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S1051aa.....................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE LAW - Amends existing law relating to real estate
licenses to revise definitions; to revise minimum requirements for certain
real estate licenses; to provide that certain expired licenses shall be
automatically terminated; to provide for inactive status of licenses; to
provide for receipt of certain referral fees by inactive licensees; to
provide for reactivation of inactive licenses; to provide for notice by
licensee of certain changes; to provide that licenses must be signed; to
provide for effective date for application requests for licensure and
license changes; to revise grounds for denial or nonrenewal of license; to
provide that discovery of certain facts may be grounds for termination of
license; to provide fees; to provide that certain prelicense course
requirements may be waived or modified; to revise continuing education
requirements; to revise certification requirements; to provide for
disclosure of fees, notice of course changes and payment of certain fees by
course providers; to provide adoption of national standards and to require
national certification for certain courses; to provide procedures for wall
licenses requiring changes; to provide for the return of certain wall
licenses to the Commission; to prohibit commingling of entrusted moneys; to
provide that the Commission may approve certain entities as escrow
depositories; to provide for disbursement of funds to escrow agents; to
provide for treatment of electronically generated agreements; to provide
that a broker who terminates association with a sales associate shall
notify the Commission; to provide that certain records shall be made
available for investigatory purposes; to provide that licensees shall
report convictions, incompetency declarations, adverse civil judgments and
adverse final administrative actions within twenty days; to revise
disclosure and writing requirements; and to revise duties of brokerages and
licensees to clients.
01/31 Senate intro - 1st rdg - to printing
02/01 Rpt prt - to Com/HuRes
02/16 Rpt out - to 14th Ord
02/22 Rpt out amen - to engros
02/23 Rpt engros - 1st rdg - to 2nd rdg as amen
02/26 2nd rdg - to 3rd rdg as amen
03/02 3rd rdg as amen - PASSED - 33-0-2
AYES -- Andreason, Branch, Brandt, Bunderson, Burtenshaw, Cameron,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, Lodge,
Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Williams,
NAYS -- None
Absent and excused -- Boatright, Whitworth
Floor Sponsor -- Goedde
Title apvd - to House
03/05 House intro - 1st rdg - to Bus
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg as amen
03/16 3rd rdg as amen - PASSED - 64-0-6
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Callister, Chase Collins, Crow, Cuddy, Deal, Denney,
Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould,
Hadley, Hammond, Harwood, Higgins, Hornbeck, Jaquet, Jones, Kellogg,
Kendell, Kunz, Lake, Langford, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy, Raybould,
Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
Smylie, Stevenson, Stone, Swan, Tilman, Trail, Wood, Young, Mr.
Speaker
NAYS -- None
Absent and excused -- Bruneel, Campbell, Clark, Henbest, Pischner,
Wheeler
Floor Sponsor -- Kellogg
Title apvd - to Senate
03/19 To enrol
03/20 Rpt enrol - Pres signed
03/21 Sp signed
03/22 To Governor
03/23 Governor signed
Session Law Chapter 123
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1051
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2004, IDAHO
3 CODE, TO REVISE DEFINITIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
4 SECTION 54-2012, IDAHO CODE, TO REVISE MINIMUM REQUIREMENTS FOR INDIVIDUAL
5 PRIMARY IDAHO REAL ESTATE LICENSES; AMENDING SECTION 54-2014, IDAHO CODE,
6 TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 54-2015, IDAHO CODE, TO
7 REVISE THE PROCEDURE FOR WAIVER REQUESTS, TO PROVIDE CORRECT TERMINOLOGY
8 AND TO PROVIDE A CORRECT CODE CITATION; AMENDING SECTION 54-2016, IDAHO
9 CODE, TO REVISE REQUIREMENTS FOR PRIMARY IDAHO REAL ESTATE LICENSES FOR
10 LEGAL BUSINESS ENTITIES, SOLE PROPRIETORSHIPS AND BRANCH OFFICES AND TO
11 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 54-2018, IDAHO CODE, TO
12 DELETE REFERENCE TO POSTMARK, TO PROVIDE THAT CERTAIN EXPIRED LICENSES
13 SHALL BE AUTOMATICALLY TERMINATED AND MAY NOT BE RENEWED, TO PROVIDE FOR
14 THE PLACEMENT OF LICENSES ON INACTIVE STATUS, TO PROVIDE FOR THE RECEIPT
15 BY INACTIVE LICENSEES OF CERTAIN REFERRAL FEES, TO PROVIDE FOR THE
16 REACTIVATION OF INACTIVE LICENSES, TO PROVIDE FOR NOTICE BY THE LICENSEE
17 TO THE COMMISSION OF CERTAIN CHANGES, TO PROVIDE THAT ONLY LICENSES SIGNED
18 BY LICENSEES SHALL BE VALID, TO PROVIDE FOR THE EFFECTIVE DATE FOR APPLI-
19 CATION REQUESTS FOR LICENSURE AND LICENSE CHANGES AND TO PROVIDE CORRECT
20 TERMINOLOGY; AMENDING SECTION 54-2019, IDAHO CODE, TO REVISE GROUNDS FOR
21 DENIAL OR NONRENEWAL OF LICENSE AND TO PROVIDE THAT THE DISCOVERY OF CER-
22 TAIN FACTS AFTER A LICENSE HAS BEEN ISSUED MAY BE GROUNDS FOR THE EXPIRA-
23 TION, TERMINATION, SUSPENSION OR REVOCATION OF A LICENSE; AMENDING SECTION
24 54-2020, IDAHO CODE, TO PROVIDE THAT THE COMMISSION SHALL ASSESS FEES;
25 AMENDING SECTION 54-2022, IDAHO CODE, TO PROVIDE THAT THE COMMISSION MAY
26 WAIVE OR MODIFY ONE OR MORE PRELICENSE COURSE REQUIREMENTS UNDER CERTAIN
27 CONDITIONS; AMENDING SECTION 54-2023, IDAHO CODE, TO REVISE CONTINUING
28 EDUCATION REQUIREMENTS; AMENDING SECTION 54-2025, IDAHO CODE, TO REVISE
29 CERTIFICATION REQUIREMENTS; AMENDING SECTION 54-2027, IDAHO CODE, TO PRO-
30 VIDE FOR THE DISCLOSURE OF FEES BY COURSE PROVIDERS, TO PROVIDE FOR NOTICE
31 TO THE COMMISSION OF COURSE CHANGES, TO PROVIDE THAT THE COMMISSION MAY
32 REQUIRE COURSE PROVIDERS TO PAY A NONREFUNDABLE POSTING AND RECORDING FEE;
33 AMENDING SECTION 54-2036, IDAHO CODE, TO PROVIDE THAT THE COMMISSION MAY
34 ADOPT NATIONAL STANDARDS AND REQUIRE NATIONAL CERTIFICATION FOR CERTAIN
35 COURSES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 54-2039,
36 IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 54-2040,
37 IDAHO CODE, TO PROVIDE THAT WALL LICENSES REQUIRING CHANGES SHALL BE
38 RETURNED TO THE COMMISSION WITH A FEE FOR PRINTING AND ISSUANCE OF A NEW
39 LICENSE, TO PROVIDE FOR THE RETURN TO THE COMMISSION OF CERTAIN WALL
40 LICENSES, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE A TECHNICAL CORREC-
41 TION; AMENDING SECTION 54-2041, IDAHO CODE, TO PROHIBIT THE COMMINGLING OF
42 ENTRUSTED MONEYS WITH CERTAIN OTHER MONEYS AND TO PROVIDE CORRECT TERMI-
43 NOLOGY; AMENDING SECTION 54-2042, IDAHO CODE, TO PROVIDE THAT THE COMMIS-
44 SION MAY APPROVE CERTAIN ENTITIES AS ESCROW DEPOSITORIES UPON DISCLOSURE
45 OF SPECIFIED INFORMATION; AMENDING SECTION 54-2046, IDAHO CODE, TO PROVIDE
46 FOR THE DISBURSEMENT OF FUNDS TO ESCROW AGENTS; AMENDING SECTION 54-2050,
2
1 IDAHO CODE, TO PROVIDE THAT PARTIES MAY AGREE IN WRITING THAT CERTAIN COP-
2 IES AND ELECTRONICALLY GENERATED AGREEMENTS SHALL BE ENFORCEABLE AS ORIGI-
3 NALS; AMENDING SECTION 54-2052, IDAHO CODE, TO PROVIDE THAT PARTIES MAY
4 AGREE IN WRITING THAT ELECTRONICALLY GENERATED AGREEMENTS SHALL BE
5 ENFORCEABLE AS ORIGINALS; AMENDING SECTION 54-2056, IDAHO CODE, TO PROVIDE
6 THAT A BROKER WHO TERMINATES THE ASSOCIATION OF A SALES ASSOCIATE FOR CER-
7 TAIN VIOLATIONS SHALL PROMPTLY NOTIFY THE COMMISSION IN WRITING; AMENDING
8 SECTION 54-2058, IDAHO CODE, TO PROVIDE THAT CERTAIN RECORDS SHALL BE MADE
9 AVAILABLE TO THE COMMISSION FOR INVESTIGATORY PURPOSES; AMENDING SECTION
10 54-2061, IDAHO CODE, TO PROVIDE THAT LICENSEES SHALL REPORT CONVICTIONS,
11 INCOMPETENCY DECLARATIONS AND ADVERSE CIVIL JUDGMENTS TO THE COMMISSION
12 WITHIN TWENTY DAYS; AMENDING SECTION 54-2062, IDAHO CODE, TO PROVIDE THAT
13 LICENSEES SHALL REPORT ADVERSE FINAL ADMINISTRATIVE ACTIONS TO THE COMMIS-
14 SION WITHIN TWENTY DAYS; AMENDING SECTION 54-2085, IDAHO CODE, TO REVISE
15 DISCLOSURE AND WRITING REQUIREMENTS AND TO MAKE A TECHNICAL CORRECTION;
16 AND AMENDING SECTION 54-2087, IDAHO CODE, TO REVISE DUTIES AND OBLIGATIONS
17 OF BROKERAGES AND LICENSEES TO CLIENTS.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Section 54-2004, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 54-2004. DEFINITIONS. As used in this chapter:
22 (1) "Associate broker" means an individual who has qualified personally
23 as a real estate broker in Idaho under this chapter, but is licensed under,
24 associated with and represents a designated broker in the performance of any
25 acts requiring a real estate license in Idaho described in subsection (25) of
26 this section.
27 (2) "Business opportunity" means and includes an established business,
28 good will of an established business, or any interest therein, or any one (1)
29 or combination thereof, where a sale or transfer of an interest in land,
30 including, but not limited to, an assignment of a lease, is involved in the
31 transaction "Branch office" means an office operated by a licensed real estate
32 broker or licensed legal business entity, separate and apart from the main
33 office. A branch office may be licensed or unlicensed, in accordance with this
34 chapter.
35 (3) "Brokerage agreement" means a written contract between a buyer,
36 seller, or both, and a real estate brokerage for agency representation in a
37 regulated real estate transaction.
38 (34) "Brokerage company" means a real estate business, whether a sole
39 proprietorship, a legal entity, or any other licensed person engaged in acts
40 requiring a real estate license in Idaho, and which is conducting or holding
41 itself out as conducting the business of real estate through a designated bro-
42 ker.
43 (5) "Business name" means the name that appears on the real estate
44 broker's license issued by the commission.
45 (6) "Business opportunity" means and includes an established business,
46 good will of an established business, or any interest therein, or any one (1)
47 or combination thereof, where a sale or transfer of an interest in land
48 including, but not limited to, an assignment of a lease, is involved in the
49 transaction.
50 (47) "Commission" means the Idaho real estate commission, unless the con-
51 text clearly indicates a different meaning.
52 (58) "Convicted" means a plea of nolo contendere or guilty, a jury ver-
3
1 dict of guilty or a court decision of guilt whether or not a judgment or sen-
2 tence has been imposed, withheld or suspended.
3 (9) "Cooperative sale" means a transaction involving two (2) or more bro-
4 kers.
5 (610) "Council" means the Idaho real estate education council.
6 (711) "Dealer in options" means any person, firm, partnership, association
7 or corporation who shall directly or indirectly take, obtain or use options to
8 purchase, exchange, lease option or lease purchase real property or any inter-
9 est therein for another or others whether or not the options shall be in his
10 or its name and whether or not title to the property shall pass through the
11 name of the person, firm, partnership, association or corporation in connec-
12 tion with the purchase, sale, exchange, lease option or lease purchase of the
13 real property, or interest therein.
14 (12) "Designated broker" means an individual who is licensed as a real
15 estate broker in Idaho and who is designated by the brokerage company to be
16 responsible for the supervision of the brokerage company and the activities of
17 any associated licensees in accordance with this chapter.
18 (13) "Distance learning course" means, in relation to a real estate course
19 offering, a real estate course that is delivered, not as a live course, but
20 through a medium in which the instructor and student are separated by distance
21 or time.
22 (814) "Double contract" means two (2) or more written or unwritten con-
23 tracts of sale, purchase and sale agreements, loan applications, or any other
24 agreements, one (1) of which is not made known to the prospective loan under-
25 writer or the loan guarantor, to enable the buyer to obtain a larger loan than
26 the true sales price would allow, or to enable the buyer to qualify for a loan
27 which he or she otherwise could not obtain. An agreement or loan application
28 is not made known unless it is disclosed in writing to the prospective loan
29 underwriter or loan guarantor.
30 (9) "Designated broker" means an individual who is licensed as a real
31 estate broker in Idaho and who is designated by the brokerage company to be
32 responsible for the supervision of the brokerage company and the activities of
33 any associated licensees in accordance with this chapter.
34 (105) "Executive director" means the executive director of the Idaho real
35 estate commission.
36 (16) "Fee or commission" means a payment, actual, promised or expected, as
37 compensation for the performance of any act requiring a real estate license.
38 (117) "Legal business entity" means and includes any type of corporation,
39 partnership, limited liability company or limited liability partnership, a
40 governmental entity, trust or other entity capable of conducting business.
41 (128) "Licensee" means any person who is licensed in accordance with this
42 chapter to engage in the business or act in the capacity of real estate bro-
43 ker, associate broker or real estate salesperson.
44 (139) "Limited broker" means a broker individually qualified to do busi-
45 ness in Idaho, but who may not have associate brokers or salespersons licensed
46 with that broker.
47 (20) "Live presentation" means, in reference to a real estate course
48 offering, a real estate course that is personally presented by the instructor
49 and personally attended by the student at the same facility.
50 (21) "Main office" means the principal location where the real estate bro-
51 ker is licensed to transact business.
52 (1422) "Person" means and includes an individual, or any legal business
53 entity.
54 (1523) "Primary Idaho license" means an Idaho real estate license not
55 obtained by reciprocal agreement that is not contingent upon continuance of a
4
1 license in another state or jurisdiction.
2 (1624) "Provisional license" means an extension of the period of active
3 licensure, beyond the licensee's expiration date, granted by the commission
4 for the purpose of allowing the licensee to complete the continuing education
5 requirements set forth in section 54-2023, Idaho Code, or for any other pur-
6 pose allowed by this chapter.
7 (1725) "Real estate broker" means and includes:
8 (a) Any person other than a real estate salesperson, who, directly or
9 indirectly, while acting for another, for compensation or a promise or an
10 expectation thereof, engages in any of the following: sells, lists, buys,
11 or negotiates, or offers to sell, list, buy or negotiate the purchase,
12 sale, option or exchange of real estate or any interest therein or busi-
13 ness opportunity or interest therein for others.;
14 (b) Any actively licensed broker while, directly or indirectly, acting on
15 the broker's own behalf;
16 (c) Any person who represents to the public that the person is engaged in
17 any of the above activities;
18 (d) Any person who directly or indirectly engages in, directs, or takes
19 any part in the procuring of prospects, or in the negotiating or closing
20 of any transaction which does or is calculated to result in any of the
21 acts above set forth.;
22 (e) A dealer in options as defined in this section.
23 (1826) "Real estate salesperson" or "salesperson" means any person who has
24 qualified and is licensed as a real estate salesperson in Idaho under this
25 chapter, and is licensed under, associated with, and represents a designated
26 broker in the performance of any acts requiring a real estate license in Idaho
27 described in subsection (25) of this section.
28 (1927) "Reciprocal license" means an Idaho real estate license that is
29 issued to any person based upon pursuant to the terms of a specific, written
30 reciprocal agreement between Idaho and another state where the person holds a
31 primary license or jurisdiction, and that is contingent upon the licensee's
32 maintaining a license in the other state or jurisdiction.
33 (208) "Regulated real estate transaction" means those real estate transac-
34 tions for which a real estate license is required under chapter 20, title 54,
35 Idaho Code.
36 (219) "Responsible broker" means the designated broker in the regulated
37 real estate transaction who is responsible for the accounting and transaction
38 files for the transaction, in the manner described in section 54-2048, Idaho
39 Code.
40 (2230) "Sales associate" means a salesperson or an associate broker
41 licensed under and associated with a designated broker.
42 (231) "State or jurisdiction" means and includes any of the fifty (50)
43 states and any foreign jurisdiction that issue real estate licenses substan-
44 tially similar to those provided for in this chapter.
45 (32) "Successfully completed" means, in reference to a real estate course
46 offering, completing all required course hours and, except where the licensee
47 seeks continuing education credit for having regularly attended the live pre-
48 sentation of a course, passing a commission-approved final examination.
49 (2433) "Wall license" means the certificate of license issued by the com-
50 mission.
51 SECTION 2. That Section 54-2012, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 54-2012. MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE.
