View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
S1047..........................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSEES - Amends existing law to require compliance with chapter
provisions by active licensees involved in transactions related to mobile
homes, manufactured homes or floating homes; to require certificates of
insurance coverage; to specify that fees are nonrefundable; to revise
instructor recertification requirements; and to amend permissible
compensation, commission and fees.
01/31 Senate intro - 1st rdg - to printing
02/03 Rpt prt - to Com/HuRes
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/20 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai(Ellis), McKenzie,
McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Sorensen,
Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Burkett, Marley
Floor Sponsor - Compton
Title apvd - to House
02/21 House intro - 1st rdg - to Bus
02/28 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/04 3rd rdg - PASSED - 65-1-4
AYES -- Andersen, Barraclough, Bauer, Bedke, Bell, Bieter, Black, Block,
Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Deal, Denney,
Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Lake,
Langford, Langhorst, Martinez, McGeachin, McKague, Meyer, Miller,
Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo,
Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
Trail, Wills, Mr. Speaker
NAYS -- Kulczyk
Absent and excused -- Barrett, Crow, Cuddy, Wood
Floor Sponsor - Snodgrass
Title apvd - to Senate
03/05 To enrol
03/06 Rpt enrol - Pres signed
03/07 Sp signed
03/10 To Governor
03/13 Governor signed
Session Law Chapter 65
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE SENATE
SENATE BILL NO. 1047
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2003, IDAHO
3 CODE, TO PROVIDE DESCRIPTIVE LANGUAGE AND TO REQUIRE ACTIVE LICENSEES WHO
4 SELL, LIST, BUY OR NEGOTIATE OR OFFER TO SELL, LIST, BUY OR NEGOTIATE THE
5 PURCHASE OR SALE OF A MOBILE HOME, MANUFACTURED HOME OR FLOATING HOME ON
6 BEHALF OF ANOTHER FOR COMPENSATION OR THE PROMISE OR EXPECTATION OF COM-
7 PENSATION SHALL COMPLY WITH IDAHO REAL ESTATE LICENSE LAW REGARDLESS OF
8 WHETHER THE ACTIVITY WOULD OTHERWISE REQUIRE AN IDAHO REAL ESTATE LICENSE;
9 AMENDING SECTION 54-2013, IDAHO CODE, TO PROVIDE THAT LICENSEES SEEKING TO
10 OBTAIN OR RENEW ACTIVE LICENSES SHALL CERTIFY COMPLIANCE WITH INSURANCE
11 REQUIREMENTS, TO PROVIDE THAT LICENSEES NOT PARTICIPATING IN THE
12 COMMISSION'S INSURANCE PROGRAM SHALL OBTAIN A CERTIFICATE OF COVERAGE AND
13 TO REQUIRE THE PRODUCTION OF THE CERTIFICATE FOR INSPECTION UPON REQUEST;
14 AMENDING SECTION 54-2018, IDAHO CODE, TO PROVIDE THAT FEES ARE NONREFUND-
15 ABLE AFTER A LICENSE OR LICENSE CHANGE HAS BECOME EFFECTIVE; AMENDING SEC-
16 TION 54-2023, IDAHO CODE, TO REVISE CONTINUING EDUCATION REQUIREMENTS
17 RELATING TO DUPLICATE CREDIT; AMENDING SECTION 54-2035, IDAHO CODE, TO
18 DELETE LANGUAGE RELATING TO CERTIFICATION MAINTENANCE REQUIREMENTS AND TO
19 REVISE RECERTIFICATION REQUIREMENTS; AMENDING SECTION 54-2054, IDAHO CODE,
20 TO CLARIFY THAT THE PAYMENT OF COMMISSIONS, FEES OR COMPENSATION BY A BRO-
21 KER TO A LEGAL BUSINESS ENTITY WHOSE SHAREHOLDERS, MEMBERS OR OTHER PER-
22 SONS HAVING SIMILAR OWNERSHIP INTEREST ARE ALL ACTIVE REAL ESTATE LICEN-
23 SEES IS NOT PROHIBITED AND TO PROVIDE THAT SALES ASSOCIATES MAY PAY COM-
24 MISSIONS, COMPENSATION OR FEES TO OTHER SALES ASSOCIATES LICENSED WITH THE
25 SAME BROKER IF AUTHORIZED BY THE BROKER; AND AMENDING SECTION 54-2055,
26 IDAHO CODE, TO CLARIFY THAT ACTIVE LICENSEES MUST CONDUCT CERTAIN TRANSAC-
27 TIONS THROUGH THE BROKER WITH WHOM THEY ARE LICENSED.
28 Be It Enacted by the Legislature of the State of Idaho:
29 SECTION 1. That Section 54-2003, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 54-2003. EXCEPTIONS TO LICENSURE -- ACTIVE LICENSEES -- TRANSACTIONS
