What to do if the Designated Officer is Unavailable

We recently received a call from a brokerage indicating that the designated officer was on vacation, but a form had to be signed by that designated officer. This issue has come up in the past. For example, how should a brokerage address a situation if the designated officer becomes incapacitated or passes away?

The California Bureau of Real Estate permits brokerages to designated additional licensed officers. To become an additional licensed officer, the individual must pay a fee and file Form RE-201. Additional licensed officers may sign documents that would generally call for the signature of the designated officer, including certifying and terminating agents.

It is recommended that any large corporate brokerage specify an additional licensed officer in the event that the designated officer becomes unavailable.

Shannon B. Jones, Partner, sbj@sbj-law.com