5
1 (1) Requirements for all individual primary licenses. Unless a qualification
2 is waived or modified by the commission for good cause and upon special con-
3 sideration, and except as provided in section 54-2015, Idaho Code, each person
4 seeking a primary Idaho real estate license as a salesperson, associate broker
5 or designated broker shall meet all of the following minimum qualifications:
6 (a) Be an individual;
7 (b) Be eighteen (18) years of age or older;
8 (c) Furnish satisfactory proof that the applicant graduated from an
9 accredited high school or its equivalent or holds a certificate of general
10 education;
11 (d) Not have had a real estate or other professional or occupational
12 license revoked, suspended, or surrendered, or the renewal refused, for a
13 disciplinary violation involving fraud, misrepresentation or dishonest or
14 dishonorable dealing, in Idaho or any other jurisdiction, within five (5)
15 years immediately prior to the date the application for license is submit-
16 ted to the commission;
17 (e) Not have been convicted, issued any fine, placed on probation,
18 received a withheld judgment or completed any sentence of confinement for
19 or on account of any felony, or any misdemeanor involving fraud, misrepre-
20 sentation or dishonest or dishonorable dealing, in a state or federal
21 court, within five (5) years immediately prior to the date the application
22 for license is submitted to the commission;
23 (f) Complete all prelicense education requirements as provided for in
24 section 54-2022, Idaho Code, for a salesperson's or broker's license;
25 (g) Pass the commission-approved real estate licensing exam for a sales
26 or broker license in the time and manner stated in section 54-2014, Idaho
27 Code, and pay the required exam fees;
28 (h) Be fingerprinted by an authorized law enforcement agency, and file
29 these fingerprints with the commission for the purpose of determining
30 whether the qualifications for licensure are fulfilled; the fingerprints
31 will be forwarded to the federal bureau of investigation or the Idaho
32 department of law enforcement; all fees charged by the commission and the
33 law enforcement agency for fingerprint services shall be paid by the
34 applicant;
35 (i) Sign and file with the commission an irrevocable consent to service,
36 appointing the commission's executive director to act as the licensee's
37 agent upon whom all judicial and other process or legal notices directed
38 to such licensee may be served, and consenting that any lawful process
39 against the licensee that is served upon the executive director shall be
40 of the same legal force and validity as if served upon the licensee and
41 that the authority shall continue in force so long as any liability
42 remains outstanding in this state. Upon receipt of any such process or
43 notice, the executive director shall immediately mail a copy of the same
44 by certified mail to the last known business address of the licensee. All
45 licensees shall provide the commission a full and current mailing address
46 and shall immediately notify the commission in writing of any change in
47 mailing address;
48 (j) If licensing as an active salesperson or associate broker, provide
49 the name and physical address of the main business location of the desig-
50 nated broker with whom the applicant will be licensed, and the signature
51 of that broker; or, if licensing as a designated broker, provide the name
52 and physical address of the main business location. No Idaho sales associ-
53 ate may be licensed under or associated with more than one (1) Idaho bro-
54 ker at a time;
55 (k) Submit a properly completed application and all license, application
6
1 and other fees listed in section 54-2020, Idaho Code, or as otherwise
2 required by statute or rule; and
3 (l) Provide satisfactory proof of meeting the mandatory errors and omis-
4 sions insurance requirement for real estate licensees, as stated in sec-
5 tion 54-2013, Idaho Code.
6 (2) Additional requirements for broker and associate broker licenses.
7 Applicants seeking a primary Idaho license as a broker or associate broker
8 shall meet the additional following qualifications:
9 (a) Provide satisfactory evidence of having been actively engaged, on a
10 full-time basis, for two (2) years as a licensed real estate salesperson
11 within five (5) years immediately prior to the date upon which the indi-
12 vidual makes application:. Such evidence shall demonstrate the
13 productiveness of the licensed activity to have been generally commensu-
14 rate with that of other licensees practicing in a similar capacity. List-
15 ings, sales, options or other licensed activities may be considered by the
16 commission in determining whether the applicant meets this qualification.
17 (i) A broker or associate broker applicant may be required to fur-
18 nish a report of listings and sales accomplished by the applicant
19 during two (2) or more years within the last five (5) years of licen-
20 sure immediately prior to the application date;
21 (ii) This report shall be certified as correct by the broker or bro-
22 kers with whom the applicant has been associated;
23 (iii) The broker experience requirement may be modified or reduced,
24 in whole or in part, at the discretion of the commission, based upon
25 the applicant's educational background, or experience in related or
26 affiliated business activities;
27 (iv) The commission in its discretion may make such additional
28 investigation and inquiry relative to the applicant as it shall deem
29 advisable;
30 (b) Designate a physical office location and a business name. The commis-
31 sion may refuse to issue a license to any person if the business name is
32 the same as that of any person whose license has been suspended or revoked
33 or is so similar as to be easily confused with another licensee's name by
34 members of the general public. However, nothing in this subsection shall
35 restrict an individual from obtaining a license in his or her own legal
36 name.
37 (c) If currently licensed in Idaho as a salesperson and applying for a
38 license as an Idaho broker or associate broker, the individual shall sub-
39 mit a new fingerprint card for processing with the application and pay
40 associated fees.
41 SECTION 3. That Section 54-2014, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 54-2014. LICENSE EXAMS. (1) Exam required. Unless a written certificate
44 of waiver is obtained from the commission and submitted with the application,
45 an individual applicant seeking a primary Idaho real estate license shall take
46 and pass the national portion and the Idaho state portion of an approved exam
47 administered by or through the commission. The license applicant shall take
48 and pass the required portion or portions of the exam within no more than
49 twelve (12) months immediately preceding the date of the license application.
50 (2) Preregistration for the exam. An applicant individual may preregister
51 to sit and take the exam by submitting a completed preregistration exam appli-
52 cation form and a nonrefundable exam fee in an amount established by motion of
53 the commission, not to exceed one hundred dollars ($100). The exam application
7
1 and fee shall be submitted directly to the testing company administering the
2 exam, or to the commission, as specified by the commission, and shall be post-
3 marked in the manner and time specified by the commission. Failure to appear
4 for any reason for the exam shall cancel the exam application. A new exam
5 application and fee shall be required to take the exam at a future time.
6 (3) Walk-in registration for the exam. An applicant individual may appear
7 at a testing center and take the exam without having preregistered so long as
8 seating remains available at the center. The applicant individual shall submit
9 a completed exam application and a walk-in exam fee in an amount established
10 by motion of the commission, not to exceed one hundred ten dollars ($110), at
11 the time the applicant individual is admitted to take the exam.
12 (4) Waiver of national portion of exam. An applicant individual who has
13 obtained a written certificate from the commission waiving the national por-
14 tion of the exam shall be required to take and pass the Idaho state portion of
15 the exam only. The certificate of waiver and exam fee shall be submitted with
16 the application for exam.
17 (5) Failure to pass the exam. An applicant individual who fails to pass
18 the exam may reapply to take another exam. The applicant individual must com-
19 plete a new exam application and submit a new exam fee.
20 (6) The commission shall establish, by motion, fees for the exam which,
21 in its discretion, are sufficient to raise the revenue required to administer
22 the exam. Fees so established shall remain effective from year to year and may
23 be altered only upon proper motion by the commission.
24 SECTION 4. That Section 54-2015, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-2015. INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE OR JURISDICTION
27 SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
28 ely licensed as a real estate broker or salesperson in another state or juris-
29 diction at the time of application for a primary Idaho real estate license
30 shall meet all qualifications listed in section 54-2012, Idaho Code, for the
31 type of license sought, except that the applicant shall not be required to
32 furnish proof of the educational prerequisites described in subsections (1)(c)
33 and (1)(f) of section 54-2012, Idaho Code. In addition, such applicant shall
34 provide a current, certified license history from the other licensing state or
35 jurisdiction, which history shall indicate any disciplinary action taken
36 against the applicant's license by the other licensing state or jurisdiction,
37 and the status and standing of the applicant's license in the other state or
38 jurisdiction.
39 (2) An applicant individual who holds an active license, in good
40 standing, in another state or jurisdiction may, upon written request from the
41 commission, obtain a certificate of waiver of the national portion of the exam
42 required for Idaho licensure. To have the national portion of the exam waived,
43 a A request for waiver shall indicate the individual's mailing address to
44 which the commission is to deliver the certificate of waiver. The certificate
45 of waiver must be obtained from the Idaho real estate commission and shall be
46 submitted with the application for exam as provided in subsection (4) of sec-
47 tion 54-2014, Idaho Code.
48 (3) An individual who is currently and actively licensed in another state
49 or jurisdiction that administers a real estate exam may be issued a primary
50 Idaho license without further exam or proof of educational prerequisites pur-
51 suant to written agreement between Idaho and the other state or jurisdiction,
52 provided that such other state or jurisdiction allows the issuance of real
53 estate licenses in substantially the same manner as set forth in this subsec-
8
1 tion.
2 SECTION 5. That Section 54-2016, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 54-2016. PRIMARY IDAHO LICENSES FOR LEGAL BUSINESS ENTITIES, SOLE
5 PROPRIETORSHIPS AND BRANCH OFFICES -- ADDITIONAL REQUIREMENTS. (1) Legal busi-
6 ness entities. Each legal business entity, as defined in section 54-2004,
7 Idaho Code, shall be licensed by the Idaho real estate commission to engage in
8 the real estate business in Idaho and shall make proper application, pay all
9 required fees, and meet all requirements listed below.
10 (a) Each legal business entity shall have a properly licensed individual
11 designated broker, who shall be held responsible for the activities of the
12 licensed entity. The individual designated broker shall also hold the fol-
13 lowing legal position within the licensed entity:
14 (i) Corporation -- an officer;
15 (ii) Partnership or limited partnership -- a general partner;
16 (iii) Limited liability company -- a member or manager.
17 It is the intent of the law that in these and in any other instance, tThe
18 individual designated broker for any business entity shall have full
19 authority to act on behalf of the licensed business entity, and shall sub-
20 mit sufficient and satisfactory proof thereof with the application for
21 license. Such proof shall include a list of the entity's officers, direc-
22 tors, members or managers, as reflected in the minutes, resolutions or
23 other similar business documents of the entity. All acts of that individ-
24 ual as designated broker shall be considered acts of the licensed business
25 entity. Nothing in this section is intended to create liability to a legal
26 business entity for illegal or fraudulent acts by the individual broker
27 performed solely on his own account.
28 (b) A license issued to a legal business entity, as defined in this chap-
29 ter, is effective only as long as the individual designated broker's
30 license is in active status and in effect. If the individual so designated
31 has a license refused, revoked, suspended or otherwise made inactive by
32 the commission, or if the individual designated broker voluntarily surren-
33 ders the individual license or ceases to be connected with the entity in
34 the manner required above, the business entity shall have ten (10) busi-
35 ness days in which to designate another qualified individual as designated
36 broker before the entity's license is terminated, and the licenses of all
37 associated licensees are made inactive.
38 (c) One (1) individual may act as designated broker for more than one (1)
39 licensed business entity, however, all entities shall have their main
40 offices in the same physical location.
41 (d) Satisfactory proof of mandatory errors and omissions insurance shall
42 be provided for both the individual designated broker and the licensed
43 business entity.
44 (e) A legal business entity doing business under an assumed name shall
45 provide satisfactory proof of having legally filed a certificate of
46 assumed name with the Idaho secretary of state.
47 (2) Sole proprietorships. An individual designated broker not licensed
48 with a legal business entity, as defined in section 54-2004(11), Idaho Code,
49 shall be licensed as a sole proprietor. Each sole proprietorship seeking a
50 real estate license shall meet all of the following requirements:
51 (a) A licensed sole proprietor doing business under an assumed business
52 name shall provide satisfactory proof of having legally filed a certifi-
53 cate of assumed name with the Idaho secretary of state;
9
1 (b) Satisfactory proof of mandatory errors and omissions insurance shall
2 be provided for the licensed designated broker of a sole proprietorship.
3 (3) Multiple business names prohibited. A legal business entity or sole
4 proprietorship shall be licensed under only one (1) business name.
5 (4) Branch offices. Each bBranch offices in which trust funds or and
6 original transaction files are maintained shall be separately licensed by
7 application and payment of fifty dollars ($50.00) for the issuance and renewal
8 of each branch office license. Such branch office in accordance with the fol-
9 lowing:
10 (a) The designated broker establishing the branch office shall submit an
11 application, along with the required fee for the issuance or renewal of
12 the branch office license.
13 (b) The broker shall designate in the application a branch manager, who
14 shall be a salesperson with at least two (2) years' experience or an asso-
15 ciate broker, to regularly occupy and be responsible for the supervision
16 of the branch office. When a branch manager is a regular full-time
17 employee or is engaged in a full-time activity at a location other than
18 the place he is licensed to do business, a presumption will be made that
19 the branch manager is unable to responsibly supervise the branch; provided
20 however, the presumption may be overcome by evidence to the contrary which
21 the commission determines to be satisfactory.
22 (c) A branch manager shall not be licensed to manage more than one (1)
23 branch office at a time.
24 (d) A license issued to a branch office is valid and in effect only as
25 long as the license of the designated individual remains in active status.
26 The wall license of the branch office shall be signed by the designated
27 broker.
28 (e) No separate branch office license or manager is required for business
29 locations other than the main office unless trust funds or original trans-
30 action records are kept at the branch.
31 (f) If a separate real estate trust account is maintained for a branch
32 office, all records and related files for that account shall be maintained
33 at the branch office.
34 (g) Each branch office or business location, whether separately licensed
35 or not, shall conduct business only in the licensed name of the legal
36 entity or sole proprietor.
37 SECTION 6. That Section 54-2018, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
40 -- EFFECTIVE DATES. (1) Each new or reactivated license shall be for a period
41 of one (1) year plus the months up to and including the next birth date of the
42 licensee, not to exceed a period of two (2) years, and shall expire on a date
43 to coincide with the last day of the month of the birth date of the licensee.
44 Corporations, partnerships, limited liability companies and other entities
45 defined as "persons" in this chapter shall have established as the equivalent
46 of a birth date, the birth date of its designated broker. Licensed branch
47 offices shall have established as the equivalent of a birth date, the birth
48 date of the real estate broker establishing the branch office.
49 (2) Each license shall be renewable for a period of two (2) years by sub-
50 mitting a properly completed application, including evidence of having met the
51 commission's continuing education requirements as set forth in section
52 54-2023, Idaho Code, and all renewal fees established by this chapter or by
53 the commission, on or before 5 p.m. of the last day of the birth month of the
10
1 licensee. If mailed, the application and fee shall be postmarked by that same
2 date and time.
3 (3) If the licensee fails to submit a proper application or pay the
4 renewal fee on or before the last day of the birth month of the licensee, the
5 commission may accept a later payment, subject to such conditions as the com-
6 mission may require including, but not limited to, the assessment of a late
7 fee; provided that between the last day of the month of the licensee's birth
8 date and the date of renewal of the license, the rights of the licensee under
9 such license shall be suspended expired, and during such period of suspension
10 expiration it shall be unlawful for any licensee to do or attempt to offer to
11 do any of the acts of the kind and nature described in the definitions of real
12 estate broker or real estate salesperson in section 54-2004, Idaho Code, in
13 consideration of compensation of any kind or expectation thereof. An expired
14 license that is not renewed within one (1) year of the expiration date shall
15 be automatically terminated by the commission and may not be renewed.
16 (4) A licensee who has paid all applicable fees, who is not affiliated
17 with a designated broker and who holds a current license that is not revoked
18 or suspended may place his license on inactive status. The holder of an inac-
19 tive license During the period that his license is inactive, the licensee
20 shall not engage in the business or act in the capacity of real estate broker,
21 associate broker or salesperson. An inactive license may be reactivated as
22 provided in this chapter and the rules of the commission However, an inactive
23 licensee may receive a referral fee for any referral made during the period
24 his license was active. A licensee may reactivate an inactive license by meet-
25 ing each of the following:
26 (a) Making proper application and paying the required fee;
27 (b) Licensing under an Idaho broker as a sales associate or, if licensing
28 as a broker, establishing an office and making proper application and pay-
29 ing the required fee;
30 (c) Providing evidence of having errors or omissions insurance in the
31 manner required by section 54-2013, Idaho Code, and in accordance with the
32 rules of the commission; and
33 (d) Providing evidence of having successfully completed the continuing
34 education requirements or their equivalent, as prescribed in section
35 54-2023, Idaho Code. A continuing education course taken to make up a
36 deficiency of the requirements from the previous renewal period may be
37 applied toward the continuing education requirements for the current
38 period.
39 (5) An individual licensee, whether active or inactive, shall provide
40 written notice to the commission of any change of his personal name, address
41 of personal residence or personal telephone number. Notice shall be provided
42 within ten (10) days of the change. If the licensee has changed his personal
43 name, he shall also submit legal proof of the change and the fee for printing
44 a new license and, if an active licensee, he shall return the wall license
45 bearing his former name.
46 (6) No license shall be valid unless signed by the licensee.
47 (7) Application requests for licensure and for license changes shall
48 become effective when the properly completed forms, attachments and required
49 fees are received at and approved by the commission. Applications which are
50 incomplete or lacking proper fees shall be returned to the applicant and no
51 license shall be issued until a completed application and proper fees are
52 physically received at and actually approved by the commission.
53 SECTION 7. That Section 54-2019, Idaho Code, be, and the same is hereby
54 amended to read as follows:
11
1 54-2019. DENIAL OF LICENSE APPLICATIONS. (1) The commission may deny any
2 license application, including an application for license renewal, upon the
3 commission's determination of any of the following:
4 (1a) The applicant does not possess all of the qualifications required
5 for the license sought;
6 (2b) The applicant employed fraud, deception, misrepresentation, mis-
7 statement or omission or any unlawful means in applying for a license or
8 taking the exam;
9 (3c) Within the five-year period immediately preceding the application,
10 the applicant committed any act for which a real estate license in Idaho
11 may be revoked or suspended;
12 (d) Payment of any licensing fee by check that is returned by the banking
13 institution due to insufficient funds, unless the reason for not paying on
14 the check is the fault of the banking institution; or
15 (4e) There exist any other specific facts about the applicant that cause
16 the commission to reasonably conclude that granting the applicant's
17 request for Idaho licensure is not in the best interests of the citizens
18 of the state of Idaho.
19 (2) Where any of the facts referenced above warranting denial of the
20 application are not discovered or determined by the commission until after the
21 license has been issued, such facts may be grounds for the expiration, termi-
22 nation, suspension or revocation of the license.
23 SECTION 8. That Section 54-2020, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 54-2020. FEES. The Idaho real estate commission shall establish fees
26 which, in its discretion, are sufficient, when added to the other fees autho-
27 rized by this chapter, or any other law or rule, to raise that revenue
28 required to administer the provisions of this chapter.
29 Each person seeking any type of Idaho real estate license shall pay The
30 commission shall assess the following fees, in addition to any other fees
31 established in this chapter or by rule:
32 (1) For each year or portion thereof for which an active or inactive
33 license is issued or renewed, a license fee in an amount not to exceed one
34 hundred dollars ($100), the exact fee to be determined by administrative rule
35 of the commission. Fees so established shall remain effective from year to
36 year unless changed through the rules promulgation process prescribed in chap-
37 ter 52, title 67, Idaho Code;
38 (2) A tuition or registration fee for real estate education courses,
39 course materials and any course exam fee. These fees shall be established
40 based upon the total annual costs involved in the provision of all real estate
41 education courses, course materials and course exam fees;
42 (3) A fee in the amount of twenty-five dollars ($25.00) for late license
43 renewal;
44 (4) A fee in the amount of fifteen dollars ($15.00) for any license
45 change that necessitates the printing of a new license certificate;
46 (5) A fee in the amount allowed by law for insufficient funds checks or
47 other types of insufficient payment;
48 (6) A fee in the amount of ten dollars ($10.00) for each certified copy
49 of a licensee's education history or license history;
50 (7) A fee in the amount of fifty dollars ($50.00) for issuance or renewal
51 of a branch office license.
52 SECTION 9. That Section 54-2022, Idaho Code, be, and the same is hereby
12
1 amended to read as follows:
2 54-2022. REAL ESTATE EDUCATION -- PRELICENSE REQUIREMENTS. (1) Except as
3 provided in section 54-2015, Idaho Code, an applicant seeking a primary Idaho
4 license as a real estate salesperson, broker or associate broker shall furnish
5 satisfactory proof to the commission that the applicant has successfully com-
6 pleted current commission-approved and accredited courses of real estate study
7 as follows:
8 (a) Salesperson's license. For a salesperson's license, the applicant
9 shall complete a total of ninety (90) classroom hours, or the equivalent
10 in available correspondence hours;
11 (b) Broker's or associate broker's license. Applicants seeking a broker's
12 or associate broker's license shall, in addition to meeting the require-
13 ments for a salesperson's license, successfully complete four (4) speci-
14 fied courses in advanced real estate study, for a minimum of ninety (90)
15 additional classroom hours, or the equivalent in available correspondence
16 hours.
