HOUSE BILL No. 4987


     June 21, 2001, Introduced by Reps. Bishop, Raczkowski, Adamini, Shackleton, Koetje, Anderson, Shulman, Ehardt, Spade and Lemmons and
referred to the Committee on Commerce.


        A bill to amend 1980 PA 299, entitled

   "Occupational code,"

   by amending section 2512 (MCL 339.2512), as amended by 2000

   PA 436.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2512.  A licensee who commits 1 or more of the follow-

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      ing is subject to the penalties set forth in article 6:

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           (a) Except in a case involving property management, acts for

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      more than 1 party in a transaction without the knowledge of the

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      parties.

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           (b) Fails to provide a written agency disclosure to a pro-

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      spective buyer or seller in a real estate transaction as defined

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      in section 2517.






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           (c) Represents or attempts to represent a real estate broker

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      other than the employer without the express knowledge and consent

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      of the employer.

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           (d) Fails to account for or to remit money coming into the

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      licensee's possession which belongs to others.

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           (e) Changes a business location without notification to the

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      department.

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           (f) In the case of a real estate broker, fails to return a

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      real estate salesperson's license within 5 days as provided in

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      section 2507.

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           (g) In the case of a licensee engaged in property manage-

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      ment, violates section 2512c(2), (5), or (6).

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           (h) Except as provided in section 2512b, shares or pays a

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      fee, commission, or other valuable consideration to a person not

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      licensed under this article including payment to any person pro-

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      viding the names of, or any other information regarding, a poten-

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      tial seller or purchaser of real estate but excluding payment for

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      the purchase of commercially prepared lists of names.  However, a

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      licensed real estate broker may pay a commission to a licensed

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      real estate broker of another state if the nonresident real

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      estate broker does not conduct in this state a negotiation for

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      which a commission is paid.

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           (i) Conducts or develops a market analysis not in compliance

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      with section 2601(a)(ii).

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           (j) Except in the case of property management accounts,

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      fails to deposit in  a  THE REAL ESTATE BROKER'S custodial trust





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      or escrow account money belonging to others coming into the hands

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      of the licensee in compliance with the following:

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           (i) A real estate broker shall retain a deposit or other

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      money  accepted by  MADE PAYABLE TO a person, partnership, corpo-

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      ration, or association holding a real estate broker's license

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      under this article pending consummation or termination of the

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      transaction involved and shall account for the full amount of the

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      money at the time of the consummation or termination of the

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      transaction.

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           (ii) A real estate salesperson shall pay over to the real

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      estate broker, upon receipt, a deposit or other money on a trans-

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      action in which the real estate salesperson is engaged on behalf

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      of the real estate broker.

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           (iii) A real estate broker shall not permit an advance pay-

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      ment of funds belonging to others to be deposited in the real

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      estate broker's business or personal account or to be commingled

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      with funds on deposit belonging to the real estate broker.

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           (iv) A real estate broker shall deposit, within 2 banking

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      days after the broker has received notice that an offer to pur-

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      chase is accepted by all parties, money belonging to others  in

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      MADE PAYABLE TO THE REAL ESTATE BROKER INTO a separate custodial

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      trust or escrow account maintained by the real estate broker with

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      a bank, savings and loan association, credit union, or recognized

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      depository until the transaction involved is consummated or ter-

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      minated, at which time the real estate broker shall account for

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      the full amount received.





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           (v) A real estate broker shall keep records of funds

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      deposited in  a  ITS custodial trust or escrow account, which

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      records shall indicate clearly the date and from whom the money

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      was received, the date deposited, the date of withdrawal, and

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      other pertinent information concerning the transaction, and shall

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      show clearly for whose account the money is deposited and to whom

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      the money belongs.  The records shall be subject to inspection by

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      the department.  A REAL ESTATE BROKER'S separate custodial trust

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      or escrow account shall designate the real estate broker as

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      trustee, and the custodial trust or escrow account shall provide

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      for withdrawal of funds without previous notice.  This article

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      and the rules promulgated pursuant to this article do not pro-

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      hibit the deposit of money accepted under this section in a non-

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      interest bearing account of a state or federally chartered sav-

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      ings and loan association or a state or federally chartered

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      credit union.

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           (vi) IF A PURCHASE AGREEMENT SIGNED BY A SELLER AND PUR-

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      CHASER PROVIDES THAT A DEPOSIT BE HELD BY AN ESCROWEE OTHER THAN

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      A REAL ESTATE BROKER, A LICENSEE IN POSSESSION OF SUCH A DEPOSIT

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      SHALL CAUSE THE DEPOSIT TO BE DELIVERED TO THE NAMED ESCROWEE.

















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