COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 54
(By Senator Wooton)
____________
[Originating in the Committee on Government Organization;
reported March 30, 1993.]
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A BILL to amend and reenact sections one, two, three, four, five,
six, seven, seven-a, eight, nine, ten, eleven, twelve,
thirteen, fourteen, fifteen, seventeen, eighteen and twenty-
three, article twelve, chapter forty-seven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, relating to the real estate brokers licensing.
Be it enacted by the Legislature of West Virginia:
That sections one, two, three, four, five, six, seven,
seven-a, eight, nine, ten, eleven, twelve, thirteen, fourteen,
fifteen, seventeen, eighteen and twenty-three, article twelve,
chapter forty-seven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended and reenacted to
read as follows:
ARTICLE 12. REAL ESTATE COMMISSION, BROKERS AND SALESPERSONS.
§47-12-1. Title of article; broker's or salesperson's license
required.
This article shall be known, and may be cited, as the realestate brokers license act of one thousand nine hundred fifty-
nine, and from and after the effective date of this article it
shall be unlawful for any person, partnership, association or
corporation to engage in or carry on, directly or indirectly, or
to advertise or hold himself, herself, itself or themselves out
as engaging in or carrying on the business or act in the capacity
of a real estate broker or a real estate salesperson within this
state without first obtaining a license as a real estate broker
or real estate salesperson as provided for in this article.
§47-12-2. Definitions and exceptions.
(a) The term "real estate broker" within the meaning of this
article includes all persons, partnerships, associations and
corporations, foreign and domestic, who for a fee, commission or
other valuable consideration or who with the intention or
expectation of receiving or collecting the same, lists, sells,
purchases, exchanges, rents, manages, leases or auctions any real
estate or the improvements thereon, including options, or who
negotiates or attempts to negotiate any such activity; or who
advertises or holds himself, herself, itself or themselves out as
engaged in such activities; or who directs or assists in the
procuring of a purchaser or prospect calculated or intended to
result in a real estate transaction. The term "real estate
broker" shall also include any person, partnership, association
or corporation employed by or on behalf of the owner or owners of
lots, or other parcels of real estate, at a stated salary or upon
a fee, commission or otherwise to sell such real estate, or any
parts thereof, in lots or other parcels, and who shall sell,
manage, exchange, lease, offer, attempt or agree to negotiate thesale, exchange or lease of any such lot or parcel of real estate.
(b) The term "real estate" as used in this article includes
leaseholds as well as any and every interest or estate in land,
whether corporeal or incorporeal, freehold or nonfreehold, and
whether said property is situated in this state or elsewhere.
(c) The term "associate broker" means any person who for
compensation or other valuable consideration is employed by a
broker to perform all the functions authorized by a broker's
license only for and on behalf of such employing broker
including, but not limited to, authority to supervise other
salespersons employed by a broker and manage an office on behalf
of a broker.
(d) The term "real estate salesperson" means and includes
any person employed or engaged by or on behalf of a licensed real
estate broker to do or deal in any activity as included in this
section, for compensation or otherwise.
(e) One act in consideration of or with the expectation or
intention of or upon the promise of receiving compensation by
fee, commission or otherwise, in the performance of any act or
activity contained in this section, constitutes such persons,
partnerships, association or corporation, a real estate broker
and make him or her, them or it subject to the provisions and
requirements of this article.
(f) The term "real estate broker" or "real estate
salesperson" shall not include any person, partnership,
association or corporation, who, as a bona fide owner or lessor,
performs any aforesaid act:
(1) With reference to property owned or leased by him or herto the regular employees thereof, where such acts are performed
in the regular course of or as an incident to the management of,
such property and the investment therein;
(2) Nor shall this article be construed to include
attorneys-at-law, except that attorneys-at-law shall be required
to submit to the written examination required under section seven
of this article in order to qualify for a broker's license:
Provided, That an attorney-at-law who is licensed as a real
estate broker prior to the effective date of this section is
exempt from the written examination required under section seven
of this article;
(3) Nor any person holding in good faith a duly executed
power of attorney from the owner authorizing the final
consummation and execution for the sale, purchase, lease or
exchange of real estate;
(4) Nor to the acts of any person while acting as a
receiver, trustee, administrator, executor, guardian, or under
the order of any court or while acting under authority of a deed
of trust or will;
(5) Nor shall this article apply to public officers while
performing their duties as such;
(6) Nor shall this article apply to the acquisition or
disposition of coal, oil or gas leasehold or coal, oil or gas
interests.
