May 31, 2005, Introduced by Reps. Schuitmaker, Green, Jones, McDowell, Wojno, Gaffney, Alma Smith, Lemmons, Jr., Sheltrown, Palsrok and Lemmons, III and referred to the Committee on Regulatory Reform.
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.
(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. 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.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4850(request no.
03309'05) of the 93rd Legislature is enacted into law.