Chapter 364
2011 -- H 5446 SUBSTITUTE A
Enacted 07/13/11
A N A C T
RELATING TO
BUSINESSES AND PROFESSIONS - AGENCY RELATIONSHIPS IN RESIDENTIAL REAL ESTATE
TRANSACTIONS
Introduced By: Representatives Petrarca, Ucci, Morrison, JP O`Neill, and Silva
Date Introduced: February 16, 2011
It is enacted by the
General Assembly as follows:
SECTION 1. Section 5-20.6-2 of the General Laws in Chapter
5-20.6 entitled "Agency
Relationships in
Residential Real Estate Transactions" is hereby amended to read as
follows:
5-20.6-2.
Definitions. -- As used in this chapter, the
following terms shall have the
following meanings:
(1) "Affiliated
licensee" means a licensed real estate salesperson or real estate broker
as
defined in section 5-20.5-1 associated with a particular
principal broker.
(2)
"Brokerage" means a principal broker as defined in section 5-20.5-8
and his or her
affiliated licensees.
(3) "Buyer"
means a person who acquires or seeks to acquire an ownership interest in
real estate.
(4) "Client"
means a buyer, seller, tenant or landlord who has agreed to representation by
a licensee in a real estate transaction, evidenced by
an executed mandatory relationship
disclosure, to whom a licensee owes the duties set forth in
section 5-20.6-5.
(5) "Client
representation contract" means an express, written contract between a
principal broker or his or her affiliated licensees and a
client that authorizes the principal broker
or his or her affiliated licensees to act as a client
representative for a buyer, seller, landlord, or
tenant and meets the requirements of section 5-20.6-10.
(6) "Confidential
information" means the following information:
(i)
A buyer or tenant's willingness to pay more than the offered price;
(ii) A seller or
landlord's willingness to accept less than the asking price;
(iii) A buyer or
tenant's previous offers made to purchase or lease real estate;
(iv)
A seller or landlord's previous offers received to purchase or lease
real estate;
(v) Any parties'
motivating factors;
(vi)
Any parties' willingness to agree to other financing terms;
(vii) Any facts or
suspicions regarding circumstances, other than known material defects
of a property that a licensee must in all cases
disclose, that may psychologically impact or
stigmatize any real estate; or
(viii) Any information
about a party's assets, liabilities, income, or expenses.
(7)
"Customer" means a buyer, seller, tenant, or landlord who has agreed
to certain
assistance by a licensee in a real estate transaction, evidenced
by an executed mandatory
relationship disclosure, to whom a licensee owes the duties set
forth in section 5-20.6-4.
(8) "Designated
client representative" means an affiliated licensee appointed by the
principal broker or his or her designee to represent a buyer,
seller, tenant, or landlord in a real
estate transaction.
The affiliated licensee
so designated shall obtain the informed, written consent of the
buyer, seller, tenant, or landlord with a signed mandatory
relationship disclosure pursuant to
section 5-20.6-8.
(9)
"Director" means the director of business regulation for the state.
(10) "Dual
facilitator" means a single licensee who, with the prior written consent
of
both parties assists a seller client and a buyer client in
the same transaction subject to the
limitations set forth in section 5-20.6-6.
(11)
"Landlord" means a person who leases or attempts to lease his
ownership interest in
real estate to another person.
(12) "Lease"
means an express written or oral contract between a landlord and tenant for
the use or occupancy by the tenant of real estate that is
owned by another person.
(13)
"Licensee" means an individual licensed by the director as a real
estate broker or
real estate salesperson pursuant to chapter 5-20.5.
(14) "Mandatory
relationship disclosure" means a form that describes the relationship
between a consumer and a principal broker and his or her
affiliated licensees that meets the
requirements of section 5-20.6-8.
(15) "Ministerial
acts" means acts of an administrative nature that licensees perform for
client or customers, including, but not limited to, showing
property; preparing offers or
agreements to sell, purchase, exchange, rent, or lease;
conveying offers or agreements to the
parties; and providing information and assistance.
(16) "Principal
broker" means a real estate broker licensed by the director who is
designated by the brokerage to be responsible for the
supervision and activities of his or her
affiliated licensees in accordance with this chapter and chapter
5-20.5.
(17) "Real
estate" refers to vacant land on which a building is intended to be
constructed
for use as one or two (2) residential dwellings or land with physical improvements consisting of a
house and/or structure comprised of four (4) or fewer
residential units.
(18) "Sales
agreement" means an express written contract signed by the buyer and
seller
for the purchase and sale of the real estate.
(19) "Sell,"
"sale," or "sold" means a transaction for the transfer of
real estate from a
seller to a buyer, including, but not limited to, exchanges
of real estate between the seller and
buyer and transactions involving the creation of a sales
agreement.
(20) "Seller"
means a person who sells or attempts to sell an ownership interest in real
estate to another person.
(21) "Tenant"
means a person who acquired or seeks to acquire an interest in real estate
that entitles him or her to occupy or use a property that
is owned by another person.
(22) "Transaction
coordinator" means a principal broker or his or her designee who
supervises a real estate transaction in a neutral capacity in
which one affiliated licensee represents
a buyer or tenant as a designated client representative
and another affiliated licensee represents a
seller or landlord as a designated client representative in the
same transaction. A transaction
coordinator does not own any fiduciary duties to any party in a
transaction except the duties to
protect the confidential information of the parties and to
properly account for money placed in his
or her care.
(23) "Transaction
facilitator" means a licensee who provides assistance to a buyer, seller,
tenant, or landlord, or both, in a real estate transaction
as a neutral facilitator. A transaction
facilitator does not owe any fiduciary duties to any party in a transaction
but does owe the duties
set forth in section 5-20.6-4.
SECTION 2. This act shall take effect upon passage.
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LC01343/SUB A/2
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