17 (2) Each applicant shall successfully complete all prelicense real estate
18 courses within no more than five (5) years prior to the date of the license
19 application. However, upon written request for special consideration by the
20 license applicant, the commission may waive or modify the five-year require-
21 ment at its discretion, based on the applicant's experience or additional edu-
22 cation. Each waiver request shall be submitted with a current certified
23 license history from Idaho or the applicant's other licensing jurisdiction,
24 which history shall indicate all disciplinary actions taken against the
25 applicant's license and the status and standing of such license in such
26 licensing state or jurisdiction, along with sufficient proof of education com-
27 pletion.
28 (3) To receive credit for prelicense real estate courses, a student
29 must regularly attend and complete the course, and such course must meet all
30 requirements set forth in section 54-2036, Idaho Code.
31 (4) No credit will be given for courses taken for audit.
32 (5) Credit for completion of approved prelicense education course work
33 will not be granted when the content of a course repeats that for which credit
34 has been previously received.
35 (6) Upon written request from a license applicant, the commission may
36 waive or modify one (1) or more prelicense course requirements based upon the
37 applicant's satisfactory completion of similar real estate courses in Idaho or
38 another state or jurisdiction. The request for waiver shall be accompanied by
39 an official transcript from the institution that provided the course of
40 instruction, along with a description of the subjects covered in the course
41 and the number of classroom hours involved in the instruction. "Satisfactory
42 completion" means the applicant regularly attended the course and received a
43 final grade of "C" or better.
44 SECTION 10. That Section 54-2023, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
47 of an Idaho real estate license on active status, and each Idaho licensee
48 seeking to change from inactive to active license status, shall submit satis-
49 factory proof to the commission of having successfully completed at least
50 twelve (12) classroom hours of commission-approved and certified continuing
51 education course work. Failure to provide proof of meeting the continuing edu-
52 cation requirements as set forth in this chapter constitutes an incomplete
13
1 application for a renewal of an active license or for a change in license sta-
2 tus from inactive to active, and, as such, constitutes grounds for denial of
3 those applications.
4 (1) Renewing active license. Licensees renewing on active status must
5 successfully complete the continuing education requirement on or before the
6 license expiration date, in the manner stated in section 54-2018, Idaho Code.
7 (2) Change from inactive to active. Licensees changing from inactive to
8 active status must successfully complete one (1) continuing education require-
9 ment offered during their current inactive license period.
10 (3) No duplicate credit. Credit for completion of any approved continuing
11 education course will not be granted twice.
12 (4) Excess credits. The twelve (12) hours of course work shall apply to
13 the license period in which such course work is completed; hours completed in
14 excess of those required for the license period shall not accumulate or be
15 credited for the purposes of subsequent license renewal periods.
16 (5) Challenge exams. The commission may substitute all or a portion of
17 the continuing education course work required when a licensee shows evidence
18 of passing an approved challenge exam or of completing equivalent education
19 determined by the commission to be in full compliance with such continuing
20 education requirements.
21 (6) No exam for live courses. A licensee may receive continuing education
22 course credit without having to take or pass an exam if the licensee person-
23 ally attends the entire live presentation of an approved course.
24 (7) Provisional license -- Extension of time. A three-month extension of
25 time for completing the education requirements may be obtained by submitting
26 with the renewal application, or application to activate, satisfactory evi-
27 dence showing that the applicant was unable to comply with such education
28 requirements. Such evidence may be:
29 (a) Bona fide hardship preventing completion of the reinstatement
30 requirements of an inactive license;
31 (b) Health reasons preventing attendance or completion;
32 (c) Active duty in the military service with assignment to a permanent
33 duty station outside of the state during the last twelve (12) months of a
34 license period; or
35 (d) Other compelling cause beyond the control of the applicant while
36 engaged in the real estate business.
37 If such an extension is granted, the licensee shall receive a provisional
38 license for a period of time not to exceed three (3) months. No further exten-
39 sion of time may be granted. A license issued or renewed after an extension of
40 time has been granted shall be dated effective as of the original license
41 expiration date and not the extended date. Failure to satisfy the continuing
42 education requirement within the time granted shall result in the automatic
43 inactivation of the license.
44 SECTION 11. That Section 54-2025, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-2025. CERTIFICATION REQUIREMENTS. (1) Certification required. Certifi-
47 cation must be obtained by all course providers, course instructors and for
48 all course content in order for the course to be credited toward prelicense or
49 continuing education requirements in Idaho under this chapter.
50 (2) Courses, instructors and providers monitored. The commission or its
51 representative may monitor any course for the purpose of course, instructor or
52 provider certification.
53 (3) If the commission at any time determines that an instructor, course
14
1 or provider is not meeting the requirements for continued commission approval
2 or certification, written notification detailing the deficiencies requiring
3 correction shall be made immediately to the appropriate person. The commission
4 shall take no action to withdraw the certification for thirty (30) days from
5 the date of the written notice. At the expiration of this period, if the defi-
6 ciencies have not been corrected to the commission's satisfaction, the commis-
7 sion may take action to withdraw certification. Withdrawal of certification
8 shall be governed by the Idaho administrative procedure act, chapter 52, title
9 67, Idaho Code, and the rules of the commission.
10 SECTION 12. That Section 54-2027, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 54-2027. DUTIES AND REQUIREMENTS OF ALL CERTIFIED COURSE PROVIDERS. Fail-
13 ure of a certified course provider to comply with the following duties and
14 requirements shall be grounds for the commission to withdraw or cancel the
15 provider's certification for cause.
16 (1) Discrimination prohibited. Each certified course provider shall at
17 all times be in compliance with state and federal laws, rules and regulations
18 regarding all aspects of equal opportunity and protection of civil rights. No
19 course provider shall engage in discriminatory practices, nor allow their
20 course instructor, or method of delivery to violate laws prohibiting discrimi-
21 nation. Each course provider will fully comply with any requirements of the
22 Americans with disabilities act regarding access to and delivery of its
23 courses, including the provision of accessible facilities and reasonable
24 accommodations for students.
25 (2) Open access to course offerings. Registration and attendance at all
26 certified courses offered for prelicense or continuing education credit shall
27 be open to all persons meeting normal course prerequisites. A certified course
28 provider located in or affiliated with a licensed real estate brokerage com-
29 pany may not refuse reasonable access to any licensee based on that licensee's
30 affiliation with another organization or brokerage company, or the licensee's
31 membership status in any professional organization. However, a course provider
32 is not prohibited from charging a separate and reasonable course fee to
33 nonaffiliated or nonmember licensees.
34 (3) Disclosure of fees. All fees charged to a student by a course pro-
35 vider shall be specified separately in writing. If additional fees are charged
36 for supplies, materials or books required for course work, such fees shall be
37 itemized by the provider and, upon payment of such fees, the supplies, mate-
38 rials or books shall become the property of the student. All fees and the man-
39 ner in which they are to be paid shall be stated in a student contract, in a
40 form approved by the commission. The student contract shall expressly include
41 the provider's policy regarding the return of fees in the instance where the
42 student is dismissed or voluntarily withdraws from the course.
43 (4) Facilities and supportive personnel. The provider shall provide the
44 facilities and all supportive qualified personnel or approved proctors neces-
45 sary to adequately implement its real estate program.
46 (45) Student records and other requirements. Each Idaho certified course
47 provider shall comply with the following requirements:
48 (a) Records. Maintain for each individual student a complete, accurate
49 and detailed record which shall include the total number of hours of
50 instruction undertaken and satisfactorily or unsatisfactorily completed in
51 the area of study;
52 (b) Course completion lists. Within five (5) working days after conclu-
53 sion of each course of instruction, the provider shall submit to the coun-
15
1 cil or commission an alphabetical list which shall include the names,
2 addresses and social security numbers of the students completing the
3 course of instruction, the name of the course, the name of the instructor,
4 the number of hours included in the course, the date of the course and the
5 location. The list shall be certified by the instructor from whom the stu-
6 dents received instruction and an authorized representative of the pro-
7 vider;
8 (c) Grades. The provider will provide written notification to students
9 who successfully or unsuccessfully complete a course within thirty (30)
10 days of the course completion date;
11 (d) Evaluations. Each provider shall submit acceptable student evalua-
12 tions for each course and instructor, which must be on commission-approved
13 forms. The use of the commission evaluation form is recommended;
14 (e) Course schedules. Each provider shall submit schedules of courses and
15 instructors as requested by the commission and submit changes promptly as
16 they occur. Whenever there is a change in a course including, but not lim-
17 ited to, a change in curriculum, course length or instructor, the provider
18 shall promptly notify the commission in writing of the change.
19 (6) Posting and recording fees. The commission may require that course
20 providers pay to the commission a nonrefundable posting and recording fee to
21 defray normal expenses incurred in maintaining the certificate program. The
22 fee amount shall be established by the commission by motion.
23 (57) Advertising restrictions:
24 (a) Providers may advertise that they are currently certified by the com-
25 mission, if current certification has been approved, but no such advertis-
26 ing may state or imply that the provider is an agency of the commission or
27 the council;
28 (b) No course provider shall provide any information to the public or to
29 prospective students which is misleading in nature. Information is mis-
30 leading when, taken as a whole, there is distinct probability that it will
31 deceive the persons whom it is intended to influence.
32 (68) Changes in certification. Certification shall be granted to the par-
33 ticular provider for the specific ownership, provider location, and named
34 individual in charge as designated in the application for certification. Any
35 changes in ownership, provider location, or provider name, or named individual
36 in charge must be submitted for approval to the commission, at least one (1)
37 month in advance of the effective date of the proposed changes.
38 SECTION 13. That Section 54-2036, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 54-2036. CERTIFICATION OF COURSES AND COURSE CONTENT. Every real estate
41 course offered for prelicense or continuing education credit for an Idaho real
42 estate license shall first be certified and accredited by the Idaho real
43 estate commission.
44 (1) An application for course certification must be submitted in the form
45 and manner required by the commission, with proper fees, at least two (2)
46 months prior to contemplated date of the first course offering.
47 (2) Minimum requirements for course certification:
48 (a) Each course must be certified individually, offered only through a
49 provider certified or approved in Idaho, and taught by an instructor cer-
50 tified or approved in Idaho in accordance with this chapter.
51 (b) Each prelicense course must contain at least twenty (20) hours of
52 classroom instruction.
53 (c) Exam time shall not be included as approved classroom hours of
16
1 instruction.
2 (d) A course hour is defined as a period of at least fifty (50) minutes
3 of actual instruction.
4 (e) Distance learning and alternative course delivery. The length of a
5 certified distance learning or other alternative course shall be based
6 upon the same number of hours which would be awarded in an equivalent
7 classroom course, and must include a commission-approved, proctored final
8 exam. The commission may, by motion, adopt national standards and require
9 national certification for the design and delivery of noncommission-
10 produced distance learning courses.
11 (f) Each prelicense course must include a proctored, commission-approved
12 final exam requiring a minimum passing score of seventy percent (70%).
13 (i) Exam retake policy. Each certified course provider, may, at its
14 option, allow students who fail the initial course exam one (1)
15 opportunity to retake the approved course exam within the following
16 time periods:
17 1. Prelicense course exam retakes must occur within one (1)
18 month of the original course exam;
19 2. Continuing education course challenge exam retakes must
20 occur within that course's certification period;
21 (ii) If a student fails the retake exam for any prelicense or con-
22 tinuing education course, the student must repeat the entire course
23 and pass the final exam to receive credit.
24 (g) Challenge exams. A student shall not earn credit for any prelicense
25 course by challenging and passing the course exam without otherwise com-
26 pleting all course requirements. Credit for continuing education courses
27 may be earned by challenge exam only as allowed in section 54-2023(5),
28 Idaho Code.
29 (3) Approved topics. The commission shall establish specific, approved
30 topics for course content as it deems appropriate to current real estate prac-
31 tices and laws.
32 SECTION 14. That Section 54-2039, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 54-2039. BROKER AND BRANCH OFFICE MANAGER ABSENCES AND CHANGES. Each real
35 estate brokerage company must have a legally qualified individual acting as
36 designated broker at all times. Each branch office licensed under section
37 54-2016(4), Idaho Code, shall have, at all times, a legally qualified individ-
38 ual acting as branch office manager.
39 (1) Broker or branch manager absent for more than twenty-one days. A des-
40 ignated broker who is absent from his main office for more than twenty-one
41 (21) calendar consecutive days shall appoint a qualified designated broker of
42 another office, or an associate broker who is licensed and associated with the
43 absent broker, to manage, supervise and oversee the regular office operations
44 of the company in his absence. A branch office manager who is absent for more
45 than twenty-one (21) consecutive days from a branch office in which trust
46 funds and original transaction files are maintained shall appoint a qualified
47 individual to manage, supervise and oversee the regular office operations of
48 the company in his absence. The appointee shall conduct all supervisory activ-
49 ities normally required of the designated broker or branch manager. Except in
50 the event of an emergency, the designated broker or branch manager shall
51 notify the commission in writing of the name of the appointee prior to the
52 broker or manager leaving the office for an extended period of more than
53 twenty-one (21) consecutive days.
17
1 (2) Broker or branch manager absent for more than sixty days. A desig-
2 nated broker, or manager of a branch office in which trust funds and original
3 transaction files are maintained, shall not be absent from his main office for
4 a period longer than sixty (60) consecutive days. In the case of such extended
5 absence, another qualified individual shall be designated to act as broker or
6 branch office manager. If a designated broker is absent from his main office
7 for a period longer than sixty (60) consecutive days, and no new broker is
8 designated to act as broker for the brokerage company, the commission shall
9 place on inactive status the licenses of the absent broker and of all licen-
10 sees associated with him, and all brokerage listing agreements and all buyer
11 brokerage agreements shall be terminated.
12 (3) Change of broker in business entity. A license issued to a legal
13 business entity, as defined in this chapter, is effective only as long as the
14 individual designated broker's license is in active status and in effect. If
15 the individual so designated has a license refused, revoked, suspended or
16 otherwise made inactive by the commission, or if the individual designated
17 broker voluntarily surrenders the individual license or ceases to be connected
18 with the entity in the manner required in this chapter, the business entity
19 shall have ten (10) business days in which to designate another qualified
20 individual as designated broker before the entity's license is terminated, and
21 the licenses of all associated licensees are made inactive.
22 (4) Effective date of changes. No change in designated broker shall be
23 effective until written notice is received and approved by the commission, in
24 the form required.
25 (5) Failure to comply -- Original broker to remain responsible except in
26 the case of revocation. Where a licensed brokerage company fails to comply
27 with this section and its office is closed, or during any period where the
28 designated broker has left the brokerage company and no new broker has been
29 designated to act for the company, the original designated broker shall remain
30 responsible for trust account funds, pending transactions and records in the
31 manner described in sections 54-2041 through 54-2049, Idaho Code. However, if
32 the license of the original designated broker of the brokerage company is
33 revoked, the license of that brokerage company shall be made inactive and its
34 office closed until the company designates another qualified individual to act
35 as broker.
36 SECTION 15. That Section 54-2040, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 54-2040. MAIN OFFICE OR BUSINESS LOCATION -- DISPLAY OF LICENSE. (1) Def-
39 inite location required. Each individual licensed as a designated real estate
40 broker under the provisions of this chapter shall be required to have and
41 maintain a definite, physical place of business, which place shall serve as
42 his main office for the transaction of business and be regarded for the intent
43 and purpose of this chapter as his principal place of business. Notice in
44 writing shall be given to the commission of any change by the broker of the
45 business name, or business location, or mailing address whereupon a new
46 license shall be issued reflecting the changed business name or address and
47 each wall license requiring a change shall be returned to the commission along
48 with the fee for printing and issuance of a new license. A change of business
49 name or location without notification to the commission and issuance of a new
50 license shall automatically cancel inactivate the license heretofore previ-
51 ously issued. The broker shall also notify the commission in writing of any
52 change in the business mailing address telephone number.
53 (2) Broker for more than one business. A qualified individual may be the
18
1 designated broker for more than one (1) licensed real estate business entity
2 only if all licensed businesses operate their main offices at the same physi-
3 cal location.
4 (3) Brokers sharing same business location. More than one (1) individu-
5 ally licensed broker may operate an office at the same address only if each
6 broker operates under a business name which clearly identifies the broker as
7 an individual within the group of brokers, and each broker shall maintain his
8 or her records and trust accounts separate from all other brokers.
9 (4) Business name and display of licenses. A broker shall not conduct
10 business under any name other than the one in which the license is issued.
11 Current licenses of the broker and all associates licensed with the broker
12 shall be prominently displayed or available for public inspection in the
13 office designated with the commission as the broker's main office location. No
14 other location may be used as a main office location until proper notice is
15 acknowledged by the commission.
16 (5) Lending license prohibited. A broker shall not lend or permit the use
17 of the broker's license, whether for compensation or not, to enable anyone
18 licensed or unlicensed to, in fact, establish or carry on a business for which
19 a real estate broker's license is required, wherein the broker does not activ-
20 ely manage and have full control. In like manner, a salesperson shall not use
21 another person's broker's license, whether for compensation or not, to estab-
22 lish or carry on a business for which a broker's license is required, nor to
23 manage and control the office, except as allowed by sections 54-2016(4), and
24 54-2039(1), Idaho Code.
25 (6) Upon surrender of his real estate license or upon notice of suspen-
26 sion or revocation of such license, a licensee shall immediately forward the
27 wall license to the commission. The license of any sales associate licensed
28 under and associated with a broker whose license is to be surrendered, sus-
29 pended or revoked shall be returned to the commission on or before the effec-
30 tive date of the notice or order surrendering, suspending or revoking the
31 broker's license.
32 SECTION 16. That Section 54-2041, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 54-2041. TRUST ACCOUNTS AND ENTRUSTED PROPERTY. (1) A licensed Idaho real
35 estate broker shall be responsible for all moneys or property entrusted to
36 that broker or to any licensee representing the broker.
37 (2) Immediately upon receipt, the broker shall place entrusted moneys in
38 a neutral, qualified trust fund account in Idaho, and shall properly care for
39 any entrusted property.
40 (3) Entrusted moneys shall not be commingled with moneys of the broker,
41 firm or agent, except for that minimum amount that may be required to open and
42 maintain the trust account or as otherwise allowed by subsection (7) of sec-
43 tion 54-2042, Idaho Code.
44 (4) The real estate broker shall remain fully responsible and accountable
45 for all entrusted funds moneys and property until a full accounting has been
46 given to the parties involved.
47 SECTION 17. That Section 54-2042, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 54-2042. CREATION OF NONINTEREST-BEARING TRUST ACCOUNTS -- REQUIREMENTS.