§47-12-3. Commission created; powers generally; membership;
appointment and removal of members; qualifications; terms;
organization; salaries and expenses; executive director and
assistants; seal; admissibility of and inspection of
records; termination of commission.
There shall be a commission known as the "West Virginia Real
Estate Commission", which commission shall be a corporation and
as such may sue and be sued, may contract and be contracted with
and shall have a common seal. The commission shall consist of
three persons to be appointed by the governor by and with the
advice and consent of the Senate. Two of such appointees each
shall have been a resident and a citizen of this state for at
least six years prior to his or her appointment and whose
vocation for at least ten years shall have been that of a real
estate broker or real estate salesperson and the third shall be
a representative of the public generally. Members in office on
the date this section becomes effective shall continue in office
until their respective terms expire. The term of the members of
said commission shall be for four years and until their
successors are appointed and qualify. No more than two members
of such commission shall belong to the same political party. No
member shall be a candidate for or hold any other public office
or be a member of any political committee while acting as such
commissioner. In case any commissioner be a candidate for or
hold any other public office or be a member of any political
committee, his or her office as such commissioner shall ipso
facto be vacated. Members to fill vacancies shall be appointed
by the governor for the unexpired term. No member may be removed
from office by the governor except for official misconduct,
incompetency, neglect of duty, gross immorality or other good
cause shown and then only in the manner prescribed by law for the
removal by the governor of state elective officers. The governorshall designate one member of the commission as the chairman
thereof and the members shall choose one of the members thereof
as secretary. Two members of the commission shall constitute a
quorum for the conduct of official business.
(a) The commission shall do all things necessary and
convenient for carrying into effect the provisions of this
article and may from time to time promulgate reasonable, fair and
impartial rules and regulations in accordance with the provisions
of article three, chapter twenty-nine-a of this code. Each
member of the commission shall receive as full compensation for
his or her services the sum of one hundred dollars per day for
each full day actually spent on the work of the commission and
his or her actual and necessary expenses incurred in the
performance of duties pertaining to his or her office.
(b) The commission shall employ an executive director and
such clerks, investigators and assistants as it shall deem
necessary to discharge the duties imposed by the provisions of
this article and to effect its purposes, and the commission shall
determine the duties and fix the compensation of such executive
director, clerks, investigators and assistants, subject to the
general laws of the state.
(c) The commission shall adopt a seal by which it shall
authenticate its proceedings. Copies of all records and papers
in the office of the commission, duly certified and authenticated
by the seal of said commission, shall be received in evidence in
all courts equally and with like effect as the original. All
records kept in the office of the commission under authority of
this article shall be open to public inspection under reasonablerules and regulations as shall be prescribed by the commission.
(d) After having conducted a performance and fiscal audit
through its joint committee on government operations, pursuant to
section nine, article ten, chapter four of this code, the
Legislature hereby finds and declares that the West Virginia real
estate commission should be continued and reestablished.
Accordingly, notwithstanding the provisions of section four of
said article, the West Virginia real estate commission shall
continue to exist until the first day of July, one thousand nine
hundred ninety-four.
§47-12-4. Qualifications for licenses.
(1) Licenses shall be granted only to persons who are
trustworthy, of good character and competent to transact the
business of a real estate broker or real estate salesperson in
such manner as to safeguard the interests of the public. Every
applicant for a license as a real estate broker shall be of the
age of eighteen years or over, a citizen of the United States and
shall have served a bona fide apprenticeship as a licensed real
estate salesperson for two years or shall produce to the real
estate commission satisfactory evidence of real estate
experience. No broker's license shall be issued to a
partnership, association or corporation unless each member or
officer thereof who will actively engage in the real estate
business be licensed as a real estate salesperson or associate
broker, when and after said broker shall have been granted a
broker's license.
(2) A broker's or salesperson's license may be issued to any
person who is either a high school graduate or the holder of acertificate of high school equivalency.
