Rhode Island Real Estate License Law
Rhode Island real estate practice is governed by the Real Estate Brokers and Salespersons Act (R.I. General Laws Chapter 5-20.5) and administered by the Rhode Island Real Estate Commission within the Department of Business Regulation (DBR). This chapter covers licensing authority, the broker relationship, and how salespersons are supervised and disciplined.
The Commission and the DBR
The Rhode Island Real Estate Commission, within the Department of Business Regulation (DBR), licenses and regulates real estate brokers and salespersons under Chapter 5-20.5 of the General Laws. A license is required to sell, list, buy, exchange, rent, or negotiate real estate for others for compensation unless a specific exemption applies. The Commission and Department investigate complaints and may deny, suspend, or revoke a license and impose penalties for violations.
Salespersons Work Under a Broker
A Rhode Island salesperson may perform brokerage activity only under the supervision of a licensed real estate broker and may not operate independently. The salesperson's license is associated with one sponsoring broker at a time, and the broker is responsible for the salesperson's real estate conduct. A salesperson may be paid a commission only by the sponsoring broker, not directly by a buyer, seller, or another broker.
Grounds for Discipline
The Commission may discipline a licensee for acts such as misrepresentation or false promises, commingling or converting client funds, dishonest or fraudulent dealing, failing to make required disclosures, and violating the license law or Commission regulations. Penalties can include fines, license suspension, or revocation. Serious violations, including mishandling escrow money, are treated as major breaches of the license law.