50 A broker may establish one (1) or more real estate trust accounts but each
51 account must meet all requirements of this chapter, including the following:
19
1 (1) Each trust account must be established at an approved depository,
2 which must be located in the state of Idaho, and must be noninterest-bearing,
3 except as allowed in section 54-2043, Idaho Code, or as otherwise may be pro-
4 vided by law. Approved depositories are state or federally chartered banks
5 and trust companies, state or federally chartered savings and loan associa-
6 tions, properly licensed title insurance companies in Idaho, or an actively
7 licensed attorney at law in Idaho.
8 (2) Each account must be identified by the term "real estate trust
9 account," on checks, deposit slips, and with the depository.
10 (3) Each trust account must be established and maintained under the
11 licensed business name of the broker, and shall be under the full control of
12 the broker.
13 (4) Each broker trust account must have a separate and complete set of
14 records, which must consist of a monthly accounting, deposits, charges, and
15 withdrawals or checks, even if the moneys are on deposit with a title company,
16 attorney or other approved depository. The broker is responsible for ensuring
17 that these separate account records are provided by the depository.
18 (5) Funds deposited in a real estate trust account must be subject to
19 withdrawal on demand at the order or direction of the broker at all times,
20 even if deposited with a title company or other approved depository.
21 (6) A commission-approved form giving notice of opening a trust account
22 and giving authorization for the commission to inspect the account must be
23 completed for each trust account, signed by the broker and an officer of the
24 bank or depository and returned to the commission.
25 (7) No deposits to the trust account shall be made of funds that belong
26 to the broker or real estate firm, except that the broker may deposit broker
27 or firm funds for the purpose of opening and maintaining the account and for
28 the payment of anticipated bank service charges for the trust account. In no
29 event shall the balance of broker or firm funds in the account exceed three
30 hundred dollars ($300). Maintenance funds shall not be disbursed for any pur-
31 pose other than to cover bank charges charged directly to the trust account by
32 the bank.
33 (8) An entity not specified as an approved escrow depository in subsec-
34 tion (1) of this section, may be accepted and approved by the commission as an
35 escrow depository upon disclosure of the following:
36 (a) The details of the entity's financial structure;
37 (b) The amount and terms of errors and omissions insurance and any bond-
38 ing;
39 (c) A copy of the entity's last audit and financial statement;
40 (d) A copy of any license or certificate issued to the entity; and
41 (e) Any other information that may help the commission make its determi-
42 nation.
43 SECTION 18. That Section 54-2046, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 54-2046. TRUST ACCOUNT DISBURSEMENTS. The broker who holds entrusted
46 funds or like payments in lieu of cash received in a regulated real estate
47 transaction is fully responsible for all such funds until a full accounting
48 has been made to the parties involved. All cash or like payments in lieu of
49 cash must be disbursed from the real estate trust account only in accordance
50 with this section. Failure to comply with this section is a violation of
51 license law and will subject the broker to discipline.
52 (1) Written authorization required. No disbursements shall be made with-
53 out a written, signed authorization by the parties to the transaction or an
20
1 order of the court. Written and signed instructions from parties to the trans-
2 action may be in the purchase and sale agreement or in a separate document.
3 (2) Disbursements in advance of closing. No disbursements shall be made
4 in advance of closing or before the happening of a condition set forth in the
5 purchase and sale agreement or other agreement in a regulated real estate
6 transaction to the seller, closing agent or any other person without the
7 required written and signed authorization.
8 (3) Disbursements to escrow agent. When set forth in the purchase and
9 sale agreement that funds are to be disbursed to the person or company named
10 as the escrow closing agent or agency, such disbursement shall be made to the
11 person, company, agent or agency on or before the day of closing, and a
12 receipt for such disbursement shall be retained in the broker's transaction
13 file.
14 (4) Withdrawal of broker's commission. No disbursement of any portion of
15 the broker's commission shall take place without prior written, signed autho-
16 rization from the buyer and seller or until copies of the closing statements,
17 signed by the buyer and seller, have been delivered to the broker and until
18 the buyer or seller has been paid the amount due as determined by the closing
19 statement.
20 (45) Provision for forfeited earnest money. The purchase and sale agree-
21 ment must include a provision for division of moneys taken as earnest money
22 when the transaction is not closed and such moneys are retained by any person
23 as forfeited payment.
24 SECTION 19. That Section 54-2050, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-2050. BROKERAGE REPRESENTATION AGREEMENTS -- REQUIRED ELEMENTS. All
27 real estate brokerage representation agreements, whether with a buyer or
28 seller, must be in writing in the manner required by section 54-2085, Idaho
29 Code, and must contain the following contract provisions:
30 (1) Seller representation agreements. Each seller representation agree-
31 ment, whether exclusive or nonexclusive, must contain the following provi-
32 sions:
33 (a) Conspicuous and definite beginning and expiration dates;
34 (b) A legally enforceable description of the property;
35 (c) Price and terms;
36 (d) All fees or commissions; and
37 (e) The signature of the owner of the real estate or the owner's legal,
38 appointed and duly qualified representative, and the date of such signa-
39 ture.
40 (2) Buyer representation agreements. Each buyer representation agreement,
41 whether exclusive or nonexclusive, must contain the following provisions:
42 (a) Conspicuous and definite beginning and expiration dates;
43 (b) All financial obligations of the buyer or prospective buyer, if any,
44 including, but not limited to, fees or commissions;
45 (c) The manner in which any fee or commission will be paid to the broker;
46 and
47 (d) Appropriate signatures and their dates.
48 (3) Prohibited provisions and exceptions -- Automatic renewal clauses. No
49 buyer or seller representation agreement shall contain a provision requiring
50 the party signing the agreement to notify the broker of the party's intention
51 to cancel the agreement after the definite expiration date, unless the repre-
52 sentation agreement states that it is completely nonexclusive and it contains
53 no financial obligation, fee or commission due from the party signing the
21
1 agreement.
2 (4) Copies required. A broker or salesperson who obtains a written bro-
3 kerage representation agreement of any kind shall, at the time of securing
4 such agreement, give the person or persons signing such agreement, a legible,
5 signed, true and correct copy thereof. To the extent the parties have agreed
6 in writing, cCopies may be that are electronically generated or transmitted,
7 faxed or delivered in another method as long as the representation agreement
8 specifically allows for such transmission and the parties to the agreement
9 agree in writing to accept such copies or documents as shall be deemed true
10 and correct.
11 (5) Electronically generated agreements. To the extent the parties have
12 agreed in writing, bBrokerage representation agreements with a buyer or seller
13 may be that are electronically generated or transmitted, faxed or delivered in
14 another method as long as the representation agreement specifically allows for
15 such transmission and the parties to the representation agreement agree in
16 writing to accept such copies or documents as shall be deemed true and correct
17 and enforceable as originals.
18 SECTION 20. That Section 54-2052, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 54-2052. ELECTRONICALLY GENERATED AGREEMENTS. To the extent the parties
21 to the transaction have agreed in writing oOffers to purchase, counteroffers
22 and acceptances may be electronically generated or transmitted, faxed or
23 delivered in another method only if the representation agreement specifically
24 allows for such transmission and the parties to the representation agreement
25 agree in writing to accept such copies or documents as shall be deemed true
26 and correct and enforceable as originals.
27 SECTION 21. That Section 54-2056, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 54-2056. TERMINATING LICENSE BUSINESS RELATIONSHIPS. (1) Sales associate
30 terminating license with broker. Any sales associate who terminates his asso-
31 ciation with a broker and licenses with another broker shall immediately
32 return his wall license to the commission, along with the completed forms and
33 fees necessary for relicensing. If the sales associate is unable to obtain his
34 wall license from the broker, the sales associate shall send written notice of
35 his termination, by certified mail, return receipt requested, to the broker,
36 and shall deliver a copy of such notice to the commission. Upon receipt of
37 such notice from the sales associate, the broker shall immediately return the
38 sales associate's wall license to the commission.
39 (2) Broker terminating sales associate. Any broker who terminates the
40 association of a sales associate shall return the sales associate's wall
41 license along with a completed termination form to the commission.
42 (3) Any broker who terminates the association of a sales associate for
43 the violation of any of the provisions of sections 54-2059 through 54-2065,
44 Idaho Code, shall promptly notify the commission, in writing, of the termina-
45 tion and the facts giving rise to the termination.
46 (4) Closing a branch office. A written notice shall be sent to the com-
47 mission office along with the branch office license and the wall licenses of
48 all licensees licensed in the branch office immediately upon closing the
49 branch office.
50 (45) Property of the broker. Upon termination of the business relation-
51 ship as a sales associate licensed under a broker, the sales associate shall
22
1 immediately turn over to the broker all listing information and listing con-
2 tracts, keys, purchase and sale agreements and similar contracts, buyer bro-
3 kerage information and contracts, and other property belonging to the broker.
4 A sales associate shall not engage in any practice or conduct, directly or
5 indirectly, which encourages, entices or induces clients of the broker to ter-
6 minate any legal business relationship with the broker unless he first obtains
7 written permission of the broker.
8 (56) Location of trust accounts and file records. When an actively
9 licensed broker changes to a license status other than that of a designated
10 broker, that individual must notify the commission in writing of the location
11 of all trust accounts and transaction file records which the broker was
12 responsible for during the term of licensure as a designated broker. These
13 records shall be available to the commission for three (3) years following the
14 year in which each transaction was closed.
15 (67) Terminating relationships between a broker and a sole proprietorship
16 owned by a person other than the broker. When a broker for a sole proprietor-
17 ship, owned by a person other than the broker, terminates an association with
18 the owner, all records and trust account funds shall become the property of,
19 and be maintained and disbursed by, the terminating broker in accordance with
20 this chapter and applicable rules promulgated thereunder. The terminating bro-
21 ker shall deliver, upon request made in writing by the clients and the new
22 broker of that sole proprietorship, such records and trust account funds per-
23 taining to that client, to the new broker who shall thereafter have the
24 responsibility for preservation and disbursement, in accordance with this
25 chapter and applicable rules promulgated thereunder.
26 SECTION 22. That Section 54-2058, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 54-2058. AUTHORITY TO INVESTIGATE AND DISCIPLINE. (1) General authority
29 to investigate. The commission may investigate the action of any person
30 engaged in the business or acting in the capacity of real estate broker or
31 salesperson within the state of Idaho. The commission may initiate an investi-
32 gation at its own discretion or upon receipt of a written complaint from any-
33 one who claims to have been injured or defrauded as a result of such action.
34 A person is acting "within the state of Idaho" if that person is dealing
35 with any interest in real property or a business opportunity involving an
36 interest in real property, which is situated in this state, or is conducting
37 or attempting to conduct or solicit real estate business with residents of the
38 state of Idaho.
39 (2) Unlicensed persons. The commission also may investigate and file a
40 formal administrative complaint under this chapter against any person believed
41 to have acted as a real estate broker or salesperson without a license in
42 violation of section 54-2002, Idaho Code.
43 (3) Audits. The commission or its duly authorized representative is
44 vested with the authority to conduct periodic inspections, surveys and audits
45 of the transaction records and real estate trust accounts of all Idaho
46 licensed designated brokers. Any transaction records or real estate trust
47 account records located outside the state of Idaho shall promptly be made
48 available to the commission upon request at the licensee's own cost and at the
49 location or in the manner requested by the commission. If the analysis of a
50 broker's real estate trust account indicates a deficiency or any irregularity
51 which cannot be resolved between the commission and the broker, the commission
52 may order a complete audit of the trust account by a certified public accoun-
53 tant at the broker's expense.
23
1 (4) The commission or its staff also has the authority to investigate the
2 action of any Idaho licensee. The licensee or broker shall answer all reason-
3 able investigative questions of the commission or its staff, and must make
4 available, promptly upon request, any and all records to the commission at the
5 licensee's own cost and at the location or in the manner requested by the com-
6 mission.
7 SECTION 23. That Section 54-2061, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 54-2061. ADDITIONAL GROUNDS FOR DISCIPLINARY ACTION -- COURT ACTIONS --
10 LICENSEE TO REPORT TO COMMISSION. (1) The commission may also take disciplin-
11 ary action against a licensee including, but not limited to, suspension or
12 revocation of a license, where, in a court of competent jurisdiction, the
13 licensee:
14 (a) Has been convicted of a felony, or has been convicted of a misde-
15 meanor involving fraud, misrepresentation, or dishonest or dishonorable
16 dealing or which otherwise demonstrates the licensee's lack of trustwor-
17 thiness to engage in the real estate business;
18 (b) Has been declared to lack capacity or to be incompetent or under an
19 infirmity, for the duration of such declaration only;
20 (c) Has a judgment entered against the licensee in a civil action upon
21 grounds of fraud, misrepresentation, deceit or gross negligence with ref-
22 erence to a real estate-related transaction.
23 (2) The court's record of conviction, order determining legal competency,
24 or the order entering judgment in a civil case, or certified copies thereof,
25 shall be prima facie evidence of a conviction, or the court's action.
26 (3) A licensee who is convicted, declared legally incompetent, or who has
27 a judgment entered against him in a civil action as described in subsection
28 (1) of this section, shall, within twenty (20) days of such conviction, decla-
29 ration or judgment, forward to the commission a copy of the legal document
30 evidencing the same.
31 SECTION 24. That Section 54-2062, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 54-2062. ADDITIONAL GROUNDS FOR DISCIPLINARY ACTION -- OTHER ADMINISTRA-
34 TIVE ACTIONS -- LICENSEE TO REPORT TO COMMISSION. (1) The commission may also
35 take any disciplinary action, including, but not limited to, suspension or
36 revocation of a license where the licensee:
37 (1a) Has an order or determination of debarment, suspension, or any limi-
38 tation on participation in government loan programs issued against the
39 licensee for misconduct; or
40 (2b) Has a license, issued by another jurisdiction, suspended or revoked
41 for a disciplinary violation involving fraud, misrepresentation, or dis-
42 honest or dishonorable dealings. A certified copy of the order of the
43 administrative agency in the other jurisdiction shall be prima facie evi-
44 dence of the suspension or revocation.
45 (2) A licensee against whom a final administrative action has been taken,
46 as described in subsection (1) of this section, shall, within twenty (20) days
47 of such action, forward to the commission a copy of the legal document evi-
48 dencing the same.
49 SECTION 25. That Section 54-2085, Idaho Code, be, and the same is hereby
50 amended to read as follows:
24
1 54-2085. DISCLOSURE AND WRITING REQUIREMENTS -- AGENCY DISCLOSURE BRO-
2 CHURE AND REPRESENTATION CONFIRMATION. (1) A licensee shall give to a prospec-
3 tive buyer or seller at the first substantial business contact the agency dis-
4 closure brochure established adopted or approved by the Idaho real estate com-
5 mission. The commission by rule motion shall establish the form and contents
6 of the brochure in accordance with the provisions of this act chapter. Each
7 brokerage shall keep an initialed a signed and dated receipt from the agency
8 disclosure brochure as the record of a buyer or seller's receipt of the agency
9 disclosure brochure.
10 (2) The agency disclosure brochure shall list the types of representation
11 available to a buyer or seller in a regulated real estate transaction, the
12 legal duties and obligations owed to the buyer or seller in each type of rep-
13 resentation and a conspicuous notice that no representation will exist absent
14 a written agreement between the buyer or seller and the brokerage.
15 (3) A brokerage's relationship with a buyer and seller as an agent,
16 nonagent, or limited dual agent must be determined and all necessary agree-
17 ments executed no later than the preparation of a purchase and sale agreement.
18 A brokerage must disclose its relationship to both buyer and seller in any
19 transaction no later than the preparation or presentation of a purchase and
20 sale agreement.
21 (4) In addition, a purchase and sale agreement or other document drafted
22 in connection with a real estate transaction shall contain the following con-
23 firmation of the relationship, whether it involved representation or not,
24 between the buyer, seller and licensees involved:
25 REPRESENTATION CONFIRMATION
26 In this transaction, the brokerage(s) involved had the following
27 relationship(s) with the BUYER ("agent" or "nonagent" or "limited
28 dual agent"):
29 Listing broker acted as a(n) ................ for the buyer.
30 Selling broker acted as a(n) ................ for the buyer.
31 In this transaction, the brokerage(s) involved had the following
32 relationship(s) with the SELLER ("agent" or "nonagent" or "limited
33 dual agent"):
34 Listing broker acted as a(n) ................ for the seller.
35 Selling broker acted as a(n) ................ for the seller.
36 Each party signing this document confirms that he or she has
37 received, read and understood the Agency Disclosure Brochure and has
38 elected the relationship confirmed above. In addition, each party
39 confirms that the broker's agency office policy was made available
40 for inspection and review. EACH PARTY UNDERSTANDS THAT HE OR SHE IS A
41 "CUSTOMER" AND IS NOT REPRESENTED BY A BROKER UNLESS THERE IS A
42 SIGNED WRITTEN AGREEMENT FOR AGENCY REPRESENTATION.
43 (5) The failure of a licensee to timely give a buyer or seller the agency
44 disclosure brochure or the failure of a licensee to properly and timely obtain
45 any written agreement or confirmation required by this act shall be a viola-
46 tion of the Idaho real estate license law and may subject the licensee to dis-
47 ciplinary action according to the provisions of sections 54-2058 through
48 54-2078, Idaho Code.
49 (6) Neither the commission brochure nor the representation confirmation
50 shall create a brokerage relationship. A separate, signed, written agreement
51 is required for that purpose.
52 SECTION 26. That Section 54-2087, Idaho Code, be, and the same is hereby
25
1 amended to read as follows:
2 54-2087. DUTIES TO A CLIENT. If a buyer or seller enters into a written
3 contract for representation in a regulated real estate transaction, that buyer
4 or seller becomes a client to whom the brokerage and its licensees owe the
5 following agency duties and obligations:
6 (1) To perform the terms of the written agreement with the client;
7 (2) To exercise reasonable skill and care;
8 (3) To promote the best interests of the client in good faith, honesty
9 and fair dealing including, but not limited to:
10 (a) Disclosing to the client all adverse material facts actually known or
11 which reasonably should have been known by the licensee;
12 (b) Seeking a buyer to purchase the seller's property at a price, and
13 under terms and conditions acceptable to the seller and assisting in the
14 negotiation therefor; or
15 (c) Seeking a property for purchase at a price and under terms and condi-
16 tions acceptable to the buyer and assisting in the negotiation therefor;
17 (d) For the benefit of a client/buyer: conducting a reasonable investiga-
18 tion of the property and material representations about the property made
19 by the seller or seller's agent, or when appropriate, advising the client
20 to obtain professional inspections of the property or to seek appropriate
21 tax, legal and other professional advice or counsel;
22 (e) For the benefit of a client/seller: requesting reasonable proof of a
23 prospective buyer's financial ability to purchase the real property which
24 is the subject matter of the transaction. This duty may be satisfied by
25 any appropriate method suitable to the transaction or, when deemed neces-
26 sary by the real estate licensee, by advising the client to consult with
27 an accountant, lawyer, or other professional as dictated by the transac-
28 tion.
29 (4) To maintain the confidentiality of specific client information as
30 defined by and to the extent required in this act.