(3) Applicants for a broker's license shall show evidence
satisfactory to the commission that they have completed at least
one hundred eighty clock-hours (twelve credit hours) of formal
instruction in a real estate course or courses approved by the
commission. Such courses must cover real estate principles, real
estate law, real estate appraising and real estate finance and
such other topics approved by the commission. Any applicant for
a broker's license who is licensed as a salesperson at the time
a broker's application is submitted to the commission, shall only
be required to show evidence satisfactory to the commission that
they have completed the additional ninety clock-hours (six credit
hours) of formal instruction in a real estate course or courses
approved by the commission. The applicant shall satisfactorily
pass an examination or examinations covering the material taught
in each such course.
(4) Applicants for a salesperson's license shall show
evidence satisfactory to the commission that they have completed
at least ninety clock-hours (six credit hours) of formal
instruction in a real estate course or courses approved by the
commission. Such courses must cover real estate principles, real
estate law, real estate appraising and real estate finance, and
such other topics approved by the commission. The applicant
shall satisfactorily pass an examination covering the material
taught in each such course.
(5) Effective the first day of July, one thousand nine
hundred ninety-four, any applicant for either a broker's or
salesperson's license must have completed the required educationcourse or courses during the five year period preceding the date
of application.
(6) Subsections (3) and (4) of this section do not apply to
any applicant who holds a valid broker's or salesperson's license
issued prior to the first day of July, one thousand nine hundred
eighty. Each such applicant shall complete at least ninety
clock-hours (six credit hours) of instruction as specified in
subsection (3) of this section if he or she has not completed the
broker's examination required under section seven of this article
by the first day of July, one thousand nine hundred eighty-two.
(7) The commission, pursuant to this section, shall publish
a list of real estate courses which are approved and shall update
such list yearly. Additionally, the commission shall, on request
of any person, evaluate a specific course or courses which are
not on the approved list and approve or disapprove such course or
courses promptly and in writing.
§47-12-5. Applications for licenses.
Every applicant for a real estate broker's license shall
apply therefor in writing upon blanks prepared by the commission
which shall contain such data and information as the commission
shall require.
(a) Such application for broker's license shall be
accompanied by the recommendation of at least two citizens who
are property owners at the time of signing said application and
have been property owners for at least twelve months preceding
such application, who have known the applicant for two years and
are not related to the applicant, certifying that the applicant
bears a good reputation for honesty and trustworthiness, andrecommending that a license be granted to the applicant.
(b) Every applicant for a salesperson's license shall apply
therefor in writing upon blanks prepared by the commission which
shall contain such data and information as the commission may
require. The application shall be accompanied by a sworn
statement by the broker in whose employ the applicant desires to
enter, certifying that, in his or her opinion, the applicant is
honest and trustworthy, and recommending the license be granted
to the applicant.
§47-12-6. Licensing nonresidents; reciprocity; consent to
service of process, etc.; manner of service; judgment by
default; bond.
A nonresident of this state may become a real estate broker
by conforming to all the provisions of this article, except that
such nonresident broker regularly engaged in the real estate
business as a vocation and who maintains a definite place of
business and is licensed in some other state, which offers the
same privileges to the licensed brokers of this state, shall not
be required to maintain a place of business in this state. The
commission shall recognize the license issued to a real estate
broker or salesperson by another state as satisfactorily
qualifying him or her for license as a broker or salesperson:
Provided, That said nonresident broker or salesperson has
qualified for license in his or her own state by written
examination and also that said other state permits license to be
issued to licensed brokers or salespersons in this state without
examination. Every nonresident applicant shall file an
irrevocable written consent that suits and actions may becommenced against such applicant in the proper court of any
county of the state in which a cause of action growing out of a
real estate transaction may arise, in which the plaintiff may
reside, by the service of any process or pleading authorized by
the laws of this state, on any member of the commission, or the
executive director, said consent stipulating and agreeing that
such service of such process or pleading shall be taken and held
in all courts to be as valid and binding as if due service had
been made upon said applicant in this state. Said consent shall
be duly acknowledged and if made by a corporation shall be
authenticated by the seal of such corporation. Any service of
process or pleading shall be by duplicate copies, one of which
shall be filed in the office of the commission and the other
immediately forwarded by registered mail to the last-known main
office of the applicant against whom said process or pleading is
directed; and no default in any such proceeding or action shall
be taken except upon certification of the commission or the
executive director that a copy of said process or pleading was
mailed to the defendant as herein required; and no judgment by
default shall be taken in any such action or proceeding until
after twenty days from the date of mailing of such process or
pleading to the nonresident defendant.
