SB747 HFA Lucas 4-8 #1
Morgan 3345
Delegate Lucas moved to amend the bill by striking everything after the enacting clause and inserting in lieu thereof the following language:
(a) Every person holding a broker’s license under the provisions of this article shall:
(1) Have and maintain a definite place of business within this state, which shall be a room or rooms used for the transaction of real estate business and any allied business. The definite place of business shall be designated in the license certificate issued by the commission and the broker may not transact business at any other location within this state, unless such other location is properly licensed by the commission as a branch office.: Provided, That a nonresident broker who maintains a definite place of business in his or her jurisdiction of residence may not be required to maintain an office in this state A broker who is a nonresident of this state may not be required to maintain an active place of business in this state if the nonresident broker’s state of original licensure is party to an active reciprocity agreement with the commission that does not require West Virginia licensees holding licenses in that state to maintain an office in that state;
(2) Conspicuously display his or her branch office license in each branch office;
(3) Make application to the commission before changing the address of any office or within 10 days after any change;
(4) Maintain in his or her custody and control the license of each associate broker and salesperson affiliated with him or her; and
(5) Promptly return the license of any associate broker or salesperson whose affiliation with the broker is terminated.
(b) Every person holding an associate broker’s or salesperson’s license under the provisions of this article shall:
(1) Conduct real estate brokerage activities only under the direct supervision and control of his or her affiliated broker, which shall be designated in the license certificate; and
(2) Promptly make application to the commission of any change of employing broker: Provided, That it shall be unlawful to perform any act contained in this article, either directly or indirectly, after affiliation has been terminated until the associate broker or salesperson has made application to the commission for a change of affiliated broker and the application is approved.
(c) The commission shall issue a license certificate which shall:
(1) Be in such form and size as shall be prescribed by the commission;
(2) Display the seal of the commission and shall contain such other information as the commission may prescribe: Provided, That a salesperson’s and an associate broker’s license shall show the name of the broker by whom he or she is affiliated;
(3) If an active licensee, be mailed or delivered to the broker’s main office address;
(4) If an inactive licensee, be held in the commission office; and
(5) Be valid for a period that coincides with the fiscal year beginning on July 1 and ending on June 30.
Every broker, associate broker, and salesperson owes certain inherent duties to the consumer which are required by virtue of the commission granting a license under this article. The duties include, but are not limited to:
(a)(1) At the time of securing any contract whereby the broker is obligated to represent a principal to a real estate transaction, every licensee shall supply a true legible copy of the contract to each person signing the contract.
(2) Prior to engaging in broker services, a licensee shall have the notice of agency and the consumer guide to agency, as promulgated by the West Virginia Real Estate Commission, signed. A licensee shall enter into the written notice with a prospective client prior to listing or showing property.
(b)(3) Any contract in which a broker is obligated to represent a principal to a real estate transaction shall contain a definite expiration date, and no a provision may not be included in any contract whereby the principal is required to notify the broker of his or her intention to cancel the contract after the definite expiration date.
(c) No(4) A provision may not be inserted in any contract for representation that would obligate the person signing the contract to pay a fee, commission, or other valuable consideration to the broker, after the contract's expiration date, if the person subsequently enters into a contract for representation with a different broker.
(d)(5) Every licensee shall disclose in writing, on the notice of agency relationship form, promulgated by the commission whether the licensee represents the seller, the buyer, the seller and the buyer, the landlord, the tenant, or the landlord and the tenant. The disclosure shall be made prior to any person signing any contract for representation by a licensee or a contract for the sale or purchase of real estate.
(e)(6) Every licensee shall promptly deliver to his or her principal, every written offer received.
(f)(7) Every licensee shall make certain that all the terms and conditions of a real estate transaction are contained in any contract prepared by the licensee.
(g)(8) At the time of securing the signature of any party to a contract, the licensee shall deliver a true copy of the contract to the person whose signature was obtained.
(h)(9) Upon the final acceptance or ratification of any contract, the licensee shall promptly deliver a true copy to each party that has signed the contract.
ARTICLE 40A. THE WEST VIRGINIA ABOLISHMENT OF WHOLESALING ACT.
§30-40A-1. Definitions.
As used in this article, the following words and phrases are hereby defined:
(1) "Commission" means the West Virginia Real Estate Commission as established in §30-40-6 of this code;
(2) "Residential real property" means real property used for residential purposes with fewer than four dwelling units;
(3) "Wholesaling" means the practice of entering into a contract for the purchase of real property with the intent to assign, sell, or otherwise transfer the contractual rights to a third party for a fee or other consideration, without the wholesaler taking legal title to the property. This practice does not include transactions where the purchaser takes legal title before transferring the property to another party; and
(4) "Wholesaler" means a person who engages in the act of wholesaling.
§30-40A-2. Abolition and prohibition on wholesaling.
The practice and regulation of wholesaling is hereby abolished and the practice of wholesaling is prohibited.
§30-40A-3. Cancellation of contract for sale by a seller if any person engages in
Wholesaling; remedy.
Notwithstanding any other provision contained within a contract for sale of residential real property, if any person engages in wholesaling, the seller may cancel the contract for sale at any time before the close of escrow without penalty and may retain any earnest money paid by the wholesaler.
§30-40A-4. Cancellation of contract for sale by a buyer if any person engages in
Wholesaling; remedy.
(a) Notwithstanding any other provision contained in the contract for sale, if any person engages in wholesaling, the buyer may cancel the contract for sale at any time before the close of escrow without penalty and shall be refunded all earnest money paid by the buyer.
(b) Notwithstanding any other provision contained in the contract for sale, if any person engages in wholesaling, the buyer may bring a civil action against such person and seek to recover, in addition to actual damages, a civil penalty of 100 percent of the difference between the following:
(1) The sales price in the contract between the wholesaler and the buyer; and
(2) The fee or other consideration received by the wholesaler for assigning, selling, or otherwise transferring such contractual rights to a third-party.
Adopted
Rejected