32 INVOLVING PERSONAL PROPERTY. (1) Exceptions to licensure. Except as otherwise
33 stated below, an Idaho real estate license is not required for the following:
34 (a) The purchase, option, exchange or sale of any interest in real prop-
35 erty, or business opportunity for a person's own account or use;
36 (b) The acquisition, exchange or other disposition of any interest in
37 real property or business opportunity by its owner or a regular employee
38 of the owner, acting within the scope of his or her employment;
39 (c) The sale, exchange, purchase or other disposition of any interest in
40 real property or business opportunity by a duly authorized attorney in
41 fact whose power of attorney is granted for the purpose of consummating a
42 single transaction involving the conveyance of a single or undivided
43 interest in a parcel of real property or in a business opportunity;
2
1 (d) The acquisition or other disposition of any interest in real property
2 or business opportunity by the following parties only if such acquisition
3 or disposition is undertaken in the performance of their duties as:
4 (i) A receiver, trustee in bankruptcy, legal guardian or conserva-
5 tor;
6 (ii) An administrator, executor or personal representative of an
7 estate;
8 (iii) Any person selling pursuant to the default provisions of a deed
9 of trust, or any duly authorized agent thereof.
10 (e) The acquisition or other disposition of any interest in real property
11 or business opportunity by an attorney at law in connection with client
12 representation, and if the attorney is not regularly engaged in the con-
13 duct or business of real estate broker or salesperson.
14 (2) Active real estate licensees. An actively licensed real estate bro-
15 ker, associate broker or salesperson must comply with this chapter, regardless
16 of whether the licensee otherwise qualifies for any of the exceptions of sub-
17 section (1) of this section.
18 (3) Transactions involving personal property. An active licensee who,
19 while acting on behalf of another, for compensation or for a promise or expec-
20 tation of compensation, sells, lists, buys or negotiates, or offers to sell,
21 list, buy or negotiate, the purchase or sale of a mobile home, manufactured
22 home or floating home as defined by Idaho law, shall comply with this chapter
23 regardless of whether such activity would otherwise require an Idaho real
24 estate license.
25 (4) Exceptions to licensure shall not be used in any way to evade the
26 purposes of this chapter. Any such attempt to evade this chapter shall be con-
27 sidered the unlicensed and unlawful practice of real estate.
28 SECTION 2. That Section 54-2013, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 54-2013. ERRORS AND OMISSIONS INSURANCE. (1) Each licensee who is activ-
31 ely licensed under this chapter shall, as a condition to licensing, carry and
32 maintain errors and omissions insurance to cover all licensed activities under
33 the provisions of this chapter.
34 (2) The commission shall make the insurance required under the provisions
35 of this section available to each licensee by contracting with an insurance
36 provider for errors and omissions insurance coverage for each licensee after
37 competitive, sealed bidding in accordance with chapter 57, title 67, Idaho
38 Code. The exact premium shall be set by the commission by motion.
39 (3) Any policy obtained by the commission shall be available to each
40 licensee with no right on the part of the insurance provider to cancel cover-
41 age for any licensee.
42 (4) Each licensee shall have the option of obtaining errors and omissions
43 insurance independently, if the coverage contained in an independently
44 obtained policy complies with the minimum requirements established by the com-
45 mission.
