24.210.828    UNPROFESSIONAL CONDUCT FOR PROPERTY MANAGEMENT LICENSEES

(1) In any transaction in which a property management licensee is involved as a licensee or as a party, has held self out as a licensee, or in which any party has reasonably relied on a licensee's status as a licensee, violation of any statute or rule administered by the board may be considered by the board in determining whether or not the licensee has failed to meet the generally accepted standards of practice.

(2) If the board determines that a licensee has committed an act that violates a statute or the rules administered by the board, such act shall be deemed an act against the interest of the public for which the board may take disciplinary action permitted by law against the licensee.

(3) In addition to all other provisions contained in the statutes and rules administered by the board, the following are considered unprofessional conduct:

(a) failing to maintain a level of knowledge customary for licensees of this state, including laws and rules administered by the board;

(b) violating laws and rules affecting any transaction in which the licensee acts;

(c) engaging in activities that constitute the practice of law;

(d) engaging the services of any attorney, insurance agent, maintenance service, or other like person or like entity, on behalf of a principal, third-party, or other person, without informing and obtaining consent from the person obligated to pay for the services;

(e) engaging or recommending the services of an attorney, insurance company, maintenance service, or other like person or entity, on behalf of a principal, third-party, or other person, without disclosing any family relationship, financial relationship, and/or financial interest that the licensee or property management agency with which the licensee is associated may have in that person or entity being engaged or recommended;

(f) falsifying documents, or placing signatures on documents without authority of a written power of attorney from the party, or committing any act of forgery, fraud, misrepresentation, deception, misappropriation, conversion, theft, or any other like act;

(g) failing to make reasonable efforts to perform all obligations arising from any agreement entered into;

(h) acting as a broker without holding that license separately;

(i) violating the landlord tenant laws of Title 70, chapter 24, MCA;

(j) violating the state and federal human rights statutes;

(k) violating the Americans with Disabilities Act;

(l) violating the residential tenants' security deposits laws of Title 70, chapter 25, MCA;

(m) violating the landlord and tenant residential and commercial laws of Title 70, chapter 26, MCA;

(n) violating the Montana Residential Mobile Home Lot Rental Act of Title 70, chapter 33, MCA;

(o) violating the Residential Lead-Based Paint Disclosure Program of Title X, section 1018 of the United States Code;

(p) when entering into a management agreement failing to make a prompt effort to verify that the principal entering the agreement is the owner or is authorized by the owner to enter such agreement;

(q) failing to disclose to all customers and clients their contractual relationship;

(r) openly advertising property belonging to others, whether by means of printed material, radio, television, or display, or by other means, without a signed property management agreement from the owner of the property. The agreement must be valid as of the date of advertisement. Internet advertising is subject to the provisions of ARM 24.210.430;

(s) failing to include the name of the property management company, or the term "property manager" in any real estate advertising, including property owned by the licensee. Internet advertising is subject to the provisions of ARM 24.210.430.

(t) failing to disclose the fact that the individual is a licensee when the licensee first seeks information from the owner, the owner's agent, or tenant about any property, whether for the licensee's own account or as agent for another.

(u) managing property owned by a separate person or entity without a written property management agreement in place, signed by the owner;

(v) failing to comply with all continuing education completion and reporting requirements as established by the board;

(w) accepting, giving, or charging an undisclosed commission, rebate, or profit on expenditures made for a principal;

(x) committing any act of forgery, fraud, misrepresentation, deception, misappropriation, conversion, theft, or any other like act;

(y) failing to respond to a request from the board;

(z) engaging in or conducting business as a property manager, or advertising as a property manager, or engaging in or conducting the business of a property manager at a time when the licensee's license has expired or is on inactive status; however, payments received by the seller of a property management business even if the seller is no longer a licensee is not considered engaging in or conducting business as a property manager; or

(aa) indicating on a renewal form that the licensee has completed all required continuing education as of the date of submission of the renewal form when the licensee has not completed the continuing education.

(4) The revocation or suspension or other disciplinary treatment of any other professional or occupational license or privilege held by the licensee in this state or another state, whether as an attorney, salesperson, broker, appraiser, or similar occupation or profession, shall be grounds for license discipline in this state, if the board, after appropriate notice and hearing, determines that the substantive grounds for that disciplinary treatment demonstrates the licensee's unworthiness or incompetency to act as a property manager.

(5) A licensed property manager is responsible for the actions of their employees who aid or assist the property manager in the performance of property management functions. At no time may an unlicensed employee perform an activity for which a license is required.

(6) A licensee is not required to either investigate or disclose whether a registered sexual or violent offender resides in proximity to any property with which the licensee manages, shows, negotiates for the rental, or otherwise is involved.

History: 37-1-131, 37-1-136, 37-1-319, 37-51-203, MCA; IMP, 37-1-131, 37-1-136, 37-1-137, 37-1-316, 37-1-319, 37-51-607, MCA; NEW, 1993 MAR p. 1909, Eff. 8/13/93; AMD, 1995 MAR p. 468, Eff. 3/31/95; AMD, 1995 MAR p. 2397, Eff. 11/10/95; AMD, 1998 MAR p. 3277, Eff. 12/18/98; AMD, 1999 MAR p. 405, Eff. 3/12/99; AMD, 2001 MAR p. 785, Eff. 5/11/01; TRANS, from Commerce, 2005 MAR p. 2455; AMD, 2007 MAR p. 1329, Eff. 9/7/07; AMD, 2010 MAR p. 532, Eff. 2/26/10; AMD, 2012 MAR p. 1776, Eff. 9/7/12; AMD, 2018 MAR p. 1163, Eff. 6/23/18; AMD, 2021 MAR p. 1778, Eff. 12/11/21; AMD, 2022 MAR p. 238, Eff. 2/12/22.