HB-4849, As Passed House, October 5, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4849

     A bill to amend 1980 PA 299, entitled

"Occupational code,"

by amending section 2512 (MCL 339.2512), as amended by 2002 PA 42,

and by adding section 2512d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

is subject to the penalties set forth in article 6:

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

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

parties.

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

prospective buyer or seller in a real estate transaction as defined

in section 2517.

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

other than the employer without the express knowledge and consent

of the employer.

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

licensee's possession which belongs to others.

     (e) Changes a business location without notification to the

department.

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

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

section 2507.

     (g) In the case of a licensee engaged in property management,

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

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

commission, or other valuable consideration to a person not

licensed under this article including payment to any person

providing the names of, or any other information regarding, a

potential seller or purchaser of real estate but excluding payment

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

a licensed real estate broker may pay a commission to a licensed

real estate broker of another state if the nonresident real estate

broker does not conduct in this state a negotiation for which a

commission is paid.

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

with section 2601(a)(ii).

     (j) Fails to provide the minimum services as specified in

section 2512d when providing services pursuant to an exclusive

service provision agreement. A licensee providing real estate

services pursuant to an agreement allowed under law that is not a

service provision agreement creating an exclusive agency

relationship is not considered in violation of this subdivision.

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

fails to deposit in the real estate broker's custodial trust or

escrow account money belonging to others coming into the hands of

the licensee in compliance with the following:

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

made payable to a person, partnership, corporation, or association

holding a real estate broker's license under this article pending

consummation or termination of the transaction involved and shall

account for the full amount of the money at the time of the

consummation or termination of the transaction.

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

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

transaction in which the real estate salesperson is engaged on

behalf of the real estate broker.

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

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

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

funds on deposit belonging to the real estate broker.

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

after the broker has received notice that an offer to purchase is

accepted by all parties, money belonging to others made payable to

the real estate broker into a separate custodial trust or escrow

account maintained by the real estate broker with a bank, savings

and loan association, credit union, or recognized depository until

the transaction involved is consummated or terminated, at which

time the real estate broker shall account for the full amount

received.

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

in its custodial trust or escrow account, which records shall

indicate clearly the date and from whom the money was received, the

date deposited, the date of withdrawal, and other pertinent

information concerning the transaction, and shall show clearly for

whose account the money is deposited and to whom the money belongs.

The records shall be subject to inspection by the department. A

real estate broker's separate custodial trust or escrow account

shall designate the real estate broker as trustee, and the

custodial trust or escrow account shall provide for withdrawal of

funds without previous notice. This article and the rules

promulgated pursuant to this article do not prohibit the deposit of

money accepted under this section in a noninterest bearing account

of a state or federally chartered savings and loan association or a

state or federally chartered credit union.

     (vi) If a purchase agreement signed by a seller and purchaser

provides that a deposit be held by an escrowee other than a real

estate broker, a licensee in possession of such a deposit shall

cause the deposit to be delivered to the named escrowee within 2

banking days after the licensee has received notice that an offer

to purchase is accepted by all parties.

     Sec. 2512d. (1) A real estate broker acting pursuant to a

service provision agreement creating an exclusive agency

relationship shall, at a minimum, provide the following services to

his or her client:

     (a) When the real estate broker is representing a seller or

lessor, the marketing of the client's property in the manner agreed

upon in the service provision agreement.

     (b) Acceptance of delivery and presentation of offers and

counteroffers to buy, sell, or lease the client's property or the

property the client seeks to purchase or lease.

     (c) Assistance in developing, communicating, negotiating, and

presenting offers, counteroffers, and related documents or notices

until a purchase or lease agreement is executed by all parties and

all contingencies are satisfied or waived.

     (d) After execution of a purchase agreement by all parties,

assistance as necessary to complete the transaction under the terms

specified in the purchase agreement.

     (e) Furnishing, or causing to be furnished, a complete and

detailed closing statement as required by R 339.22311 of the

Michigan administrative code.

     (2) As used in this section and section 2512, "service

provision agreement" means an agreement between the broker and

client that establishes an agency relationship through a listing

agreement or a buyer agency agreement.

     Enacting section 1.  This amendatory act does not take effect

unless House Bill No. 4850 of the 93rd Legislature is enacted into

law.