46 (5) The commission shall determine the terms and conditions of coverage
47 required under the provisions of this section including, but not limited to,
48 the minimum limits of coverage, the permissible deductible and the permissible
49 exemptions.
50 (6) A certificate of coverage, showing compliance with the required terms
51 and conditions of coverage, shall be filed with the commission ten (10) days
52 prior to the license renewal date by each A licensee seeking to obtain or
53 renew an active license shall certify to the commission that he is in compli-
3
1 ance with the insurance requirements of this section. A licensee who elects
2 not to participate in the insurance program administered by the commission
3 shall obtain a certificate of coverage, signed by an authorized agent or
4 employee of the insurance carrier, reflecting proof of insurance meeting the
5 requirements established by the commission. Upon request by the commission the
6 licensee shall produce the certificate for inspection.
7 (7) If the commission is unable to obtain errors and omissions insurance
8 coverage to insure all licensees who choose to participate in the insurance
9 program at a reasonable premium, not to exceed one hundred forty dollars
10 ($140) per year, per licensee, the requirement of insurance coverage as pro-
11 vided in this section shall be void during the applicable contract period.
12 (8) The commission is also specifically empowered to charge and collect
13 an administrative fee in addition to the premium paid from each licensee who
14 obtains errors and omissions insurance through the commission contract, which
15 fee shall not exceed ten dollars ($10.00) per licensee. This administrative
16 fee shall be of an amount sufficient to raise that revenue required to admin-
17 ister the provisions of this section. The limit in subsection (7) of this sec-
18 tion applies only to premium cost and not to any administrative fee charged.
19 SECTION 3. That Section 54-2018, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
22 -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
23 license shall be for a period of one (1) year plus the months up to and
24 including the next birth date of the licensee, not to exceed a period of two
25 (2) years, and shall expire on a date to coincide with the last day of the
26 month of the birth date of the licensee. Corporations, partnerships, limited
27 liability companies and other entities defined as "persons" in this chapter
28 shall have established as the equivalent of a birth date, the birth date of
29 its designated broker. Licensed branch offices shall have established as the
30 equivalent of a birth date, the birth date of the real estate broker estab-
31 lishing the branch office.
32 (2) License renewal. Each license shall be renewable for a period of two
33 (2) years by timely submitting a completed application,. Applications must be
34 received at the commission office on or before 5 p.m. of the expiration date.
35 (a) If renewing an active license, the application shall include:
36 (i) Evidence of having met the commission's continuing education
37 requirements as set forth in section 54-2023, Idaho Code;
38 (ii) Proof of meeting the mandatory errors and omissions insurance
39 requirement for real estate licensees as set forth in section
40 54-2013, Idaho Code; and
41 (iii) Payment of all renewal fees established by this chapter or by
42 the commission.
43 (b) If renewing an inactive license, the application shall include pay-
44 ment of all renewal fees established by this chapter or by the commission
45 by rule.
46 (3) Late renewal. If the licensee fails to submit a completed application
47 for renewal or pay the renewal fee on or before the expiration date, the com-
48 mission may accept a later application or payment of the fee, subject to such
49 conditions as the commission may require including, but not limited to, the
50 assessment of a late fee; provided that between the license expiration date
51 and the date of renewal of the license, the rights of the licensee under such
52 license shall be expired, and during such period of expiration it shall be
53 unlawful for any licensee to do or attempt to offer to do any of the acts of
4
1 the kind and nature described in the definitions of real estate broker or real
2 estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
3 sation of any kind or expectation thereof. An expired license that is not
4 renewed within one (1) year of the expiration date shall be automatically ter-
5 minated by the commission and may not be renewed.