(a) Before a license as a real estate broker shall be issued
to any person who does not have his or her principal place of
business in the state of West Virginia, he or she shall file with
the commission a bond in the penalty of two thousand dollars, in
form and with security to be approved by the commission and
conditioned so as to be for the benefit of and to indemnify anyperson in the state who may have any cause of action against the
principal.
(b) Before a license as a real estate salesperson shall be
issued to any person who is not a bona fide resident of this
state, whether he or she be an employee of a resident or a
nonresident real estate broker, such applicant shall file with
the commission a bond such as is herein required to be filed by
a nonresident broker.
§47-12-7. Written examinations required; exceptions;
requirements for reissuance of revoked license;
reexamination after failure; examination where applicant a
partnership, etc.; issuance of license.
In addition to proof of honesty, trustworthiness, good
character and good reputation of any applicant for a license, the
applicant shall submit to a written examination to be conducted
by the commission which shall include reading, writing, spelling,
elementary arithmetic, a general knowledge of the statutes of
this state relating to real property, deeds, mortgages,
agreements of sale, agency contract, leases, ethics, appraisals
and the provisions of this article: Provided, That any person
who has been actively engaged in the real estate business as a
real estate broker or real estate salesperson within the year
preceding the effective date of this article and is thus engaged
in this state at the time this article goes into effect, may
secure a license as a real estate broker or a salesperson without
an examination: Provided, however, That such person shall make
application to the commission for registration within ninety days
after the effective date of this article. The examination for abroker's license shall differ from the examination for a
salesperson's license in that it shall be of a more exacting
nature and require higher standards of knowledge of real estate.
The commission shall conduct examinations at such times and
places as it shall determine.
(a) In event the license of any real estate broker or
salesperson shall be revoked by the commission, subsequent to the
enactment of this article, no new license shall be issued to such
person unless he or she complies with the provisions of this
article.
(b) No person shall be permitted or authorized to act as a
real estate broker until he or she has qualified by examination,
except as hereinbefore provided. Any individual who fails to
pass the examination upon two occasions shall be ineligible for
a similar examination until after the expiration of three months
from the time such individual took the last examination and then
only upon making application as in the first instance.
(c) If the applicant is a partnership, association or
corporation said examination shall be submitted to on behalf of
said partnership, association or corporation by the member or
officer thereof who is designated in the application as the
person to receive a license by virtue of the issuing of a license
to the partnership, association or corporation.
(d) Upon satisfactorily passing such examination and upon
complying with all other provisions of law and conditions of this
article a license shall thereupon be issued to the successful
applicant and upon receiving such license is authorized to
conduct the business of a real estate broker or real estatesalesperson in this state. A person who has qualified for a real
estate license as provided above is considered to be a
professional in his or her trade.
§47-12-7a. Continuing education; license renewal.
In addition to other provisions of this article, beginning
the first day of July, one thousand nine hundred ninety, and
every year thereafter, every real estate broker and salesperson
shall complete seven actual hours of continuing education, with
each hour equaling fifty minutes of instructions. The commission
shall establish the continuing education program by rules and
shall approve all courses, seminars and lectures: Provided, That
real estate related continuing legal education courses approved
by the West Virginia state bar shall be approved by the
commission. If approved in advance by the real estate
commission, correspondence courses and audio or video tapes may
be used to satisfy the continuing education requirement.
Upon application for renewal of a real estate license in
each year following one thousand nine hundred ninety, such real
estate broker or salesperson must furnish satisfactory evidence,
as established by the commission, that he or she has completed
the required number of continuing education hours: Provided,
That a real estate broker or salesperson holding a license on the
first day of July, one thousand nine hundred sixty-nine, and
continuously thereafter, shall be exempt from continuing
education requirements. When a real estate broker or salesperson
in an inactive status reverts to an active status, he or she will
obtain seven hours continuing education each year without being
required to complete additional hours of education resulting fromhis or her inactive status.
§47-12-8. Place of business; display of certificates of
registration; notice of change of address; branch offices;
change of employer or employment by real estate
salespersons.
