegated just by them accepting that
  • 00:13:15
    position and taking that designation
  • 00:13:17
    because it's an actual ler Pro process
  • 00:13:20
    right but in addition to that there may
  • 00:13:22
    be other things that the delegation
  • 00:13:24
    agreement may include with that branch
  • 00:13:26
    manager so it isn't just the things that
  • 00:13:28
    happen
  • 00:13:29
    by license law it can also be other
  • 00:13:31
    things that may be delegated and we have
  • 00:13:33
    the same expectation during an audit
  • 00:13:36
    that that will be signed by the
  • 00:13:37
    designated broker and the branch manager
  • 00:13:39
    we do run across that commonly that they
  • 00:13:41
    don't realize they need them for branch
  • 00:13:43
    managers but but it's required no matter
  • 00:13:45
    no matter what whether it's a branch
  • 00:13:47
    manager and a designated broker or
  • 00:13:48
    whether it's a managing broker that's
  • 00:13:50
    just delegated delegated specific duties
  • 00:13:52
    or specific activities for that firm or
  • 00:13:55
    Branch okay anything else on this topic
  • 00:13:57
    no
  • 00:14:00
    if you have questions on anything we've
  • 00:14:02
    talked about in this
  • 00:14:04
    episode send me a question W realtor.org
  • 00:14:08
    following the links to the legal hotline
  • 00:14:12
    I may need backup on the questions that
  • 00:14:14
    you've asked and if so I'm coming back
  • 00:14:16
    to you guys for that stay tuned though
  • 00:14:19
    for two more episodes in the debrief
  • 00:14:21
    Series where we're going to bring
  • 00:14:22
    information specifically to you
  • 00:14:24
    designated Brokers and then the Friday
  • 00:14:26
    video series entitled thriving through
  • 00:14:29
    an
  • 00:14:29
    audit thank you for being a Washington
  • 00:14:32
    realtorss member
标签
  • Washington realtor
  • audit
  • delegation agreement
  • license law
  • real estate compliance
  • designated broker
  • managing broker
  • branch manager
  • Department of Licensing
  • agency law