6 (4) Active and inactive license status. A licensee who is a designated
7 broker or associated with a designated broker shall hold an active license. A
8 licensee who has paid all applicable fees, who is not associated with a desig-
9 nated broker and who holds a current license that is not revoked, suspended
10 or terminated shall hold his license on inactive status. A licensee seeking to
11 change from active license status to inactive license status shall have the
12 broker submit a change of status application to the commission in the form and
13 manner approved by the commission. During the period that his license is inac-
14 tive, the licensee shall not engage in the business or act in the capacity of
15 real estate broker, associate broker or salesperson. However, an inactive
16 licensee may receive a referral fee for any referral made during the period
17 his license was active. A licensee may reactivate an inactive license by meet-
18 ing each of the following:
19 (a) If activating as a sales associate, associating with a designated
20 Idaho broker and having the broker submit an application in the form and
21 manner approved by the commission;
22 (b) If activating as a designated broker, establishing an office in the
23 manner required by this chapter and submitting an application in the form
24 and manner approved by the commission;
25 (c) Paying the required fee;
26 (d) Providing evidence of having errors or omissions insurance in the
27 manner required by section 54-2013, Idaho Code, and in accordance with the
28 rules of the commission; and
29 (e) Providing evidence of having successfully completed the continuing
30 education requirements, as prescribed in section 54-2023, Idaho Code. A
31 continuing education course taken to make up a deficiency of the require-
32 ments from the previous renewal period may be applied toward the continu-
33 ing education requirements for the current period.
34 (5) Change in personal information. An individual licensee, whether
35 active or inactive, shall provide written notice to the commission, in the
36 form and manner approved by the commission, of any change of his personal
37 name, address of personal residence or personal telephone number. Notice shall
38 be provided within ten (10) days of the change. If the licensee has changed
39 his personal name, he shall also submit legal proof of the change and the fee
40 for issuing a new license certificate and, if an active licensee, he shall
41 have the broker submit the written notice of change to the commission. Upon
42 receipt of the new license certificate or upon its effective date, whichever
43 is later, the broker shall remove from public view any license certificate
44 bearing the licensee's former name.
45 (6) Signature required. No license shall be valid unless the license cer-
46 tificate is signed by the licensee.
47 (7) Effective dates. A request for licensure or for license changes shall
48 become effective when the properly completed application, attachments and any
49 required fee are received at and approved by the commission. An application
50 that is incomplete or lacking proper fees shall be returned to the applicant
51 and no license shall be issued until a completed application and proper fees
52 are received at and actually approved by the commission.
53 (8) Fees nonrefundable. No licensee shall be entitled to a refund of any
54 fee after the license or license change has become effective.
5
1 SECTION 4. That Section 54-2023, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
4 of an Idaho real estate license on active status, and each Idaho licensee
5 seeking to change from inactive to active license status, shall submit satis-
6 factory proof to the commission of having successfully completed the required
7 number of classroom hours of commission-approved or certified continuing edu-
8 cation coursework as provided in this section, plus one (1) commission-
9 approved core course. Failure to provide proof of meeting the continuing edu-
10 cation requirements as set forth in this section constitutes an incomplete
11 application for a renewal of an active license or for a change in license sta-
12 tus from inactive to active, and, as such, constitutes grounds for denial of
13 the application.
14 (1) Required number of classroom hours. The required number of classroom
15 hours are as follows:
16 (a) Renewing active license. A licensee renewing on active status effec-
17 tive prior to July 1, 2003, must successfully complete at least eight (8)
18 classroom hours of continuing education on or before the license expira-
19 tion date. A licensee renewing on active status effective on or after July
20 1, 2003, must successfully complete at least sixteen (16) classroom hours
21 of continuing education on or before the license expiration date.
22 (b) Change from inactive to active. A licensee changing from inactive to
23 active status effective prior to July 1, 2003, must successfully complete
24 at least eight (8) classroom hours of continuing education during the cur-
25 rent inactive license period. A licensee changing from inactive to active
26 status effective on or after July 1, 2003, must successfully complete at
27 least sixteen (16) classroom hours of continuing education during the cur-
28 rent inactive license period.
29 (2) No duplicate credit. Credit for completion of any approved continuing
30 education course curriculum will not be granted twice within the same license
31 period No licensee may obtain continuing education credit for completing:
32 (a) Any core course curriculum for which he has previously received con-
33 tinuing education credit; or
34 (b) Any course curriculum for which he has received continuing education
35 credit in the same license period.
36 (3) Excess credits. The classroom hours shall apply to the license period
37 in which such course is completed; hours completed in excess of those required
38 for the license period shall not accumulate or be credited for the purposes of
39 subsequent license renewal periods.