31 (5) To properly account for moneys or property placed in the care and
32 responsibility of the brokerage; and
33 (5) To maintain the confidentiality of specific client information as
34 defined by and to the extent required in this chapter, and as follows:
35 (a) The duty to a client continues beyond the termination of representa-
36 tion only so long as the information continues to be confidential client
37 information as defined in this chapter, and only so long as the informa-
38 tion does not become generally known in the marketing community from a
39 source other than the brokerage or its affiliated licensees;
40 (b) A licensee who personally has gained confidential client information
41 about a buyer or seller while associated with one (1) broker and who later
42 affiliates with a different broker remains obligated to maintain the cli-
43 ent confidentiality as required by this chapter;
44 (c) If a brokerage represents a buyer or seller whose interests conflict
45 with those of a former client, the brokerage shall inform the second cli-
46 ent of the broker's prior representation of the former client and that
47 confidential client information obtained during the first representation
48 cannot be given to the second client. Nothing in this section shall pre-
49 vent the brokerage from asking the former client for permission to release
50 such information;
51 (d) Nothing in this section is intended to create a privileged communica-
52 tion between any client and any brokerage or licensee for purposes of
53 civil, criminal or administrative legal proceedings.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Goedde
Seconded by Brandt
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1051
1 AMENDMENT TO SECTION 25
2 On page 24 of the printed bill, in line 7, delete "receipt from the
3 agency"; and in line 8, delete "disclosure brochure as the".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1051, As Amended
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2004, IDAHO
3 CODE, TO REVISE DEFINITIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
4 SECTION 54-2012, IDAHO CODE, TO REVISE MINIMUM REQUIREMENTS FOR INDIVIDUAL
5 PRIMARY IDAHO REAL ESTATE LICENSES; AMENDING SECTION 54-2014, IDAHO CODE,
6 TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 54-2015, IDAHO CODE, TO
7 REVISE THE PROCEDURE FOR WAIVER REQUESTS, TO PROVIDE CORRECT TERMINOLOGY
8 AND TO PROVIDE A CORRECT CODE CITATION; AMENDING SECTION 54-2016, IDAHO
9 CODE, TO REVISE REQUIREMENTS FOR PRIMARY IDAHO REAL ESTATE LICENSES FOR
10 LEGAL BUSINESS ENTITIES, SOLE PROPRIETORSHIPS AND BRANCH OFFICES AND TO
11 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 54-2018, IDAHO CODE, TO
12 DELETE REFERENCE TO POSTMARK, TO PROVIDE THAT CERTAIN EXPIRED LICENSES
13 SHALL BE AUTOMATICALLY TERMINATED AND MAY NOT BE RENEWED, TO PROVIDE FOR
14 THE PLACEMENT OF LICENSES ON INACTIVE STATUS, TO PROVIDE FOR THE RECEIPT
15 BY INACTIVE LICENSEES OF CERTAIN REFERRAL FEES, TO PROVIDE FOR THE
16 REACTIVATION OF INACTIVE LICENSES, TO PROVIDE FOR NOTICE BY THE LICENSEE
17 TO THE COMMISSION OF CERTAIN CHANGES, TO PROVIDE THAT ONLY LICENSES SIGNED
18 BY LICENSEES SHALL BE VALID, TO PROVIDE FOR THE EFFECTIVE DATE FOR APPLI-
19 CATION REQUESTS FOR LICENSURE AND LICENSE CHANGES AND TO PROVIDE CORRECT
20 TERMINOLOGY; AMENDING SECTION 54-2019, IDAHO CODE, TO REVISE GROUNDS FOR
21 DENIAL OR NONRENEWAL OF LICENSE AND TO PROVIDE THAT THE DISCOVERY OF CER-
22 TAIN FACTS AFTER A LICENSE HAS BEEN ISSUED MAY BE GROUNDS FOR THE EXPIRA-
23 TION, TERMINATION, SUSPENSION OR REVOCATION OF A LICENSE; AMENDING SECTION
24 54-2020, IDAHO CODE, TO PROVIDE THAT THE COMMISSION SHALL ASSESS FEES;
25 AMENDING SECTION 54-2022, IDAHO CODE, TO PROVIDE THAT THE COMMISSION MAY
26 WAIVE OR MODIFY ONE OR MORE PRELICENSE COURSE REQUIREMENTS UNDER CERTAIN
27 CONDITIONS; AMENDING SECTION 54-2023, IDAHO CODE, TO REVISE CONTINUING
28 EDUCATION REQUIREMENTS; AMENDING SECTION 54-2025, IDAHO CODE, TO REVISE
29 CERTIFICATION REQUIREMENTS; AMENDING SECTION 54-2027, IDAHO CODE, TO PRO-
30 VIDE FOR THE DISCLOSURE OF FEES BY COURSE PROVIDERS, TO PROVIDE FOR NOTICE
31 TO THE COMMISSION OF COURSE CHANGES, TO PROVIDE THAT THE COMMISSION MAY
32 REQUIRE COURSE PROVIDERS TO PAY A NONREFUNDABLE POSTING AND RECORDING FEE;
33 AMENDING SECTION 54-2036, IDAHO CODE, TO PROVIDE THAT THE COMMISSION MAY
34 ADOPT NATIONAL STANDARDS AND REQUIRE NATIONAL CERTIFICATION FOR CERTAIN
35 COURSES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 54-2039,
36 IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 54-2040,
37 IDAHO CODE, TO PROVIDE THAT WALL LICENSES REQUIRING CHANGES SHALL BE
38 RETURNED TO THE COMMISSION WITH A FEE FOR PRINTING AND ISSUANCE OF A NEW
39 LICENSE, TO PROVIDE FOR THE RETURN TO THE COMMISSION OF CERTAIN WALL
40 LICENSES, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE A TECHNICAL CORREC-
41 TION; AMENDING SECTION 54-2041, IDAHO CODE, TO PROHIBIT THE COMMINGLING OF
42 ENTRUSTED MONEYS WITH CERTAIN OTHER MONEYS AND TO PROVIDE CORRECT TERMI-
43 NOLOGY; AMENDING SECTION 54-2042, IDAHO CODE, TO PROVIDE THAT THE COMMIS-
44 SION MAY APPROVE CERTAIN ENTITIES AS ESCROW DEPOSITORIES UPON DISCLOSURE
45 OF SPECIFIED INFORMATION; AMENDING SECTION 54-2046, IDAHO CODE, TO PROVIDE
46 FOR THE DISBURSEMENT OF FUNDS TO ESCROW AGENTS; AMENDING SECTION 54-2050,
2
1 IDAHO CODE, TO PROVIDE THAT PARTIES MAY AGREE IN WRITING THAT CERTAIN COP-
2 IES AND ELECTRONICALLY GENERATED AGREEMENTS SHALL BE ENFORCEABLE AS ORIGI-
3 NALS; AMENDING SECTION 54-2052, IDAHO CODE, TO PROVIDE THAT PARTIES MAY
4 AGREE IN WRITING THAT ELECTRONICALLY GENERATED AGREEMENTS SHALL BE
5 ENFORCEABLE AS ORIGINALS; AMENDING SECTION 54-2056, IDAHO CODE, TO PROVIDE
6 THAT A BROKER WHO TERMINATES THE ASSOCIATION OF A SALES ASSOCIATE FOR CER-
7 TAIN VIOLATIONS SHALL PROMPTLY NOTIFY THE COMMISSION IN WRITING; AMENDING
8 SECTION 54-2058, IDAHO CODE, TO PROVIDE THAT CERTAIN RECORDS SHALL BE MADE
9 AVAILABLE TO THE COMMISSION FOR INVESTIGATORY PURPOSES; AMENDING SECTION
10 54-2061, IDAHO CODE, TO PROVIDE THAT LICENSEES SHALL REPORT CONVICTIONS,
11 INCOMPETENCY DECLARATIONS AND ADVERSE CIVIL JUDGMENTS TO THE COMMISSION
12 WITHIN TWENTY DAYS; AMENDING SECTION 54-2062, IDAHO CODE, TO PROVIDE THAT
13 LICENSEES SHALL REPORT ADVERSE FINAL ADMINISTRATIVE ACTIONS TO THE COMMIS-
14 SION WITHIN TWENTY DAYS; AMENDING SECTION 54-2085, IDAHO CODE, TO REVISE
15 DISCLOSURE AND WRITING REQUIREMENTS AND TO MAKE A TECHNICAL CORRECTION;
16 AND AMENDING SECTION 54-2087, IDAHO CODE, TO REVISE DUTIES AND OBLIGATIONS
17 OF BROKERAGES AND LICENSEES TO CLIENTS.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Section 54-2004, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 54-2004. DEFINITIONS. As used in this chapter:
22 (1) "Associate broker" means an individual who has qualified personally
23 as a real estate broker in Idaho under this chapter, but is licensed under,
24 associated with and represents a designated broker in the performance of any
25 acts requiring a real estate license in Idaho described in subsection (25) of
26 this section.
27 (2) "Business opportunity" means and includes an established business,
28 good will of an established business, or any interest therein, or any one (1)
29 or combination thereof, where a sale or transfer of an interest in land,
30 including, but not limited to, an assignment of a lease, is involved in the
31 transaction "Branch office" means an office operated by a licensed real estate
32 broker or licensed legal business entity, separate and apart from the main
33 office. A branch office may be licensed or unlicensed, in accordance with this
34 chapter.
35 (3) "Brokerage agreement" means a written contract between a buyer,
36 seller, or both, and a real estate brokerage for agency representation in a
37 regulated real estate transaction.
38 (34) "Brokerage company" means a real estate business, whether a sole
39 proprietorship, a legal entity, or any other licensed person engaged in acts
40 requiring a real estate license in Idaho, and which is conducting or holding
41 itself out as conducting the business of real estate through a designated bro-
42 ker.
43 (5) "Business name" means the name that appears on the real estate
44 broker's license issued by the commission.
45 (6) "Business opportunity" means and includes an established business,
46 good will of an established business, or any interest therein, or any one (1)
47 or combination thereof, where a sale or transfer of an interest in land
48 including, but not limited to, an assignment of a lease, is involved in the
49 transaction.
50 (47) "Commission" means the Idaho real estate commission, unless the con-
51 text clearly indicates a different meaning.
52 (58) "Convicted" means a plea of nolo contendere or guilty, a jury ver-
3
1 dict of guilty or a court decision of guilt whether or not a judgment or sen-
2 tence has been imposed, withheld or suspended.
3 (9) "Cooperative sale" means a transaction involving two (2) or more bro-
4 kers.
5 (610) "Council" means the Idaho real estate education council.
6 (711) "Dealer in options" means any person, firm, partnership, association
7 or corporation who shall directly or indirectly take, obtain or use options to
8 purchase, exchange, lease option or lease purchase real property or any inter-
9 est therein for another or others whether or not the options shall be in his
10 or its name and whether or not title to the property shall pass through the
11 name of the person, firm, partnership, association or corporation in connec-
12 tion with the purchase, sale, exchange, lease option or lease purchase of the
13 real property, or interest therein.
14 (12) "Designated broker" means an individual who is licensed as a real
15 estate broker in Idaho and who is designated by the brokerage company to be
16 responsible for the supervision of the brokerage company and the activities of
17 any associated licensees in accordance with this chapter.
18 (13) "Distance learning course" means, in relation to a real estate course
19 offering, a real estate course that is delivered, not as a live course, but
20 through a medium in which the instructor and student are separated by distance
21 or time.
22 (814) "Double contract" means two (2) or more written or unwritten con-
23 tracts of sale, purchase and sale agreements, loan applications, or any other
24 agreements, one (1) of which is not made known to the prospective loan under-
25 writer or the loan guarantor, to enable the buyer to obtain a larger loan than
26 the true sales price would allow, or to enable the buyer to qualify for a loan
27 which he or she otherwise could not obtain. An agreement or loan application
28 is not made known unless it is disclosed in writing to the prospective loan
29 underwriter or loan guarantor.
30 (9) "Designated broker" means an individual who is licensed as a real
31 estate broker in Idaho and who is designated by the brokerage company to be
32 responsible for the supervision of the brokerage company and the activities of
33 any associated licensees in accordance with this chapter.
34 (105) "Executive director" means the executive director of the Idaho real
35 estate commission.
36 (16) "Fee or commission" means a payment, actual, promised or expected, as
37 compensation for the performance of any act requiring a real estate license.
38 (117) "Legal business entity" means and includes any type of corporation,
39 partnership, limited liability company or limited liability partnership, a
40 governmental entity, trust or other entity capable of conducting business.
41 (128) "Licensee" means any person who is licensed in accordance with this
42 chapter to engage in the business or act in the capacity of real estate bro-
43 ker, associate broker or real estate salesperson.
44 (139) "Limited broker" means a broker individually qualified to do busi-
45 ness in Idaho, but who may not have associate brokers or salespersons licensed
46 with that broker.
47 (20) "Live presentation" means, in reference to a real estate course
48 offering, a real estate course that is personally presented by the instructor
49 and personally attended by the student at the same facility.
50 (21) "Main office" means the principal location where the real estate bro-
51 ker is licensed to transact business.
52 (1422) "Person" means and includes an individual, or any legal business
53 entity.
54 (1523) "Primary Idaho license" means an Idaho real estate license not
55 obtained by reciprocal agreement that is not contingent upon continuance of a
4
1 license in another state or jurisdiction.
2 (1624) "Provisional license" means an extension of the period of active
3 licensure, beyond the licensee's expiration date, granted by the commission
4 for the purpose of allowing the licensee to complete the continuing education
5 requirements set forth in section 54-2023, Idaho Code, or for any other pur-
6 pose allowed by this chapter.
7 (1725) "Real estate broker" means and includes:
8 (a) Any person other than a real estate salesperson, who, directly or
9 indirectly, while acting for another, for compensation or a promise or an
10 expectation thereof, engages in any of the following: sells, lists, buys,
11 or negotiates, or offers to sell, list, buy or negotiate the purchase,
12 sale, option or exchange of real estate or any interest therein or busi-
13 ness opportunity or interest therein for others.;
14 (b) Any actively licensed broker while, directly or indirectly, acting on
15 the broker's own behalf;
16 (c) Any person who represents to the public that the person is engaged in
17 any of the above activities;
18 (d) Any person who directly or indirectly engages in, directs, or takes
19 any part in the procuring of prospects, or in the negotiating or closing
20 of any transaction which does or is calculated to result in any of the
21 acts above set forth.;
22 (e) A dealer in options as defined in this section.
23 (1826) "Real estate salesperson" or "salesperson" means any person who has
24 qualified and is licensed as a real estate salesperson in Idaho under this
25 chapter, and is licensed under, associated with, and represents a designated
26 broker in the performance of any acts requiring a real estate license in Idaho
27 described in subsection (25) of this section.
28 (1927) "Reciprocal license" means an Idaho real estate license that is
29 issued to any person based upon pursuant to the terms of a specific, written
30 reciprocal agreement between Idaho and another state where the person holds a
31 primary license or jurisdiction, and that is contingent upon the licensee's
32 maintaining a license in the other state or jurisdiction.
33 (208) "Regulated real estate transaction" means those real estate transac-
34 tions for which a real estate license is required under chapter 20, title 54,
35 Idaho Code.
36 (219) "Responsible broker" means the designated broker in the regulated
37 real estate transaction who is responsible for the accounting and transaction
38 files for the transaction, in the manner described in section 54-2048, Idaho
39 Code.
40 (2230) "Sales associate" means a salesperson or an associate broker
41 licensed under and associated with a designated broker.
42 (231) "State or jurisdiction" means and includes any of the fifty (50)
43 states and any foreign jurisdiction that issue real estate licenses substan-
44 tially similar to those provided for in this chapter.
45 (32) "Successfully completed" means, in reference to a real estate course
46 offering, completing all required course hours and, except where the licensee
47 seeks continuing education credit for having regularly attended the live pre-
48 sentation of a course, passing a commission-approved final examination.
49 (2433) "Wall license" means the certificate of license issued by the com-
50 mission.
51 SECTION 2. That Section 54-2012, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 54-2012. MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE.
5
1 (1) Requirements for all individual primary licenses. Unless a qualification
2 is waived or modified by the commission for good cause and upon special con-
3 sideration, and except as provided in section 54-2015, Idaho Code, each person
4 seeking a primary Idaho real estate license as a salesperson, associate broker
5 or designated broker shall meet all of the following minimum qualifications:
6 (a) Be an individual;
7 (b) Be eighteen (18) years of age or older;
8 (c) Furnish satisfactory proof that the applicant graduated from an
9 accredited high school or its equivalent or holds a certificate of general
10 education;
11 (d) Not have had a real estate or other professional or occupational
12 license revoked, suspended, or surrendered, or the renewal refused, for a
13 disciplinary violation involving fraud, misrepresentation or dishonest or
14 dishonorable dealing, in Idaho or any other jurisdiction, within five (5)
15 years immediately prior to the date the application for license is submit-
16 ted to the commission;
17 (e) Not have been convicted, issued any fine, placed on probation,
18 received a withheld judgment or completed any sentence of confinement for
19 or on account of any felony, or any misdemeanor involving fraud, misrepre-
20 sentation or dishonest or dishonorable dealing, in a state or federal
21 court, within five (5) years immediately prior to the date the application
22 for license is submitted to the commission;
23 (f) Complete all prelicense education requirements as provided for in
24 section 54-2022, Idaho Code, for a salesperson's or broker's license;
25 (g) Pass the commission-approved real estate licensing exam for a sales
26 or broker license in the time and manner stated in section 54-2014, Idaho
27 Code, and pay the required exam fees;
28 (h) Be fingerprinted by an authorized law enforcement agency, and file
29 these fingerprints with the commission for the purpose of determining
30 whether the qualifications for licensure are fulfilled; the fingerprints
31 will be forwarded to the federal bureau of investigation or the Idaho
32 department of law enforcement; all fees charged by the commission and the
33 law enforcement agency for fingerprint services shall be paid by the
34 applicant;
35 (i) Sign and file with the commission an irrevocable consent to service,
36 appointing the commission's executive director to act as the licensee's
37 agent upon whom all judicial and other process or legal notices directed
38 to such licensee may be served, and consenting that any lawful process
39 against the licensee that is served upon the executive director shall be
40 of the same legal force and validity as if served upon the licensee and
41 that the authority shall continue in force so long as any liability
42 remains outstanding in this state. Upon receipt of any such process or
43 notice, the executive director shall immediately mail a copy of the same
44 by certified mail to the last known business address of the licensee. All
45 licensees shall provide the commission a full and current mailing address
46 and shall immediately notify the commission in writing of any change in
47 mailing address;
48 (j) If licensing as an active salesperson or associate broker, provide
49 the name and physical address of the main business location of the desig-
50 nated broker with whom the applicant will be licensed, and the signature
51 of that broker; or, if licensing as a designated broker, provide the name
52 and physical address of the main business location. No Idaho sales associ-
53 ate may be licensed under or associated with more than one (1) Idaho bro-
54 ker at a time;
55 (k) Submit a properly completed application and all license, application
6
1 and other fees listed in section 54-2020, Idaho Code, or as otherwise
2 required by statute or rule; and
3 (l) Provide satisfactory proof of meeting the mandatory errors and omis-
4 sions insurance requirement for real estate licensees, as stated in sec-
5 tion 54-2013, Idaho Code.
6 (2) Additional requirements for broker and associate broker licenses.
