Custodial brokers. Appointment and duties

(a) If a real estate broker dies or is incapacitated, the executor of such broker's estate or any other person who is legally authorized to act on behalf of such broker in a financial transaction may apply to the department, in a form and manner prescribed by the department, for the appointment of a custodial broker. If the department approves an application for the appointment of a custodial broker, the department shall appoint a custodial broker for the deceased or incapacitated broker. Except as provided in subsection (b) of this section, each custodial broker who is appointed pursuant to this subsection shall serve for a term not to exceed one hundred eighty days. (b) The department may, in the department's discretion, extend a custodial broker's term beyond one hundred eighty days if the department receives a hardship application that is submitted to the department in a form and manner prescribed by the department. (c) Each custodial broker shall act to preserve the financial interests of the deceased or incapacitated real estate broker, or the estate of the deceased real estate broker, for whom such custodial broker is appointed. (d) No real estate broker who is appointed as a custodial broker to conclude the business of a deceased or incapacitated individual real estate broker shall negotiate the purchase, sale or lease of any real estate on behalf of such deceased or incapacitated broker unless: (1) The prospective purchaser, seller, lessor or lessee of such real estate entered into a preexisting buyer agreement, listing agreement or leasing agreement with such deceased or incapacitated broker; and (2) The prospective purchaser or lessor of such real estate has executed a contract or paid a deposit to a seller or lessee to reserve a right to purchase or lease such real estate from such seller or lessee. (e) No business entity shall engage in the real estate business while the designated broker for such business entity is deceased or incapacitated unless a custodial broker has been appointed for such business entity. (f) If a custodial broker is appointed to serve as a designated broker for a business entity, the business entity may engage in the real estate business to the same extent that such business entity would engage in such business if such designated broker was not a custodial broker. (g) No real estate salesperson or team member shall engage in the real estate business while the supervising licensee that is responsible for controlling and supervising such salesperson or team is deceased or incapacitated unless a custodial broker has been appointed for such supervising licensee.