40 (4) Commission-ordered education. No licensee shall obtain continuing
41 education credit for education ordered by the commission as part of a disci-
42 plinary action.
43 (5) Obtaining continuing education classroom hours. In order to obtain
44 continuing education classroom hours, a licensee may:
45 (a) Successfully complete a commission-approved continuing education
46 course;
47 (b) Successfully complete a commission-approved continuing education
48 challenge exam;
49 (c) Attend an entire regularly-scheduled meeting of the commission. The
50 licensee shall provide at least seven (7) days' advance notice to the edu-
51 cation section of the commission of his intent to attend the meeting.
52 Failure to provide advance notice shall result in no continuing education
53 hours being credited. A maximum of three (3) hours for this activity shall
54 be credited for any one (1) meeting in any one (1) license period;
6
1 (d) Successfully complete a commission-approved broker prelicense course,
2 or a commission-approved continuing education challenge exam, in advanced
3 real estate study. Continuing education credit may be obtained for retak-
4 ing the same broker prelicense course or challenge exam only if completed
5 after five (5) years of completing the previous course or challenge exam;
6 or
7 (e) Provide to the commission a transcript or course completion certifi-
8 cate of successful completion of any of the following courses, in accor-
9 dance with all of the continuing education requirements of this section,
10 without commission preapproval of the curriculum, instructors or
11 providers:
12 (i) Courses developed by national professional organizations that
13 are required in order to earn professional designations from a
14 national organization in specialized areas of licensed real estate
15 practice; and
16 (ii) Courses approved by and offered in satisfaction of another pro-
17 fessional or occupational licensing authority's education require-
18 ments, if within the approved topic areas established by the commis-
19 sion.
20 (6) Provisional license -- Extension of time. A three-month extension of
21 time for completing the education requirements may be obtained by submitting
22 with the renewal application, or application to activate, satisfactory evi-
23 dence showing that the applicant was unable to comply with such education
24 requirements. Such evidence may be:
25 (a) Bona fide hardship preventing completion of the reinstatement
26 requirements of an inactive license;
27 (b) Health reasons preventing attendance or completion;
28 (c) Active duty in the military service with assignment to a permanent
29 duty station outside of the state during the last twelve (12) months of a
30 license period; or
31 (d) Other compelling cause beyond the control of the applicant while
32 engaged in the real estate business.
33 If such an extension is granted, the licensee shall receive a provisional
34 license for a period of time not to exceed three (3) months. No further exten-
35 sion of time may be granted. A license issued or renewed after an extension of
36 time has been granted shall retain the original license expiration date. Fail-
37 ure to satisfy the continuing education requirement within the time granted
38 shall result in the automatic inactivation of the license.
39 SECTION 5. That Section 54-2035, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 54-2035. TERM OF INSTRUCTOR CERTIFICATION AND RENEWAL. (1) Certification.
42 Each instructor certification issued by the commission shall be for a term of
43 two (2) years. The exact expiration date will be shown on the instructor cer-
44 tificate. In order to maintain certification, each instructor shall:
45 (a) Return a properly completed renewal application on a form provided by
46 the commission, along with all necessary attachments and renewal fees to
47 the commission office prior to the expiration date, for commission
48 approval;
49 (b) Have taught, or assistant taught during the preceding two (2) years
50 at least twenty (20) hours of each council certified course for which the
51 instructor wishes to continue to be certified; and
52 (c) Have attended a commission-sponsored instructor development seminar
53 or received other acceptable training in methods of teaching adults during
7
1 the preceding two (2) years.
2 (2) Recertification.
3 (a) In order to be recertified, each instructor shall:
4 (i) Return a properly completed recertification application on a
5 form provided by the commission, along with all necessary attachments
6 and fees, to the commission office prior to the expiration date for
7 commission approval;
8 (ii) Have adequately taught or assistant taught, during the preced-
9 ing two (2) years, at least twenty (20) hours of each course for
10 which recertification is sought. The adequacy of instructor teaching
11 performance shall be determined by the commission based upon any or
12 all of the following:
13 1. Evaluations received from students;
14 2. Direct observation of the instructor's performance by a com-
15 mission representative; or
16 3. Review of the outline and reference materials provided for
17 the course; and
18 (iii) Have attended a commission-sponsored instructor development
19 seminar or received other acceptable training in methods of teaching
20 adults during the preceding two (2) years.
