REAL ESTATE BROKER RESPONSIBILITIES H.B. 4416 (H-3) & 4417 (H-2):
FLOOR SUMMARY
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House Bill 4416 (Substitute H-3 as reported without amendment)
House Bill 4417 (Substitute H-2 as reported without amendment)
Sponsor: Representative Tonya Schuitmaker (H.B. 4416)
Representative Barbara Farrah (H.B. 4417)
House Committee: Regulatory reform
Senate Committee: Economic Development and Regulatory Reform
CONTENT
The bills would amend Article 25 of the Occupational Code, which governs real estate brokers and salespeople. The bills are tie-barred and would take effect on July 1, 2008.
House Bill 4416 (H-3) would do the following:
-- Identify duties that a real estate broker or salesperson would owe to his or her client, and services the broker or salesperson would have to provide, if he or she were acting under a service provision agreement.
-- Define "service provision agreement" as a buyer agency agreement or listing agreement executed by a real estate broker and a client that establishes an agency relationship.
-- Allow the specified services, other than marketing the client's property, to be waived in a "limited service agreement".
-- For a broker who was involved at the closing of a real estate or business opportunity transaction, include in the required services (which could not be waived) furnishing to the buyer or seller a complete and detailed closing statement signed by the broker, showing each party all receipts and disbursements affecting that party.
-- Prohibit a real estate broker or salesperson representing a client under a service provision agreement from advertising the property as "for sale by owner" or otherwise misleading the public to believe that the seller was not represented by a broker.
-- Include failure to provide the required services as grounds for administrative sanctions.
House Bill 4417 (H-2) would include the required services and duties in the statutory form for disclosure of real estate agency relationships, and would prescribe the language of a limited service agreement form.
MCL 339.2501 et al. (H.B. 4416) Legislative Analyst: Suzanne Lowe
339.2517 (H.B. 4417)
FISCAL IMPACT
The bills would have no fiscal impact on State or local government.
Date Completed: 3-17-08 Fiscal Analyst: Elizabeth Pratt/Maria Tyszkiewicz
floor\hb4416 Analysis available @ http://www.michiganlegislature.org
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4416&4417/0708