This text of Idaho § 54-2016 (PRIMARY IDAHO LICENSES FOR LEGAL BUSINESS ENTITIES, SOLE PROPRIETORSHIPS AND BRANCH OFFICES — ADDITIONAL REQUIREMENTS) is published on Counsel Stack Legal Research, covering Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(1)Legal business entities. Each legal business entity, as defined in section 54-2004, Idaho Code, shall be licensed by the Idaho real estate commission to engage in the real estate business in Idaho and shall make proper application, pay all required fees and meet all requirements listed below.
(a)Each legal business entity shall have a properly licensed individual designated broker who shall be held responsible for the activities of the licensed entity.
(b)The individual designated broker shall, within three (3) years immediately prior to the designation, satisfactorily complete a commission-approved business conduct and office operations course.
(c)The individual designated broker shall also hold the following legal position within the licensed entity:
(i)Corporation — an officer;
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(1) Legal business entities. Each legal business entity, as defined in section 54-2004, Idaho Code, shall be licensed by the Idaho real estate commission to engage in the real estate business in Idaho and shall make proper application, pay all required fees and meet all requirements listed below.
(a) Each legal business entity shall have a properly licensed individual designated broker who shall be held responsible for the activities of the licensed entity.
(b) The individual designated broker shall, within three (3) years immediately prior to the designation, satisfactorily complete a commission-approved business conduct and office operations course.
(c) The individual designated broker shall also hold the following legal position within the licensed entity:
(i) Corporation — an officer;
(ii) Partnership or limited partnership — a general partner;
(iii) Limited liability company — a member or manager.
The individual designated broker for any business entity shall have full authority to act on behalf of the licensed business entity and shall submit sufficient and satisfactory proof thereof with the application for license. Such proof shall include a list of the entity’s officers, directors, members or managers, as reflected in the minutes, resolutions or other similar business documents of the entity. All acts of that individual as designated broker shall be considered acts of the licensed business entity. Nothing in this section is intended to create liability to a legal business entity for illegal or fraudulent acts by the individual broker performed solely on his own account.
(d) A license issued to a legal business entity, as defined in this chapter, is effective only as long as the individual designated broker’s license is in active status and in effect. If the individual so designated has a license refused, revoked, suspended or otherwise made inactive by the commission, or if the individual designated broker voluntarily surrenders the individual license or ceases to be connected with the entity in the manner required above, the business entity shall have ten (10) business days in which to designate another qualified individual as designated broker before the entity’s license is terminated, and the licenses of all associated licensees are made inactive.
(e) One (1) individual may act as designated broker for more than one (1) licensed business entity, however, all entities shall have their main offices in the same physical location.
(f) Satisfactory proof of mandatory errors and omissions insurance shall be provided for both the individual designated broker and the licensed business entity.
(g) A legal business entity doing business under an assumed name shall provide satisfactory proof of having legally filed a certificate of assumed name with the Idaho secretary of state.
(2) Sole proprietorships. An individual designated broker not licensed with a legal business entity, as defined in section 54-2004, Idaho Code, shall be licensed as a sole proprietor. Each sole proprietorship seeking a real estate license shall meet all of the following requirements:
(a) A licensed sole proprietor doing business under an assumed business name shall provide satisfactory proof of having legally filed a certificate of assumed name with the Idaho secretary of state;
(b) Satisfactory proof of mandatory errors and omissions insurance shall be provided for the licensed designated broker of a sole proprietorship;
(c) The individual designated broker shall have satisfactorily completed a commission-approved business conduct and office operations course within three (3) years immediately prior to the application for license.
(3) Multiple business names prohibited. A legal business entity or sole proprietorship shall be licensed under only one (1) business name.
(4) Branch offices. Each branch office in which trust funds and original transaction files are maintained shall be separately licensed in accordance with the following:
(a) The designated broker establishing the branch office shall submit an application, along with the required fee for the issuance or renewal of the branch office license.
(b) The designated broker shall designate in the application a branch manager, who shall be an associate broker and who, within three (3) years immediately prior to the designation, shall have completed a commission-approved business conduct and office operations course, to regularly occupy and be responsible for the supervision of the branch office. When a branch manager is a regular full-time employee or is engaged in a full-time activity at a location other than the place he is licensed to do business, a presumption will be made that the branch manager is unable to responsibly supervise the branch; provided however, the presumption may be overcome by evidence to the contrary which the commission determines to be satisfactory.
(c) A branch manager shall not be licensed to manage more than one (1) branch office at a time.
(d) A license issued to a branch office is valid and in effect only as long as the license of the designated broker remains in active status.
(e) No separate branch office license or manager is required for business locations other than the main office unless trust funds or original transaction records are kept at the branch.
(f) If a separate real estate trust account is maintained for a branch office, all records and related files for that account shall be maintained at the branch office.
(g) Each branch office or business location, whether separately licensed or not, shall conduct business only in the licensed name of the legal entity or sole proprietor.
[54-2016, added 2000, ch. 285, sec. 3, p. 919; am. 2001, ch. 123, sec. 5, p. 424; am. 2002, ch. 220, sec. 4, p. 611; am. 2005, ch. 105, sec. 2, p. 330; am. 2005, ch. 107, sec. 3, p. 340; am. 2007, ch. 98, sec. 2, p. 286; am. 2008, ch. 142, sec. 1, p. 407; am. 2010, ch. 213, sec. 2, p. 462.]