21 (b) Recertification shall not be effective until the commission formally
22 approves the application for renewal. An instructor's failure to obtain
23 approved recertification prior to the expiration of the certification will
24 result in no credit being given for any course taught by the instructor
25 whose certification has expired prior to conclusion of the course.
26 SECTION 6. That Section 54-2054, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 54-2054. COMPENSATION, COMMISSIONS AND FEES -- PROHIBITED CONDUCT. (1)
29 Court action for fee collection. No person engaged in the business or acting
30 in the capacity of real estate broker or salesperson in Idaho shall bring or
31 maintain any action in the courts for the collection of a fee, commission or
32 other compensation for the performance of any acts requiring a real estate
33 license as provided in section 54-2002, Idaho Code, without alleging and prov-
34 ing that such person was an actively licensed broker or salesperson in Idaho
35 at the time the alleged cause of action arose.
36 (2) Fee-splitting with unlicensed persons prohibited. Unless otherwise
37 allowed by statute or rule, a real estate broker, associate broker or
38 salesperson licensed in the state of Idaho shall not pay any part or share of
39 a commission, fee or compensation received in the licensee's capacity as such
40 in a regulated real estate transaction to any person who is not actively
41 licensed as a real estate broker in Idaho or in another state or jurisdiction.
42 The Idaho broker making the payment to another licensed person is responsible
43 for verifying the active licensed status of the receiving broker. This section
44 shall not prohibit payment of a part or share of a commission, fee or compen-
45 sation by the broker to a corporation legal business entity, all of whose
46 shareholders, and directors members or other persons having a similar owner-
47 ship interest are active real estate licensees. An Idaho licensee may pay any
48 part or share of a commission, fee or compensation received, directly to the
49 buyer or seller in the real estate transaction. However, no commission, fee or
50 compensation may be split with any party to the transaction in a manner which
51 would directly or indirectly create a double contract, as defined in this
52 chapter, or which would otherwise mislead any broker, lender, title company or
53 government agency involved in the transaction regarding the source of funds
8
1 used to complete the real estate transaction or regarding the financial
2 resources or obligations of the buyer.
3 (3) Finder's fees prohibited. Any offer of monetary value, by an Idaho
4 licensee, to any person who is not licensed in Idaho or any state or jurisdic-
5 tion, made for the purpose of inducing such unlicensed person to secure pros-
6 pects to buy, sell, option, or otherwise dispose of an interest in real prop-
7 erty shall be considered to be splitting fees with an unlicensed person, and
8 is prohibited.
9 (4) Interference with real estate brokerage agreement prohibited. It
10 shall be unlawful for any person, licensed or unlicensed, to interfere with
11 the contractual relationship between a broker and a client. Communicating a
12 company's relocation policy or benefits to a transferring employee or consumer
13 shall not be considered a violation of this subsection so long as the communi-
14 cation does not involve advice or encouragement on how to terminate or amend
15 an existing contractual relationship between a broker and client.
16 (5) Double contracts prohibited. No licensed broker or salesperson shall
17 use, propose the use of, agree to the use of, or knowingly permit the use of a
18 double contract, as defined in section 54-2004, Idaho Code, in connection with
19 any regulated real estate transaction. Such conduct by a licensee shall be
20 deemed flagrant misconduct and dishonorable and dishonest dealing and shall
21 subject the licensee to disciplinary action by the commission.
22 (6) Kickbacks and rebates prohibited. No licensed real estate broker or
23 salesperson shall receive a kickback or rebate for directing any transaction
24 to any individual for financing. A licensee shall not receive a kickback or
25 unearned fee for directing any transaction to any lending institution, escrow
26 or title company, as those practices are defined and prohibited by the real
27 estate settlement procedures act. However, a licensee legally receiving any
28 fee or rebate from any person providing direct services to either the buyer or
29 the seller in connection with a regulated real estate transaction is required
30 to disclose the licensee's intent to receive such fee, rebate or compensation
31 in writing to all parties to the transaction prior to closing.
