Introduced By: Senator Bates
Date Introduced : January 27, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 5-20.5-1 of the General Laws in Chapter 5-20.5 entitled "Real Estate Brokers and Salespersons" is hereby amended to read as follows:
5-20.5-1. Definitions. -- When used in this chapter, unless the context indicates otherwise:
(1) "Associate broker" means any licensed real estate broker who is employed or engaged as an independent contractor by or in behalf of a licensed real estate broker to do or deal in any activity as included or comprehended by the definitions of a real estate broker in subdivision (4), for compensation or otherwise;
(2) "Director" means the director of business regulation for the state;
(3) "Real estate", as used in this chapter, shall include leaseholds as well as any and every interest or estate in land, whether corporeal or incorporeal, freehold or non-freehold, and whether the property is situated in this state or elsewhere;
(4) "Real estate broker", within the meaning of this
chapter, shall include all persons, partnerships, associations,
and corporations, foreign and domestic, who for a fee, commission,
or other valuable consideration, or who with the intention or
expectation of receiving or collecting a fee, commission, or other
valuable consideration, lists, sells, purchases, exchanges, rents,
leases, appraises residential property containing four (4) or
fewer units, or auctions any real estate, or the improvements
thereon including options or who negotiates or attempts to negotiate
any such activity; or who advertises or holds him or herself,
itself or themselves out as engaged in those activities; or who
directs or assists in the procuring of a purchaser or prospect
calculated or intended to result in a real estate transaction {DEL ;
or shall negotiate or attempt to negotiate a loan secured or to
be secured by mortgage or other encumbrance upon a transfer of
any real estate DEL}. The term "Real estate broker"
shall also include any person, partnership, association, or corporation
employed by or on behalf of the owner or owners of lots, or other
parcels of real estate, at a stated salary, or upon a fee, commission
or otherwise, to sell that real estate, or any parts thereof,
in lots or other parcels, and who shall sell, exchange or lease,
or offer or attempt or agree to negotiate the sale, exchange or
lease of any such lot or parcel of real estate;
(5) "Real estate salesperson" means and include any person employed or engaged as an independent contractor by or on behalf of a licensed real estate broker to do or deal in any activity as included or comprehended by the definitions of a real estate broker in subdivision (4), for compensation or otherwise.
SECTION 2. Chapter 5-20.5 of the General Laws entitled "Real Estate Brokers and Salespersons" is hereby amended by adding thereto the following section:
{ADD 5-20.5-27. License required for ownership. -- ADD} {ADD No person, firm or corporation shall have an ownership interest in a real estate brokerage firm nor participate in the operation of the real estate brokerage firm if the person, firm or corporation's real estate broker's license, issued pursuant to the provisions of this chapter, has been revoked. ADD}
SECTION 3. Section 42-14-12 of the General Laws in Chapter 42-14 entitled "Department of Business Regulation" is hereby amended to read as follows:
42-14-12. Sales of businesses. -- Any person, firm,
or corporation acting as a broker for the sale of an existing
business or the transfer of all or a substantial part of the materials,
supplies, merchandise, or other inventory of an existing business
or for the making of a bulk transfer under chapter 6 of title
6A for a fee, charge, or commission shall be required to post
a bond in the sum of twenty thousand dollars ($20,000) with the
department of business regulation with surety or sureties approved
by the director of the department. Provided, however, that the
provisions of this section shall not apply to attorneys, any person
licensed as a real estate broker, or real estate salesman pursuant
to the provisions of chapter 20.5 of title 5 {DEL . DEL}
{ADD , except that no person, firm, or corporation shall act or
hold himself or herself out as a business broker unless he or
she holds a real estate broker's license issued by the department
of business regulation that has not been revoked. ADD}
SECTION 4. This act shall take effect upon passage.