7 Applicants seeking a primary Idaho license as a broker or associate broker
8 shall meet the additional following qualifications:
9 (a) Provide satisfactory evidence of having been actively engaged, on a
10 full-time basis, for two (2) years as a licensed real estate salesperson
11 within five (5) years immediately prior to the date upon which the indi-
12 vidual makes application:. Such evidence shall demonstrate the
13 productiveness of the licensed activity to have been generally commensu-
14 rate with that of other licensees practicing in a similar capacity. List-
15 ings, sales, options or other licensed activities may be considered by the
16 commission in determining whether the applicant meets this qualification.
17 (i) A broker or associate broker applicant may be required to fur-
18 nish a report of listings and sales accomplished by the applicant
19 during two (2) or more years within the last five (5) years of licen-
20 sure immediately prior to the application date;
21 (ii) This report shall be certified as correct by the broker or bro-
22 kers with whom the applicant has been associated;
23 (iii) The broker experience requirement may be modified or reduced,
24 in whole or in part, at the discretion of the commission, based upon
25 the applicant's educational background, or experience in related or
26 affiliated business activities;
27 (iv) The commission in its discretion may make such additional
28 investigation and inquiry relative to the applicant as it shall deem
29 advisable;
30 (b) Designate a physical office location and a business name. The commis-
31 sion may refuse to issue a license to any person if the business name is
32 the same as that of any person whose license has been suspended or revoked
33 or is so similar as to be easily confused with another licensee's name by
34 members of the general public. However, nothing in this subsection shall
35 restrict an individual from obtaining a license in his or her own legal
36 name.
37 (c) If currently licensed in Idaho as a salesperson and applying for a
38 license as an Idaho broker or associate broker, the individual shall sub-
39 mit a new fingerprint card for processing with the application and pay
40 associated fees.
41 SECTION 3. That Section 54-2014, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 54-2014. LICENSE EXAMS. (1) Exam required. Unless a written certificate
44 of waiver is obtained from the commission and submitted with the application,
45 an individual applicant seeking a primary Idaho real estate license shall take
46 and pass the national portion and the Idaho state portion of an approved exam
47 administered by or through the commission. The license applicant shall take
48 and pass the required portion or portions of the exam within no more than
49 twelve (12) months immediately preceding the date of the license application.
50 (2) Preregistration for the exam. An applicant individual may preregister
51 to sit and take the exam by submitting a completed preregistration exam appli-
52 cation form and a nonrefundable exam fee in an amount established by motion of
53 the commission, not to exceed one hundred dollars ($100). The exam application
7
1 and fee shall be submitted directly to the testing company administering the
2 exam, or to the commission, as specified by the commission, and shall be post-
3 marked in the manner and time specified by the commission. Failure to appear
4 for any reason for the exam shall cancel the exam application. A new exam
5 application and fee shall be required to take the exam at a future time.
6 (3) Walk-in registration for the exam. An applicant individual may appear
7 at a testing center and take the exam without having preregistered so long as
8 seating remains available at the center. The applicant individual shall submit
9 a completed exam application and a walk-in exam fee in an amount established
10 by motion of the commission, not to exceed one hundred ten dollars ($110), at
11 the time the applicant individual is admitted to take the exam.
12 (4) Waiver of national portion of exam. An applicant individual who has
13 obtained a written certificate from the commission waiving the national por-
14 tion of the exam shall be required to take and pass the Idaho state portion of
15 the exam only. The certificate of waiver and exam fee shall be submitted with
16 the application for exam.
17 (5) Failure to pass the exam. An applicant individual who fails to pass
18 the exam may reapply to take another exam. The applicant individual must com-
19 plete a new exam application and submit a new exam fee.
20 (6) The commission shall establish, by motion, fees for the exam which,
21 in its discretion, are sufficient to raise the revenue required to administer
22 the exam. Fees so established shall remain effective from year to year and may
23 be altered only upon proper motion by the commission.
24 SECTION 4. That Section 54-2015, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-2015. INDIVIDUALS ACTIVELY LICENSED IN ANOTHER STATE OR JURISDICTION
27 SEEKING PRIMARY IDAHO LICENSURE. (1) An individual who is currently and activ-
28 ely licensed as a real estate broker or salesperson in another state or juris-
29 diction at the time of application for a primary Idaho real estate license
30 shall meet all qualifications listed in section 54-2012, Idaho Code, for the
31 type of license sought, except that the applicant shall not be required to
32 furnish proof of the educational prerequisites described in subsections (1)(c)
33 and (1)(f) of section 54-2012, Idaho Code. In addition, such applicant shall
34 provide a current, certified license history from the other licensing state or
35 jurisdiction, which history shall indicate any disciplinary action taken
36 against the applicant's license by the other licensing state or jurisdiction,
37 and the status and standing of the applicant's license in the other state or
38 jurisdiction.
39 (2) An applicant individual who holds an active license, in good
40 standing, in another state or jurisdiction may, upon written request from the
41 commission, obtain a certificate of waiver of the national portion of the exam
42 required for Idaho licensure. To have the national portion of the exam waived,
43 a A request for waiver shall indicate the individual's mailing address to
44 which the commission is to deliver the certificate of waiver. The certificate
45 of waiver must be obtained from the Idaho real estate commission and shall be
46 submitted with the application for exam as provided in subsection (4) of sec-
47 tion 54-2014, Idaho Code.
48 (3) An individual who is currently and actively licensed in another state
49 or jurisdiction that administers a real estate exam may be issued a primary
50 Idaho license without further exam or proof of educational prerequisites pur-
51 suant to written agreement between Idaho and the other state or jurisdiction,
52 provided that such other state or jurisdiction allows the issuance of real
53 estate licenses in substantially the same manner as set forth in this subsec-
8
1 tion.
2 SECTION 5. That Section 54-2016, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 54-2016. PRIMARY IDAHO LICENSES FOR LEGAL BUSINESS ENTITIES, SOLE
5 PROPRIETORSHIPS AND BRANCH OFFICES -- ADDITIONAL REQUIREMENTS. (1) Legal busi-
6 ness entities. Each legal business entity, as defined in section 54-2004,
7 Idaho Code, shall be licensed by the Idaho real estate commission to engage in
8 the real estate business in Idaho and shall make proper application, pay all
9 required fees, and meet all requirements listed below.
10 (a) Each legal business entity shall have a properly licensed individual
11 designated broker, who shall be held responsible for the activities of the
12 licensed entity. The individual designated broker shall also hold the fol-
13 lowing legal position within the licensed entity:
14 (i) Corporation -- an officer;
15 (ii) Partnership or limited partnership -- a general partner;
16 (iii) Limited liability company -- a member or manager.
17 It is the intent of the law that in these and in any other instance, tThe
18 individual designated broker for any business entity shall have full
19 authority to act on behalf of the licensed business entity, and shall sub-
20 mit sufficient and satisfactory proof thereof with the application for
21 license. Such proof shall include a list of the entity's officers, direc-
22 tors, members or managers, as reflected in the minutes, resolutions or
23 other similar business documents of the entity. All acts of that individ-
24 ual as designated broker shall be considered acts of the licensed business
25 entity. Nothing in this section is intended to create liability to a legal
26 business entity for illegal or fraudulent acts by the individual broker
27 performed solely on his own account.
28 (b) A license issued to a legal business entity, as defined in this chap-
29 ter, is effective only as long as the individual designated broker's
30 license is in active status and in effect. If the individual so designated
31 has a license refused, revoked, suspended or otherwise made inactive by
32 the commission, or if the individual designated broker voluntarily surren-
33 ders the individual license or ceases to be connected with the entity in
34 the manner required above, the business entity shall have ten (10) busi-
35 ness days in which to designate another qualified individual as designated
36 broker before the entity's license is terminated, and the licenses of all
37 associated licensees are made inactive.
38 (c) One (1) individual may act as designated broker for more than one (1)
39 licensed business entity, however, all entities shall have their main
40 offices in the same physical location.
41 (d) Satisfactory proof of mandatory errors and omissions insurance shall
42 be provided for both the individual designated broker and the licensed
43 business entity.
44 (e) A legal business entity doing business under an assumed name shall
45 provide satisfactory proof of having legally filed a certificate of
46 assumed name with the Idaho secretary of state.
47 (2) Sole proprietorships. An individual designated broker not licensed
48 with a legal business entity, as defined in section 54-2004(11), Idaho Code,
49 shall be licensed as a sole proprietor. Each sole proprietorship seeking a
50 real estate license shall meet all of the following requirements:
51 (a) A licensed sole proprietor doing business under an assumed business
52 name shall provide satisfactory proof of having legally filed a certifi-
53 cate of assumed name with the Idaho secretary of state;
9
1 (b) Satisfactory proof of mandatory errors and omissions insurance shall
2 be provided for the licensed designated broker of a sole proprietorship.
3 (3) Multiple business names prohibited. A legal business entity or sole
4 proprietorship shall be licensed under only one (1) business name.
5 (4) Branch offices. Each bBranch offices in which trust funds or and
6 original transaction files are maintained shall be separately licensed by
7 application and payment of fifty dollars ($50.00) for the issuance and renewal
8 of each branch office license. Such branch office in accordance with the fol-
9 lowing:
10 (a) The designated broker establishing the branch office shall submit an
11 application, along with the required fee for the issuance or renewal of
12 the branch office license.
13 (b) The broker shall designate in the application a branch manager, who
14 shall be a salesperson with at least two (2) years' experience or an asso-
15 ciate broker, to regularly occupy and be responsible for the supervision
16 of the branch office. When a branch manager is a regular full-time
17 employee or is engaged in a full-time activity at a location other than
18 the place he is licensed to do business, a presumption will be made that
19 the branch manager is unable to responsibly supervise the branch; provided
20 however, the presumption may be overcome by evidence to the contrary which
21 the commission determines to be satisfactory.
22 (c) A branch manager shall not be licensed to manage more than one (1)
23 branch office at a time.
24 (d) A license issued to a branch office is valid and in effect only as
25 long as the license of the designated individual remains in active status.
26 The wall license of the branch office shall be signed by the designated
27 broker.
28 (e) No separate branch office license or manager is required for business
29 locations other than the main office unless trust funds or original trans-
30 action records are kept at the branch.
31 (f) If a separate real estate trust account is maintained for a branch
32 office, all records and related files for that account shall be maintained
33 at the branch office.
34 (g) Each branch office or business location, whether separately licensed
35 or not, shall conduct business only in the licensed name of the legal
36 entity or sole proprietor.
37 SECTION 6. That Section 54-2018, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
40 -- EFFECTIVE DATES. (1) Each new or reactivated license shall be for a period
41 of one (1) year plus the months up to and including the next birth date of the
42 licensee, not to exceed a period of two (2) years, and shall expire on a date
43 to coincide with the last day of the month of the birth date of the licensee.
44 Corporations, partnerships, limited liability companies and other entities
45 defined as "persons" in this chapter shall have established as the equivalent
46 of a birth date, the birth date of its designated broker. Licensed branch
47 offices shall have established as the equivalent of a birth date, the birth
48 date of the real estate broker establishing the branch office.
49 (2) Each license shall be renewable for a period of two (2) years by sub-
50 mitting a properly completed application, including evidence of having met the
51 commission's continuing education requirements as set forth in section
52 54-2023, Idaho Code, and all renewal fees established by this chapter or by
53 the commission, on or before 5 p.m. of the last day of the birth month of the
10
1 licensee. If mailed, the application and fee shall be postmarked by that same
2 date and time.
3 (3) If the licensee fails to submit a proper application or pay the
4 renewal fee on or before the last day of the birth month of the licensee, the
5 commission may accept a later payment, subject to such conditions as the com-
6 mission may require including, but not limited to, the assessment of a late
7 fee; provided that between the last day of the month of the licensee's birth
8 date and the date of renewal of the license, the rights of the licensee under
9 such license shall be suspended expired, and during such period of suspension
10 expiration it shall be unlawful for any licensee to do or attempt to offer to
11 do any of the acts of the kind and nature described in the definitions of real
12 estate broker or real estate salesperson in section 54-2004, Idaho Code, in
13 consideration of compensation of any kind or expectation thereof. An expired
14 license that is not renewed within one (1) year of the expiration date shall
15 be automatically terminated by the commission and may not be renewed.
16 (4) A licensee who has paid all applicable fees, who is not affiliated
17 with a designated broker and who holds a current license that is not revoked
18 or suspended may place his license on inactive status. The holder of an inac-
19 tive license During the period that his license is inactive, the licensee
20 shall not engage in the business or act in the capacity of real estate broker,
21 associate broker or salesperson. An inactive license may be reactivated as
22 provided in this chapter and the rules of the commission However, an inactive
23 licensee may receive a referral fee for any referral made during the period
24 his license was active. A licensee may reactivate an inactive license by meet-
25 ing each of the following:
26 (a) Making proper application and paying the required fee;
27 (b) Licensing under an Idaho broker as a sales associate or, if licensing
28 as a broker, establishing an office and making proper application and pay-
29 ing the required fee;
30 (c) Providing evidence of having errors or omissions insurance in the
31 manner required by section 54-2013, Idaho Code, and in accordance with the
32 rules of the commission; and
33 (d) Providing evidence of having successfully completed the continuing
34 education requirements or their equivalent, as prescribed in section
35 54-2023, Idaho Code. A continuing education course taken to make up a
36 deficiency of the requirements from the previous renewal period may be
37 applied toward the continuing education requirements for the current
38 period.
39 (5) An individual licensee, whether active or inactive, shall provide
40 written notice to the commission of any change of his personal name, address
41 of personal residence or personal telephone number. Notice shall be provided
42 within ten (10) days of the change. If the licensee has changed his personal
43 name, he shall also submit legal proof of the change and the fee for printing
44 a new license and, if an active licensee, he shall return the wall license
45 bearing his former name.
46 (6) No license shall be valid unless signed by the licensee.
47 (7) Application requests for licensure and for license changes shall
48 become effective when the properly completed forms, attachments and required
49 fees are received at and approved by the commission. Applications which are
50 incomplete or lacking proper fees shall be returned to the applicant and no
51 license shall be issued until a completed application and proper fees are
52 physically received at and actually approved by the commission.
53 SECTION 7. That Section 54-2019, Idaho Code, be, and the same is hereby
54 amended to read as follows:
11
1 54-2019. DENIAL OF LICENSE APPLICATIONS. (1) The commission may deny any
2 license application, including an application for license renewal, upon the
3 commission's determination of any of the following:
4 (1a) The applicant does not possess all of the qualifications required
5 for the license sought;
6 (2b) The applicant employed fraud, deception, misrepresentation, mis-
7 statement or omission or any unlawful means in applying for a license or
8 taking the exam;
9 (3c) Within the five-year period immediately preceding the application,
10 the applicant committed any act for which a real estate license in Idaho
11 may be revoked or suspended;
12 (d) Payment of any licensing fee by check that is returned by the banking
13 institution due to insufficient funds, unless the reason for not paying on
14 the check is the fault of the banking institution; or
15 (4e) There exist any other specific facts about the applicant that cause
16 the commission to reasonably conclude that granting the applicant's
17 request for Idaho licensure is not in the best interests of the citizens
18 of the state of Idaho.
19 (2) Where any of the facts referenced above warranting denial of the
20 application are not discovered or determined by the commission until after the
21 license has been issued, such facts may be grounds for the expiration, termi-
22 nation, suspension or revocation of the license.
23 SECTION 8. That Section 54-2020, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 54-2020. FEES. The Idaho real estate commission shall establish fees
26 which, in its discretion, are sufficient, when added to the other fees autho-
27 rized by this chapter, or any other law or rule, to raise that revenue
28 required to administer the provisions of this chapter.
29 Each person seeking any type of Idaho real estate license shall pay The
30 commission shall assess the following fees, in addition to any other fees
31 established in this chapter or by rule:
32 (1) For each year or portion thereof for which an active or inactive
33 license is issued or renewed, a license fee in an amount not to exceed one
34 hundred dollars ($100), the exact fee to be determined by administrative rule
35 of the commission. Fees so established shall remain effective from year to
36 year unless changed through the rules promulgation process prescribed in chap-
37 ter 52, title 67, Idaho Code;
38 (2) A tuition or registration fee for real estate education courses,
39 course materials and any course exam fee. These fees shall be established
40 based upon the total annual costs involved in the provision of all real estate
41 education courses, course materials and course exam fees;
42 (3) A fee in the amount of twenty-five dollars ($25.00) for late license
43 renewal;
44 (4) A fee in the amount of fifteen dollars ($15.00) for any license
45 change that necessitates the printing of a new license certificate;
46 (5) A fee in the amount allowed by law for insufficient funds checks or
47 other types of insufficient payment;
48 (6) A fee in the amount of ten dollars ($10.00) for each certified copy
49 of a licensee's education history or license history;
50 (7) A fee in the amount of fifty dollars ($50.00) for issuance or renewal
51 of a branch office license.
52 SECTION 9. That Section 54-2022, Idaho Code, be, and the same is hereby
12
1 amended to read as follows:
2 54-2022. REAL ESTATE EDUCATION -- PRELICENSE REQUIREMENTS. (1) Except as
3 provided in section 54-2015, Idaho Code, an applicant seeking a primary Idaho
4 license as a real estate salesperson, broker or associate broker shall furnish
5 satisfactory proof to the commission that the applicant has successfully com-
6 pleted current commission-approved and accredited courses of real estate study
7 as follows:
8 (a) Salesperson's license. For a salesperson's license, the applicant
9 shall complete a total of ninety (90) classroom hours, or the equivalent
10 in available correspondence hours;
11 (b) Broker's or associate broker's license. Applicants seeking a broker's
12 or associate broker's license shall, in addition to meeting the require-
13 ments for a salesperson's license, successfully complete four (4) speci-
14 fied courses in advanced real estate study, for a minimum of ninety (90)
15 additional classroom hours, or the equivalent in available correspondence
16 hours.
17 (2) Each applicant shall successfully complete all prelicense real estate
18 courses within no more than five (5) years prior to the date of the license
19 application. However, upon written request for special consideration by the
20 license applicant, the commission may waive or modify the five-year require-
21 ment at its discretion, based on the applicant's experience or additional edu-
22 cation. Each waiver request shall be submitted with a current certified
23 license history from Idaho or the applicant's other licensing jurisdiction,
24 which history shall indicate all disciplinary actions taken against the
25 applicant's license and the status and standing of such license in such
26 licensing state or jurisdiction, along with sufficient proof of education com-
27 pletion.
28 (3) To receive credit for prelicense real estate courses, a student
29 must regularly attend and complete the course, and such course must meet all
30 requirements set forth in section 54-2036, Idaho Code.
31 (4) No credit will be given for courses taken for audit.
32 (5) Credit for completion of approved prelicense education course work
33 will not be granted when the content of a course repeats that for which credit
34 has been previously received.
35 (6) Upon written request from a license applicant, the commission may
36 waive or modify one (1) or more prelicense course requirements based upon the
37 applicant's satisfactory completion of similar real estate courses in Idaho or
38 another state or jurisdiction. The request for waiver shall be accompanied by
39 an official transcript from the institution that provided the course of
40 instruction, along with a description of the subjects covered in the course
41 and the number of classroom hours involved in the instruction. "Satisfactory
42 completion" means the applicant regularly attended the course and received a
43 final grade of "C" or better.