Every person, partnership, association or corporation
licensed as a real estate broker shall be required to have and
maintain a definite place of business within this state, which
shall be a room or rooms used for the transaction of the real
estate business, or such business and any allied business. The
certificate of registration as broker and the certificate of each
real estate salesperson employed by such broker shall be
prominently displayed in said office. The said place of business
shall be designated in the license and no license issued under
the authority of this article shall authorize the licensee to
transact business at any other address. In case of removal from
the designated address, the licensee shall make application to
the commission before said removal or within ten days after said
removal, designating the new location of such office, whereupon
the commission shall forthwith issue a new license for the new
location for the unexpired period, if said new location is
satisfactory, upon return to the commission of the license
previously issued.
(a) Each and every branch office owned or operated by a duly
licensed broker shall be supervised and operated by a licensed
broker or licensed salesperson.
(b) All licenses issued to a real estate salesperson shall
designate the employer of such salesperson. Prompt notice inwriting, within ten days, shall be given to the commission by any
real estate salesperson of a change of employer, and of the
licensed broker into whose employ the salesperson is about to
enter, and a new license shall thereupon be issued by the
commission to such salesperson for the unexpired term of the
original license, upon return to the commission of the license
previously issued. The change of employer or employment by any
licensed real estate salesperson, without notice to the
commission, as aforesaid, shall automatically cancel the license
to him or her theretofore issued. Upon termination of
salesperson's employment, the broker employer shall forthwith
return the salesperson's license to the commission for
cancellation. It shall be unlawful for any real estate
salesperson to perform any of the acts contemplated by this
article either directly or indirectly after his or her employment
has been terminated and license as a salesperson has been
returned for cancellation until said license has been reissued by
the commission.
§47-12-9. License fees, annual registration; fee for additional
offices, charge for change of location and for duplicate or
transfer of license.
To pay for the maintenance and operation of the office of
the commission and the enforcement of this article, the
commission shall charge the following fees:
(a) Examination fee -- twenty-five dollars, with no
additional fee for second examination.
(b) Investigation fee -- ten dollars.
(c) Broker's license -- eighty dollars.
(d) Salesperson's license -- forty dollars.
(e) Broker's renewal fee -- eighty dollars, payable by the
thirtieth day of June of each year.
(f) Salesperson's renewal fee -- forty dollars, payable by
the thirtieth day of June of each year.
(g) Branch office fee -- eighty dollars.
(h) Renewal of branch office license -- eighty dollars.
(i) Transfer of salesperson's license -- ten dollars.
(j) Duplicate license or certification -- ten dollars.
(k) Change of name -- ten dollars.
(l) Change of office -- ten dollars.
Willful failure to pay any of the fees is just cause for
revocation of or refusal to issue or renew a license.
§47-12-10. Disposition of fees; real estate license fund;
expenditures by commission.
All fees charged and collected under this article shall be
paid by the executive director at least once a month into the
treasury of the state to credit of a fund to be known as the
"real estate license fund", which is hereby created. All moneys
which shall be paid into the state treasury and credited to the
"real estate license fund" are hereby appropriated to the use of
the commission in carrying out the provisions of this article,
including the payment of salaries and expenses and the printing
of an annual directory of licensees and for educational purposes.
The amount paid to or expended by the commission shall not
exceed the revenues derived under the provisions of this article
as hereinbefore provided.
§47-12-11. Procedure and grounds for refusal, suspension or
revocation of license.