32 (7) Compensation from more than one party. No licensed real estate broker
33 or salesperson shall charge or accept compensation from more than one (1)
34 party in any one (1) transaction, without first making full disclosure in
35 writing of the broker's intent to do so, to all parties involved in the trans-
36 action.
37 (8) After-the-fact referral fees prohibited. It shall be unlawful for any
38 person to solicit or request a referral fee or similar payment from a licensed
39 Idaho real estate broker or sales associate, for the referral of a buyer or
40 seller in connection with a regulated real estate transaction, unless the per-
41 son seeking the referral fee has reasonable cause. "Reasonable cause" shall
42 not exist unless:
43 (a) The person seeking the referral fee has a written contractual rela-
44 tionship with the Idaho real estate broker for a referral fee or similar
45 payment; and
46 (b) The contractual relationship providing for the referral fee exists at
47 the time the buyer or seller purportedly referred by such person signs a
48 written agreement with the Idaho broker for the listing of the real estate
49 or for representation by the broker, or the buyer signs an offer to pur-
50 chase the real estate involved in the transaction. It shall be unlawful
51 for any person including, but not limited to, a relocation company or com-
52 pany with a relocation policy or benefits, to directly or indirectly
53 threaten to or actually reduce or withhold promised or expected employee
54 or customer relocation benefits from a buyer or seller in a regulated real
55 estate transaction based upon a broker's participation in payment of a
9
1 referral fee or other fee.
2 (9) All fees must be paid through broker. No sales associate shall accept
3 any commission, compensation or fee for the performance of any acts requiring
4 a real estate license from any person except the real estate broker with whom
5 the sales associate is licensed. However, if authorized by the broker, a sales
6 associate may pay all or any portion of the accepted commission, compensation
7 or fee to any other sales associate who is licensed with the same broker. Aa
8 broker may pay a former sales associate for services performed while the sales
9 associate was actively licensed with that broker, regardless of the former
10 sales associate's license status at the time the commission or fee is actually
11 paid.
12 SECTION 7. That Section 54-2055, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 54-2055. LICENSEES DEALING WITH THEIR OWN PROPERTY. (1) Any actively
15 licensed Idaho broker, sales associate, or legal business entity shall comply
16 with this entire chapter when that licensee is buying, selling or otherwise
17 acquiring or disposing of the licensee's own interest in real property in a
18 regulated real estate transaction.
19 (2) A licensee shall disclose in writing to any buyer or seller that the
20 licensee holds an active Idaho real estate license, if the licensee directly,
21 indirectly, or through a third party, sells or purchases an interest in real
22 property for personal use or any other purpose; or acquires or intends to
23 acquire any interest in real property or any option to purchase real property.
24 (3) Each actively licensed person buying or selling real property or any
25 interest therein, in a regulated real estate transaction, must conduct the
26 transaction through an actively licensed responsible the broker with whom he
27 is licensed, whether or not the property is listed.
STATEMENT OF PURPOSE
RS 12346C1
This is a housekeeping bill, and includes the following amendments
to chapter 20, Title 54: Section 54-2003(3), adding back into law
the requirement that brokerages transacting in mobile homes, motor
homes or floating homes comply with the License Law; Section 54-
2013(6), allowing for "self-certification" of compliance with
insurance requirement; Section 54-2018(8), clarifying that a
licensee will not receive a refund if license is terminated; 54-
2023(2) clarifying that the licensee will not receive continuing
education credit for taking same course in same license period;
Section 54-2035, codifying long-standing written policy on
certification of instructors, and reorganizing the section;
authorizing direct payment of fee or commission by sales associate
to his licensed sales assistants; Section 54-2055(3), and requiring
that active licensees conduct personal real estate transactions
through the broker with whom they are licensed.
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: Real Estate
Phone: 334-3285 ext 232
Statement of Purpose/Fiscal Impact S 1047