44 SECTION 10. That Section 54-2023, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
47 of an Idaho real estate license on active status, and each Idaho licensee
48 seeking to change from inactive to active license status, shall submit satis-
49 factory proof to the commission of having successfully completed at least
50 twelve (12) classroom hours of commission-approved and certified continuing
51 education course work. Failure to provide proof of meeting the continuing edu-
52 cation requirements as set forth in this chapter constitutes an incomplete
13
1 application for a renewal of an active license or for a change in license sta-
2 tus from inactive to active, and, as such, constitutes grounds for denial of
3 those applications.
4 (1) Renewing active license. Licensees renewing on active status must
5 successfully complete the continuing education requirement on or before the
6 license expiration date, in the manner stated in section 54-2018, Idaho Code.
7 (2) Change from inactive to active. Licensees changing from inactive to
8 active status must successfully complete one (1) continuing education require-
9 ment offered during their current inactive license period.
10 (3) No duplicate credit. Credit for completion of any approved continuing
11 education course will not be granted twice.
12 (4) Excess credits. The twelve (12) hours of course work shall apply to
13 the license period in which such course work is completed; hours completed in
14 excess of those required for the license period shall not accumulate or be
15 credited for the purposes of subsequent license renewal periods.
16 (5) Challenge exams. The commission may substitute all or a portion of
17 the continuing education course work required when a licensee shows evidence
18 of passing an approved challenge exam or of completing equivalent education
19 determined by the commission to be in full compliance with such continuing
20 education requirements.
21 (6) No exam for live courses. A licensee may receive continuing education
22 course credit without having to take or pass an exam if the licensee person-
23 ally attends the entire live presentation of an approved course.
24 (7) Provisional license -- Extension of time. A three-month extension of
25 time for completing the education requirements may be obtained by submitting
26 with the renewal application, or application to activate, satisfactory evi-
27 dence showing that the applicant was unable to comply with such education
28 requirements. Such evidence may be:
29 (a) Bona fide hardship preventing completion of the reinstatement
30 requirements of an inactive license;
31 (b) Health reasons preventing attendance or completion;
32 (c) Active duty in the military service with assignment to a permanent
33 duty station outside of the state during the last twelve (12) months of a
34 license period; or
35 (d) Other compelling cause beyond the control of the applicant while
36 engaged in the real estate business.
37 If such an extension is granted, the licensee shall receive a provisional
38 license for a period of time not to exceed three (3) months. No further exten-
39 sion of time may be granted. A license issued or renewed after an extension of
40 time has been granted shall be dated effective as of the original license
41 expiration date and not the extended date. Failure to satisfy the continuing
42 education requirement within the time granted shall result in the automatic
43 inactivation of the license.
44 SECTION 11. That Section 54-2025, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 54-2025. CERTIFICATION REQUIREMENTS. (1) Certification required. Certifi-
47 cation must be obtained by all course providers, course instructors and for
48 all course content in order for the course to be credited toward prelicense or
49 continuing education requirements in Idaho under this chapter.
50 (2) Courses, instructors and providers monitored. The commission or its
51 representative may monitor any course for the purpose of course, instructor or
52 provider certification.
53 (3) If the commission at any time determines that an instructor, course
14
1 or provider is not meeting the requirements for continued commission approval
2 or certification, written notification detailing the deficiencies requiring
3 correction shall be made immediately to the appropriate person. The commission
4 shall take no action to withdraw the certification for thirty (30) days from
5 the date of the written notice. At the expiration of this period, if the defi-
6 ciencies have not been corrected to the commission's satisfaction, the commis-
7 sion may take action to withdraw certification. Withdrawal of certification
8 shall be governed by the Idaho administrative procedure act, chapter 52, title
9 67, Idaho Code, and the rules of the commission.
10 SECTION 12. That Section 54-2027, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 54-2027. DUTIES AND REQUIREMENTS OF ALL CERTIFIED COURSE PROVIDERS. Fail-
13 ure of a certified course provider to comply with the following duties and
14 requirements shall be grounds for the commission to withdraw or cancel the
15 provider's certification for cause.
16 (1) Discrimination prohibited. Each certified course provider shall at
17 all times be in compliance with state and federal laws, rules and regulations
18 regarding all aspects of equal opportunity and protection of civil rights. No
19 course provider shall engage in discriminatory practices, nor allow their
20 course instructor, or method of delivery to violate laws prohibiting discrimi-
21 nation. Each course provider will fully comply with any requirements of the
22 Americans with disabilities act regarding access to and delivery of its
23 courses, including the provision of accessible facilities and reasonable
24 accommodations for students.
25 (2) Open access to course offerings. Registration and attendance at all
26 certified courses offered for prelicense or continuing education credit shall
27 be open to all persons meeting normal course prerequisites. A certified course
28 provider located in or affiliated with a licensed real estate brokerage com-
29 pany may not refuse reasonable access to any licensee based on that licensee's
30 affiliation with another organization or brokerage company, or the licensee's
31 membership status in any professional organization. However, a course provider
32 is not prohibited from charging a separate and reasonable course fee to
33 nonaffiliated or nonmember licensees.
34 (3) Disclosure of fees. All fees charged to a student by a course pro-
35 vider shall be specified separately in writing. If additional fees are charged
36 for supplies, materials or books required for course work, such fees shall be
37 itemized by the provider and, upon payment of such fees, the supplies, mate-
38 rials or books shall become the property of the student. All fees and the man-
39 ner in which they are to be paid shall be stated in a student contract, in a
40 form approved by the commission. The student contract shall expressly include
41 the provider's policy regarding the return of fees in the instance where the
42 student is dismissed or voluntarily withdraws from the course.
43 (4) Facilities and supportive personnel. The provider shall provide the
44 facilities and all supportive qualified personnel or approved proctors neces-
45 sary to adequately implement its real estate program.
46 (45) Student records and other requirements. Each Idaho certified course
47 provider shall comply with the following requirements:
48 (a) Records. Maintain for each individual student a complete, accurate
49 and detailed record which shall include the total number of hours of
50 instruction undertaken and satisfactorily or unsatisfactorily completed in
51 the area of study;
52 (b) Course completion lists. Within five (5) working days after conclu-
53 sion of each course of instruction, the provider shall submit to the coun-
15
1 cil or commission an alphabetical list which shall include the names,
2 addresses and social security numbers of the students completing the
3 course of instruction, the name of the course, the name of the instructor,
4 the number of hours included in the course, the date of the course and the
5 location. The list shall be certified by the instructor from whom the stu-
6 dents received instruction and an authorized representative of the pro-
7 vider;
8 (c) Grades. The provider will provide written notification to students
9 who successfully or unsuccessfully complete a course within thirty (30)
10 days of the course completion date;
11 (d) Evaluations. Each provider shall submit acceptable student evalua-
12 tions for each course and instructor, which must be on commission-approved
13 forms. The use of the commission evaluation form is recommended;
14 (e) Course schedules. Each provider shall submit schedules of courses and
15 instructors as requested by the commission and submit changes promptly as
16 they occur. Whenever there is a change in a course including, but not lim-
17 ited to, a change in curriculum, course length or instructor, the provider
18 shall promptly notify the commission in writing of the change.
19 (6) Posting and recording fees. The commission may require that course
20 providers pay to the commission a nonrefundable posting and recording fee to
21 defray normal expenses incurred in maintaining the certificate program. The
22 fee amount shall be established by the commission by motion.
23 (57) Advertising restrictions:
24 (a) Providers may advertise that they are currently certified by the com-
25 mission, if current certification has been approved, but no such advertis-
26 ing may state or imply that the provider is an agency of the commission or
27 the council;
28 (b) No course provider shall provide any information to the public or to
29 prospective students which is misleading in nature. Information is mis-
30 leading when, taken as a whole, there is distinct probability that it will
31 deceive the persons whom it is intended to influence.
32 (68) Changes in certification. Certification shall be granted to the par-
33 ticular provider for the specific ownership, provider location, and named
34 individual in charge as designated in the application for certification. Any
35 changes in ownership, provider location, or provider name, or named individual
36 in charge must be submitted for approval to the commission, at least one (1)
37 month in advance of the effective date of the proposed changes.
38 SECTION 13. That Section 54-2036, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 54-2036. CERTIFICATION OF COURSES AND COURSE CONTENT. Every real estate
41 course offered for prelicense or continuing education credit for an Idaho real
42 estate license shall first be certified and accredited by the Idaho real
43 estate commission.
44 (1) An application for course certification must be submitted in the form
45 and manner required by the commission, with proper fees, at least two (2)
46 months prior to contemplated date of the first course offering.
47 (2) Minimum requirements for course certification:
48 (a) Each course must be certified individually, offered only through a
49 provider certified or approved in Idaho, and taught by an instructor cer-
50 tified or approved in Idaho in accordance with this chapter.
51 (b) Each prelicense course must contain at least twenty (20) hours of
52 classroom instruction.
53 (c) Exam time shall not be included as approved classroom hours of
16
1 instruction.
2 (d) A course hour is defined as a period of at least fifty (50) minutes
3 of actual instruction.
4 (e) Distance learning and alternative course delivery. The length of a
5 certified distance learning or other alternative course shall be based
6 upon the same number of hours which would be awarded in an equivalent
7 classroom course, and must include a commission-approved, proctored final
8 exam. The commission may, by motion, adopt national standards and require
9 national certification for the design and delivery of noncommission-
10 produced distance learning courses.
11 (f) Each prelicense course must include a proctored, commission-approved
12 final exam requiring a minimum passing score of seventy percent (70%).
13 (i) Exam retake policy. Each certified course provider, may, at its
14 option, allow students who fail the initial course exam one (1)
15 opportunity to retake the approved course exam within the following
16 time periods:
17 1. Prelicense course exam retakes must occur within one (1)
18 month of the original course exam;
19 2. Continuing education course challenge exam retakes must
20 occur within that course's certification period;
21 (ii) If a student fails the retake exam for any prelicense or con-
22 tinuing education course, the student must repeat the entire course
23 and pass the final exam to receive credit.
24 (g) Challenge exams. A student shall not earn credit for any prelicense
25 course by challenging and passing the course exam without otherwise com-
26 pleting all course requirements. Credit for continuing education courses
27 may be earned by challenge exam only as allowed in section 54-2023(5),
28 Idaho Code.
29 (3) Approved topics. The commission shall establish specific, approved
30 topics for course content as it deems appropriate to current real estate prac-
31 tices and laws.
32 SECTION 14. That Section 54-2039, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 54-2039. BROKER AND BRANCH OFFICE MANAGER ABSENCES AND CHANGES. Each real
35 estate brokerage company must have a legally qualified individual acting as
36 designated broker at all times. Each branch office licensed under section
37 54-2016(4), Idaho Code, shall have, at all times, a legally qualified individ-
38 ual acting as branch office manager.
39 (1) Broker or branch manager absent for more than twenty-one days. A des-
40 ignated broker who is absent from his main office for more than twenty-one
41 (21) calendar consecutive days shall appoint a qualified designated broker of
42 another office, or an associate broker who is licensed and associated with the
43 absent broker, to manage, supervise and oversee the regular office operations
44 of the company in his absence. A branch office manager who is absent for more
45 than twenty-one (21) consecutive days from a branch office in which trust
46 funds and original transaction files are maintained shall appoint a qualified
47 individual to manage, supervise and oversee the regular office operations of
48 the company in his absence. The appointee shall conduct all supervisory activ-
49 ities normally required of the designated broker or branch manager. Except in
50 the event of an emergency, the designated broker or branch manager shall
51 notify the commission in writing of the name of the appointee prior to the
52 broker or manager leaving the office for an extended period of more than
53 twenty-one (21) consecutive days.
17
1 (2) Broker or branch manager absent for more than sixty days. A desig-
2 nated broker, or manager of a branch office in which trust funds and original
3 transaction files are maintained, shall not be absent from his main office for
4 a period longer than sixty (60) consecutive days. In the case of such extended
5 absence, another qualified individual shall be designated to act as broker or
6 branch office manager. If a designated broker is absent from his main office
7 for a period longer than sixty (60) consecutive days, and no new broker is
8 designated to act as broker for the brokerage company, the commission shall
9 place on inactive status the licenses of the absent broker and of all licen-
10 sees associated with him, and all brokerage listing agreements and all buyer
11 brokerage agreements shall be terminated.
12 (3) Change of broker in business entity. A license issued to a legal
13 business entity, as defined in this chapter, is effective only as long as the
14 individual designated broker's license is in active status and in effect. If
15 the individual so designated has a license refused, revoked, suspended or
16 otherwise made inactive by the commission, or if the individual designated
17 broker voluntarily surrenders the individual license or ceases to be connected
18 with the entity in the manner required in this chapter, the business entity
19 shall have ten (10) business days in which to designate another qualified
20 individual as designated broker before the entity's license is terminated, and
21 the licenses of all associated licensees are made inactive.
22 (4) Effective date of changes. No change in designated broker shall be
23 effective until written notice is received and approved by the commission, in
24 the form required.
25 (5) Failure to comply -- Original broker to remain responsible except in
26 the case of revocation. Where a licensed brokerage company fails to comply
27 with this section and its office is closed, or during any period where the
28 designated broker has left the brokerage company and no new broker has been
29 designated to act for the company, the original designated broker shall remain
30 responsible for trust account funds, pending transactions and records in the
31 manner described in sections 54-2041 through 54-2049, Idaho Code. However, if
32 the license of the original designated broker of the brokerage company is
33 revoked, the license of that brokerage company shall be made inactive and its
34 office closed until the company designates another qualified individual to act
35 as broker.
36 SECTION 15. That Section 54-2040, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 54-2040. MAIN OFFICE OR BUSINESS LOCATION -- DISPLAY OF LICENSE. (1) Def-
39 inite location required. Each individual licensed as a designated real estate
40 broker under the provisions of this chapter shall be required to have and
41 maintain a definite, physical place of business, which place shall serve as
42 his main office for the transaction of business and be regarded for the intent
43 and purpose of this chapter as his principal place of business. Notice in
44 writing shall be given to the commission of any change by the broker of the
45 business name, or business location, or mailing address whereupon a new
46 license shall be issued reflecting the changed business name or address and
47 each wall license requiring a change shall be returned to the commission along
48 with the fee for printing and issuance of a new license. A change of business
49 name or location without notification to the commission and issuance of a new
50 license shall automatically cancel inactivate the license heretofore previ-
51 ously issued. The broker shall also notify the commission in writing of any
52 change in the business mailing address telephone number.
53 (2) Broker for more than one business. A qualified individual may be the
18
1 designated broker for more than one (1) licensed real estate business entity
2 only if all licensed businesses operate their main offices at the same physi-
3 cal location.
4 (3) Brokers sharing same business location. More than one (1) individu-
5 ally licensed broker may operate an office at the same address only if each
6 broker operates under a business name which clearly identifies the broker as
7 an individual within the group of brokers, and each broker shall maintain his
8 or her records and trust accounts separate from all other brokers.
9 (4) Business name and display of licenses. A broker shall not conduct
10 business under any name other than the one in which the license is issued.
11 Current licenses of the broker and all associates licensed with the broker
12 shall be prominently displayed or available for public inspection in the
13 office designated with the commission as the broker's main office location. No
14 other location may be used as a main office location until proper notice is
15 acknowledged by the commission.
16 (5) Lending license prohibited. A broker shall not lend or permit the use
17 of the broker's license, whether for compensation or not, to enable anyone
18 licensed or unlicensed to, in fact, establish or carry on a business for which
19 a real estate broker's license is required, wherein the broker does not activ-
20 ely manage and have full control. In like manner, a salesperson shall not use
21 another person's broker's license, whether for compensation or not, to estab-
22 lish or carry on a business for which a broker's license is required, nor to
23 manage and control the office, except as allowed by sections 54-2016(4), and
24 54-2039(1), Idaho Code.
25 (6) Upon surrender of his real estate license or upon notice of suspen-
26 sion or revocation of such license, a licensee shall immediately forward the
27 wall license to the commission. The license of any sales associate licensed
28 under and associated with a broker whose license is to be surrendered, sus-
29 pended or revoked shall be returned to the commission on or before the effec-
30 tive date of the notice or order surrendering, suspending or revoking the
31 broker's license.
32 SECTION 16. That Section 54-2041, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 54-2041. TRUST ACCOUNTS AND ENTRUSTED PROPERTY. (1) A licensed Idaho real
35 estate broker shall be responsible for all moneys or property entrusted to
36 that broker or to any licensee representing the broker.
37 (2) Immediately upon receipt, the broker shall place entrusted moneys in
38 a neutral, qualified trust fund account in Idaho, and shall properly care for
39 any entrusted property.
40 (3) Entrusted moneys shall not be commingled with moneys of the broker,
41 firm or agent, except for that minimum amount that may be required to open and
42 maintain the trust account or as otherwise allowed by subsection (7) of sec-
43 tion 54-2042, Idaho Code.
44 (4) The real estate broker shall remain fully responsible and accountable
45 for all entrusted funds moneys and property until a full accounting has been
46 given to the parties involved.
47 SECTION 17. That Section 54-2042, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 54-2042. CREATION OF NONINTEREST-BEARING TRUST ACCOUNTS -- REQUIREMENTS.
50 A broker may establish one (1) or more real estate trust accounts but each
51 account must meet all requirements of this chapter, including the following:
19
1 (1) Each trust account must be established at an approved depository,
2 which must be located in the state of Idaho, and must be noninterest-bearing,
3 except as allowed in section 54-2043, Idaho Code, or as otherwise may be pro-
4 vided by law. Approved depositories are state or federally chartered banks
5 and trust companies, state or federally chartered savings and loan associa-
6 tions, properly licensed title insurance companies in Idaho, or an actively
7 licensed attorney at law in Idaho.
8 (2) Each account must be identified by the term "real estate trust
9 account," on checks, deposit slips, and with the depository.
10 (3) Each trust account must be established and maintained under the
11 licensed business name of the broker, and shall be under the full control of
12 the broker.
13 (4) Each broker trust account must have a separate and complete set of
14 records, which must consist of a monthly accounting, deposits, charges, and
15 withdrawals or checks, even if the moneys are on deposit with a title company,
16 attorney or other approved depository. The broker is responsible for ensuring
17 that these separate account records are provided by the depository.
18 (5) Funds deposited in a real estate trust account must be subject to
19 withdrawal on demand at the order or direction of the broker at all times,
20 even if deposited with a title company or other approved depository.
21 (6) A commission-approved form giving notice of opening a trust account
22 and giving authorization for the commission to inspect the account must be
23 completed for each trust account, signed by the broker and an officer of the
24 bank or depository and returned to the commission.
25 (7) No deposits to the trust account shall be made of funds that belong
26 to the broker or real estate firm, except that the broker may deposit broker
27 or firm funds for the purpose of opening and maintaining the account and for
28 the payment of anticipated bank service charges for the trust account. In no
29 event shall the balance of broker or firm funds in the account exceed three
30 hundred dollars ($300). Maintenance funds shall not be disbursed for any pur-
31 pose other than to cover bank charges charged directly to the trust account by
32 the bank.