The commission may upon its own motion and shall, upon the
verified complaint in writing of any person setting forth a cause
of action under this section, ascertain the facts and if
warranted hold a hearing for the suspension or revocation of a
license. The commission shall have full power to refuse a
license for reasonable cause or to revoke or suspend a license if
the licensee:
(1) Obtains, renews or attempts to obtain or renew a license
through the submission of any application or other writing that
contains false or fraudulent information;
(2) Makes any substantial misrepresentation;
(3) Makes any false promises or representations of character
likely to influence, persuade or induce a person involved in a
real estate transaction;
(4) Pursues a continued or flagrant course of
misrepresentation or makes false promises or representations
through agents or salespersons or any medium of advertising or
otherwise;
(5) Uses misleading or false advertising or uses any trade
name or insignia of membership in any real estate organization,
in which the licensee is not a member;
(6) Acts for more than one party in a transaction without
the knowledge of all parties for whom he or she acts;
(7) Fails, within a reasonable time, to account for or to
remit any moneys coming into his or her possession belonging to
others, or commingles moneys belonging to others with his or her
own funds;
(8) Displays a "for sale" or "for rent" sign on any property
without an agency therefor or without the owner's consent;
(9) Fails to disclose in writing to all parties to a real
estate transaction, on the form promulgated by the commission,
whether the licensee is representing the seller, the buyer or
both;
(10) Fails to voluntarily furnish copies of a notice of
agency disclosure, and all listing agreements, sales contracts,
and lease agreements to all parties executing the same;
(11) Pays or receives any rebate, profit, compensation or
commission as a result of a real estate transaction from any
person other than his or her principal;
(12) Induces any party to a contract, sale or lease to enter
into another contract, in lieu thereof, for the personal gain of
the licensee;
(13) Accepts a commission or other valuable consideration as
a real estate salesperson for the performance of any of the acts
specified in this article, from any person, other than his or her
employer, who must be a licensed real estate broker;
(14) Pays a commission or other valuable consideration to
any person for acts or services performed either in violation of
this article or the real estate licensure laws of any other
state;
(15) Engages in the unlawful or unauthorized practice of law
as defined by the supreme court of appeals of West Virginia;
(16) Procures an attorney for any customer or solicits legal
business for any attorney-at-law;
(17) Engages in any act or conduct which constitutes ordemonstrates bad faith, incompetency or untrustworthiness, or
dishonest, fraudulent or improper dealing;
(18) Has been convicted in a court of competent jurisdiction
in this or in any other state of forgery, embezzlement, obtaining
money under false pretense, extortion, conspiracy to defraud or
of any other like offense; or
(19) Has been convicted in a court of competent jurisdiction
in this or any other state of a felony.
(b) As used in this section:
(1) The words "convicted in a court of competent
jurisdiction" mean a plea of guilty or nolo contendere entered by
a person or a verdict of guilt returned against a person at the
conclusion of a trial;
(2) A certified copy of a guilty verdict or plea entered in
such court is sufficient evidence to demonstrate a person has
been convicted in a court of competent jurisdiction.
§47-12-12. Notice of hearing on complaint; conduct of hearing.
Upon complaint initiated by the commission or filed with it,
the licensee shall be given ten days' written notice of hearing
upon the charges filed, together with a copy of the complaint.
The applicant or licensee shall have an opportunity to be heard
thereon in person, to offer testimony in his or her behalf and to
examine the witnesses, appearing in connection with the
complaint. The hearing shall be conducted in accordance with the
provisions of article five, chapter twenty-nine-a of this code,
and all rights, procedures and duties contained therein shall be
observed.
§47-12-13. Appeals.
Any applicant or licensee, or person aggrieved, shall have
the right of appeal from any adverse ruling, order, or decision
of the commission to the circuit court of the county where the
hearing was held within thirty days from the service of notice of
the action of the commission upon the parties in interest.
(a) Notice of appeal shall be filed in the office of the
clerk of the circuit court wherein the hearing was held, who
shall issue a writ of certiorari directed to the commission,
commanding it, within ten days after service thereof, to certify
to such court, its entire record in the matter in which the
appeal has been taken. The appeal shall thereupon be heard, in
due course, by said court, which shall review the record and make
its determination of the cause between the parties.
(b) In the event an appeal is taken by a licensee or
applicant, such an appeal shall not stay enforcement of the
commission's order or decision or act as a supersedeas thereof
unless otherwise ordered by the circuit court.
(c) Any person taking an appeal shall post a satisfactory
bond in the amount of two hundred dollars for the payment of any
costs which may be adjudged against him or her.
(d) Appeal may be taken from the circuit court to the
supreme court of appeals by manner prescribed by law.
§47-12-14. Real estate courses for licensees; assisting studies,
surveys, etc.
(a) The commission is authorized to conduct or hold or to
assist in conducting or holding real estate courses or
institutes. The commission may incur and pay the necessary
expenses in connection therewith. Such courses or institutes areopen to any licensee.
(b) The commission is authorized to assist libraries, real
estate institutes and foundations with financial aid or
otherwise, in providing texts, sponsoring studies, surveys and
programs for the benefit of real estate and the elevation of the
real estate business.
(c) The commission may provide correspondence courses for
applicants for brokers' and salespersons' licenses sufficient to
meet the educational requirements contained in subsections (3)
and (4), section four of this article as an alternative means of
meeting said educational requirements.
§47-12-15. Executive director's bond.
The executive director appointed by the commission shall
give bond in such sum with surety as the commission may direct
and approve.
§47-12-17. Actions for commissions; revocation of broker's
license as suspending salesperson's licenses; listing
agreements; broker or salesperson to disclose agency status;
purchase agreements.
No person, partnership, association or corporation shall
bring or maintain an action in any court of this state for the
recovery of a commission, a fee or compensation for any act done
or service rendered, the doing or rendering of which is
prohibited under the provisions of this article to other than
licensed real estate brokers, unless such person was duly
licensed hereunder as a real estate broker at the time of the
doing of such act or the rendering of such service.
(a) No real estate salesperson shall have the right toinstitute suit in his or her own name for the recovery of a fee,
commission or compensation for the services as a real estate
salesperson, but any such action shall be instituted and brought
by the broker employing such salesperson: Provided, That a real
estate salesperson shall have the right to institute suit in his
or her own name for the recovery of a fee, commission or
compensation for services as a real estate salesperson due him or
her from the broker by whom he or she is employed.
(b) The revocation of a broker's license shall automatically
suspend every salesperson's license granted to any person by
virtue of his or her employment by the broker whose license has
been revoked, pending a change of employer and the issuance of a
new license. Such new license shall be issued without charge if
granted during the same year in which the original license was
granted.
(c) A broker or salesperson who obtains a listing shall, at
the time of securing such listing, give the person or persons
signing such listing a true, legible copy thereof. Every listing
agreement, exclusive or nonexclusive, shall have set forth in its
terms a definite expiration date; it shall contain no provision
requiring the party signing such listing to notify the broker of
his or her intention to cancel such listing after such definite
expiration date: Provided, That an exclusive listing agreement
may provide that upon the expiration of the exclusive feature the
listing shall continue to a definite expiration date as a
nonexclusive listing only. No provision shall be inserted in any
listing agreement which would obligate the person, partnership,
association or corporation signing such listing to pay acommission or other valuable consideration to the broker after
such expiration date if the property is then listed by a
different broker: Provided, however, That if there is a currently
enforceable offer to purchase pending on the listed property at
the time of the listing's expiration, the first broker may still
be entitled to a commission or other valuable consideration.
(d) A broker or salesperson shall promptly, or at least
prior to any purchaser signing a written offer to purchase,
disclose in writing to all parties to a real estate transaction,
on a form promulgated by the commission, whether the broker or
salesperson represents the seller, the buyer, or both.
(e) A broker or salesperson shall promptly tender to the
seller every written offer to purchase obtained on the property
involved and, upon obtaining a proper acceptance of the offer to
purchase, shall promptly deliver true executed copies of same,
signed by the seller and purchaser, to both purchaser and seller;
all brokers and salespersons shall make certain that all of the
terms and conditions of the real estate transaction are included
in such offer to purchase.
§47-12-18. Trust fund accounts; records.
Every person, partnership or corporation holding a broker's
license under provisions of the real estate license law who does
not immediately place all funds entrusted to him or her by his or
her principal or others in a neutral escrow depository or in the
hands of principals, shall maintain a trust fund account with
some bank or recognized depository and place all such entrusted
funds therein upon receipt.
Said trust fund account shall designate him or her astrustee and all such trust fund accounts must provide for
withdrawal of the funds without previous notice.
Every broker required to maintain such trust fund account
shall keep records of all funds deposited therein, which records
shall clearly indicate the date and from whom he or she received
the money, date deposited, date of withdrawals and other
pertinent information concerning the transaction, and shall
clearly show for whose account the money is deposited and to whom
the money belongs.
All such records and funds shall be subject to inspection by
the commission.
§47-12-23. Duration of existing licenses.
All licenses issued either to a real estate broker or real
estate salesperson preceding the effective date of this article,
shall be valid until the thirtieth day of June, one thousand nine
hundred fifty-nine, in absence of any reason appearing to the
commission to cancel and withdraw any license issued by it, for
violation of any provisions of this article.
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(NOTE: The purpose of this bill is to make it unlawful for
any person, partnership, association or corporation to engage in
or carry on, directly or indirectly or act in the capacity of a
real estate broker without first obtaining a license as a real
estate broker or real estate salesperson.)