33 (8) An entity not specified as an approved escrow depository in subsec-
34 tion (1) of this section, may be accepted and approved by the commission as an
35 escrow depository upon disclosure of the following:
36 (a) The details of the entity's financial structure;
37 (b) The amount and terms of errors and omissions insurance and any bond-
38 ing;
39 (c) A copy of the entity's last audit and financial statement;
40 (d) A copy of any license or certificate issued to the entity; and
41 (e) Any other information that may help the commission make its determi-
42 nation.
43 SECTION 18. That Section 54-2046, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 54-2046. TRUST ACCOUNT DISBURSEMENTS. The broker who holds entrusted
46 funds or like payments in lieu of cash received in a regulated real estate
47 transaction is fully responsible for all such funds until a full accounting
48 has been made to the parties involved. All cash or like payments in lieu of
49 cash must be disbursed from the real estate trust account only in accordance
50 with this section. Failure to comply with this section is a violation of
51 license law and will subject the broker to discipline.
52 (1) Written authorization required. No disbursements shall be made with-
53 out a written, signed authorization by the parties to the transaction or an
20
1 order of the court. Written and signed instructions from parties to the trans-
2 action may be in the purchase and sale agreement or in a separate document.
3 (2) Disbursements in advance of closing. No disbursements shall be made
4 in advance of closing or before the happening of a condition set forth in the
5 purchase and sale agreement or other agreement in a regulated real estate
6 transaction to the seller, closing agent or any other person without the
7 required written and signed authorization.
8 (3) Disbursements to escrow agent. When set forth in the purchase and
9 sale agreement that funds are to be disbursed to the person or company named
10 as the escrow closing agent or agency, such disbursement shall be made to the
11 person, company, agent or agency on or before the day of closing, and a
12 receipt for such disbursement shall be retained in the broker's transaction
13 file.
14 (4) Withdrawal of broker's commission. No disbursement of any portion of
15 the broker's commission shall take place without prior written, signed autho-
16 rization from the buyer and seller or until copies of the closing statements,
17 signed by the buyer and seller, have been delivered to the broker and until
18 the buyer or seller has been paid the amount due as determined by the closing
19 statement.
20 (45) Provision for forfeited earnest money. The purchase and sale agree-
21 ment must include a provision for division of moneys taken as earnest money
22 when the transaction is not closed and such moneys are retained by any person
23 as forfeited payment.
24 SECTION 19. That Section 54-2050, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 54-2050. BROKERAGE REPRESENTATION AGREEMENTS -- REQUIRED ELEMENTS. All
27 real estate brokerage representation agreements, whether with a buyer or
28 seller, must be in writing in the manner required by section 54-2085, Idaho
29 Code, and must contain the following contract provisions:
30 (1) Seller representation agreements. Each seller representation agree-
31 ment, whether exclusive or nonexclusive, must contain the following provi-
32 sions:
33 (a) Conspicuous and definite beginning and expiration dates;
34 (b) A legally enforceable description of the property;
35 (c) Price and terms;
36 (d) All fees or commissions; and
37 (e) The signature of the owner of the real estate or the owner's legal,
38 appointed and duly qualified representative, and the date of such signa-
39 ture.
40 (2) Buyer representation agreements. Each buyer representation agreement,
41 whether exclusive or nonexclusive, must contain the following provisions:
42 (a) Conspicuous and definite beginning and expiration dates;
43 (b) All financial obligations of the buyer or prospective buyer, if any,
44 including, but not limited to, fees or commissions;
45 (c) The manner in which any fee or commission will be paid to the broker;
46 and
47 (d) Appropriate signatures and their dates.
48 (3) Prohibited provisions and exceptions -- Automatic renewal clauses. No
49 buyer or seller representation agreement shall contain a provision requiring
50 the party signing the agreement to notify the broker of the party's intention
51 to cancel the agreement after the definite expiration date, unless the repre-
52 sentation agreement states that it is completely nonexclusive and it contains
53 no financial obligation, fee or commission due from the party signing the
21
1 agreement.
2 (4) Copies required. A broker or salesperson who obtains a written bro-
3 kerage representation agreement of any kind shall, at the time of securing
4 such agreement, give the person or persons signing such agreement, a legible,
5 signed, true and correct copy thereof. To the extent the parties have agreed
6 in writing, cCopies may be that are electronically generated or transmitted,
7 faxed or delivered in another method as long as the representation agreement
8 specifically allows for such transmission and the parties to the agreement
9 agree in writing to accept such copies or documents as shall be deemed true
10 and correct.
11 (5) Electronically generated agreements. To the extent the parties have
12 agreed in writing, bBrokerage representation agreements with a buyer or seller
13 may be that are electronically generated or transmitted, faxed or delivered in
14 another method as long as the representation agreement specifically allows for
15 such transmission and the parties to the representation agreement agree in
16 writing to accept such copies or documents as shall be deemed true and correct
17 and enforceable as originals.
18 SECTION 20. That Section 54-2052, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 54-2052. ELECTRONICALLY GENERATED AGREEMENTS. To the extent the parties
21 to the transaction have agreed in writing oOffers to purchase, counteroffers
22 and acceptances may be electronically generated or transmitted, faxed or
23 delivered in another method only if the representation agreement specifically
24 allows for such transmission and the parties to the representation agreement
25 agree in writing to accept such copies or documents as shall be deemed true
26 and correct and enforceable as originals.
27 SECTION 21. That Section 54-2056, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 54-2056. TERMINATING LICENSE BUSINESS RELATIONSHIPS. (1) Sales associate
30 terminating license with broker. Any sales associate who terminates his asso-
31 ciation with a broker and licenses with another broker shall immediately
32 return his wall license to the commission, along with the completed forms and
33 fees necessary for relicensing. If the sales associate is unable to obtain his
34 wall license from the broker, the sales associate shall send written notice of
35 his termination, by certified mail, return receipt requested, to the broker,
36 and shall deliver a copy of such notice to the commission. Upon receipt of
37 such notice from the sales associate, the broker shall immediately return the
38 sales associate's wall license to the commission.
39 (2) Broker terminating sales associate. Any broker who terminates the
40 association of a sales associate shall return the sales associate's wall
41 license along with a completed termination form to the commission.
42 (3) Any broker who terminates the association of a sales associate for
43 the violation of any of the provisions of sections 54-2059 through 54-2065,
44 Idaho Code, shall promptly notify the commission, in writing, of the termina-
45 tion and the facts giving rise to the termination.
46 (4) Closing a branch office. A written notice shall be sent to the com-
47 mission office along with the branch office license and the wall licenses of
48 all licensees licensed in the branch office immediately upon closing the
49 branch office.
50 (45) Property of the broker. Upon termination of the business relation-
51 ship as a sales associate licensed under a broker, the sales associate shall
22
1 immediately turn over to the broker all listing information and listing con-
2 tracts, keys, purchase and sale agreements and similar contracts, buyer bro-
3 kerage information and contracts, and other property belonging to the broker.
4 A sales associate shall not engage in any practice or conduct, directly or
5 indirectly, which encourages, entices or induces clients of the broker to ter-
6 minate any legal business relationship with the broker unless he first obtains
7 written permission of the broker.
8 (56) Location of trust accounts and file records. When an actively
9 licensed broker changes to a license status other than that of a designated
10 broker, that individual must notify the commission in writing of the location
11 of all trust accounts and transaction file records which the broker was
12 responsible for during the term of licensure as a designated broker. These
13 records shall be available to the commission for three (3) years following the
14 year in which each transaction was closed.
15 (67) Terminating relationships between a broker and a sole proprietorship
16 owned by a person other than the broker. When a broker for a sole proprietor-
17 ship, owned by a person other than the broker, terminates an association with
18 the owner, all records and trust account funds shall become the property of,
19 and be maintained and disbursed by, the terminating broker in accordance with
20 this chapter and applicable rules promulgated thereunder. The terminating bro-
21 ker shall deliver, upon request made in writing by the clients and the new
22 broker of that sole proprietorship, such records and trust account funds per-
23 taining to that client, to the new broker who shall thereafter have the
24 responsibility for preservation and disbursement, in accordance with this
25 chapter and applicable rules promulgated thereunder.
26 SECTION 22. That Section 54-2058, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 54-2058. AUTHORITY TO INVESTIGATE AND DISCIPLINE. (1) General authority
29 to investigate. The commission may investigate the action of any person
30 engaged in the business or acting in the capacity of real estate broker or
31 salesperson within the state of Idaho. The commission may initiate an investi-
32 gation at its own discretion or upon receipt of a written complaint from any-
33 one who claims to have been injured or defrauded as a result of such action.
34 A person is acting "within the state of Idaho" if that person is dealing
35 with any interest in real property or a business opportunity involving an
36 interest in real property, which is situated in this state, or is conducting
37 or attempting to conduct or solicit real estate business with residents of the
38 state of Idaho.
39 (2) Unlicensed persons. The commission also may investigate and file a
40 formal administrative complaint under this chapter against any person believed
41 to have acted as a real estate broker or salesperson without a license in
42 violation of section 54-2002, Idaho Code.
43 (3) Audits. The commission or its duly authorized representative is
44 vested with the authority to conduct periodic inspections, surveys and audits
45 of the transaction records and real estate trust accounts of all Idaho
46 licensed designated brokers. Any transaction records or real estate trust
47 account records located outside the state of Idaho shall promptly be made
48 available to the commission upon request at the licensee's own cost and at the
49 location or in the manner requested by the commission. If the analysis of a
50 broker's real estate trust account indicates a deficiency or any irregularity
51 which cannot be resolved between the commission and the broker, the commission
52 may order a complete audit of the trust account by a certified public accoun-
53 tant at the broker's expense.
23
1 (4) The commission or its staff also has the authority to investigate the
2 action of any Idaho licensee. The licensee or broker shall answer all reason-
3 able investigative questions of the commission or its staff, and must make
4 available, promptly upon request, any and all records to the commission at the
5 licensee's own cost and at the location or in the manner requested by the com-
6 mission.
7 SECTION 23. That Section 54-2061, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 54-2061. ADDITIONAL GROUNDS FOR DISCIPLINARY ACTION -- COURT ACTIONS --
10 LICENSEE TO REPORT TO COMMISSION. (1) The commission may also take disciplin-
11 ary action against a licensee including, but not limited to, suspension or
12 revocation of a license, where, in a court of competent jurisdiction, the
13 licensee:
14 (a) Has been convicted of a felony, or has been convicted of a misde-
15 meanor involving fraud, misrepresentation, or dishonest or dishonorable
16 dealing or which otherwise demonstrates the licensee's lack of trustwor-
17 thiness to engage in the real estate business;
18 (b) Has been declared to lack capacity or to be incompetent or under an
19 infirmity, for the duration of such declaration only;
20 (c) Has a judgment entered against the licensee in a civil action upon
21 grounds of fraud, misrepresentation, deceit or gross negligence with ref-
22 erence to a real estate-related transaction.
23 (2) The court's record of conviction, order determining legal competency,
24 or the order entering judgment in a civil case, or certified copies thereof,
25 shall be prima facie evidence of a conviction, or the court's action.
26 (3) A licensee who is convicted, declared legally incompetent, or who has
27 a judgment entered against him in a civil action as described in subsection
28 (1) of this section, shall, within twenty (20) days of such conviction, decla-
29 ration or judgment, forward to the commission a copy of the legal document
30 evidencing the same.
31 SECTION 24. That Section 54-2062, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 54-2062. ADDITIONAL GROUNDS FOR DISCIPLINARY ACTION -- OTHER ADMINISTRA-
34 TIVE ACTIONS -- LICENSEE TO REPORT TO COMMISSION. (1) The commission may also
35 take any disciplinary action, including, but not limited to, suspension or
36 revocation of a license where the licensee:
37 (1a) Has an order or determination of debarment, suspension, or any limi-
38 tation on participation in government loan programs issued against the
39 licensee for misconduct; or
40 (2b) Has a license, issued by another jurisdiction, suspended or revoked
41 for a disciplinary violation involving fraud, misrepresentation, or dis-
42 honest or dishonorable dealings. A certified copy of the order of the
43 administrative agency in the other jurisdiction shall be prima facie evi-
44 dence of the suspension or revocation.
45 (2) A licensee against whom a final administrative action has been taken,
46 as described in subsection (1) of this section, shall, within twenty (20) days
47 of such action, forward to the commission a copy of the legal document evi-
48 dencing the same.
49 SECTION 25. That Section 54-2085, Idaho Code, be, and the same is hereby
50 amended to read as follows:
24
1 54-2085. DISCLOSURE AND WRITING REQUIREMENTS -- AGENCY DISCLOSURE BRO-
2 CHURE AND REPRESENTATION CONFIRMATION. (1) A licensee shall give to a prospec-
3 tive buyer or seller at the first substantial business contact the agency dis-
4 closure brochure established adopted or approved by the Idaho real estate com-
5 mission. The commission by rule motion shall establish the form and contents
6 of the brochure in accordance with the provisions of this act chapter. Each
7 brokerage shall keep an initialed a signed and dated record of a buyer or
8 seller's receipt of the agency disclosure brochure.
9 (2) The agency disclosure brochure shall list the types of representation
10 available to a buyer or seller in a regulated real estate transaction, the
11 legal duties and obligations owed to the buyer or seller in each type of rep-
12 resentation and a conspicuous notice that no representation will exist absent
13 a written agreement between the buyer or seller and the brokerage.
14 (3) A brokerage's relationship with a buyer and seller as an agent,
15 nonagent, or limited dual agent must be determined and all necessary agree-
16 ments executed no later than the preparation of a purchase and sale agreement.
17 A brokerage must disclose its relationship to both buyer and seller in any
18 transaction no later than the preparation or presentation of a purchase and
19 sale agreement.
20 (4) In addition, a purchase and sale agreement or other document drafted
21 in connection with a real estate transaction shall contain the following con-
22 firmation of the relationship, whether it involved representation or not,
23 between the buyer, seller and licensees involved:
24 REPRESENTATION CONFIRMATION
25 In this transaction, the brokerage(s) involved had the following
26 relationship(s) with the BUYER ("agent" or "nonagent" or "limited
27 dual agent"):
28 Listing broker acted as a(n) ................ for the buyer.
29 Selling broker acted as a(n) ................ for the buyer.
30 In this transaction, the brokerage(s) involved had the following
31 relationship(s) with the SELLER ("agent" or "nonagent" or "limited
32 dual agent"):
33 Listing broker acted as a(n) ................ for the seller.
34 Selling broker acted as a(n) ................ for the seller.
35 Each party signing this document confirms that he or she has
36 received, read and understood the Agency Disclosure Brochure and has
37 elected the relationship confirmed above. In addition, each party
38 confirms that the broker's agency office policy was made available
39 for inspection and review. EACH PARTY UNDERSTANDS THAT HE OR SHE IS A
40 "CUSTOMER" AND IS NOT REPRESENTED BY A BROKER UNLESS THERE IS A
41 SIGNED WRITTEN AGREEMENT FOR AGENCY REPRESENTATION.
42 (5) The failure of a licensee to timely give a buyer or seller the agency
43 disclosure brochure or the failure of a licensee to properly and timely obtain
44 any written agreement or confirmation required by this act shall be a viola-
45 tion of the Idaho real estate license law and may subject the licensee to dis-
46 ciplinary action according to the provisions of sections 54-2058 through
47 54-2078, Idaho Code.
48 (6) Neither the commission brochure nor the representation confirmation
49 shall create a brokerage relationship. A separate, signed, written agreement
50 is required for that purpose.
51 SECTION 26. That Section 54-2087, Idaho Code, be, and the same is hereby
52 amended to read as follows:
25
1 54-2087. DUTIES TO A CLIENT. If a buyer or seller enters into a written
2 contract for representation in a regulated real estate transaction, that buyer
3 or seller becomes a client to whom the brokerage and its licensees owe the
4 following agency duties and obligations:
5 (1) To perform the terms of the written agreement with the client;
6 (2) To exercise reasonable skill and care;
7 (3) To promote the best interests of the client in good faith, honesty
8 and fair dealing including, but not limited to:
9 (a) Disclosing to the client all adverse material facts actually known or
10 which reasonably should have been known by the licensee;
11 (b) Seeking a buyer to purchase the seller's property at a price, and
12 under terms and conditions acceptable to the seller and assisting in the
13 negotiation therefor; or
14 (c) Seeking a property for purchase at a price and under terms and condi-
15 tions acceptable to the buyer and assisting in the negotiation therefor;
16 (d) For the benefit of a client/buyer: conducting a reasonable investiga-
17 tion of the property and material representations about the property made
18 by the seller or seller's agent, or when appropriate, advising the client
19 to obtain professional inspections of the property or to seek appropriate
20 tax, legal and other professional advice or counsel;
21 (e) For the benefit of a client/seller: requesting reasonable proof of a
22 prospective buyer's financial ability to purchase the real property which
23 is the subject matter of the transaction. This duty may be satisfied by
24 any appropriate method suitable to the transaction or, when deemed neces-
25 sary by the real estate licensee, by advising the client to consult with
26 an accountant, lawyer, or other professional as dictated by the transac-
27 tion.
28 (4) To maintain the confidentiality of specific client information as
29 defined by and to the extent required in this act.
30 (5) To properly account for moneys or property placed in the care and
31 responsibility of the brokerage; and
32 (5) To maintain the confidentiality of specific client information as
33 defined by and to the extent required in this chapter, and as follows:
34 (a) The duty to a client continues beyond the termination of representa-
35 tion only so long as the information continues to be confidential client
36 information as defined in this chapter, and only so long as the informa-
37 tion does not become generally known in the marketing community from a
38 source other than the brokerage or its affiliated licensees;
39 (b) A licensee who personally has gained confidential client information
40 about a buyer or seller while associated with one (1) broker and who later
41 affiliates with a different broker remains obligated to maintain the cli-
42 ent confidentiality as required by this chapter;
43 (c) If a brokerage represents a buyer or seller whose interests conflict
44 with those of a former client, the brokerage shall inform the second cli-
45 ent of the broker's prior representation of the former client and that
46 confidential client information obtained during the first representation
47 cannot be given to the second client. Nothing in this section shall pre-
48 vent the brokerage from asking the former client for permission to release
49 such information;
50 (d) Nothing in this section is intended to create a privileged communica-
51 tion between any client and any brokerage or licensee for purposes of
52 civil, criminal or administrative legal proceedings.
STATEMENT OF PURPOSE
RS 10519C1
This is a housekeeping, general clean-up bill following the
comprehensive re-codification of the Real Estate License Law,
SB1312, enacted last year. In accordance with the vision and intent
of SB1312, this bill will, for the most part, move most of the
remaining administrative rules to their proper place in the new
statute. A few changes are made to clarify ambiguous language and
bring about the original intent of SB1312.
FISCAL IMPACT
None to the General Fund, as no general fund dollars are used by
IREC.
None to any political subdivisions, as IREC is funded primarily from
license fees.
None to the Agency.
CONTACT
Name: Donna M. Jones
Agency: Idaho Real Estate Commission
Phone: 334-3285 ext.232
STATEMENT OF PURPOSE/FISCAL NOTE S 1051