Print Friendly SENATE BILL NO. 1010 – Real estate license law, misc amens
SENATE BILL NO. 1010
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S1010.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE LAW - Amends the Idaho Real Estate License Law to
revise definitions; to revise the minimum requirements for an individual
primary Idaho license; to require the display or public availability of
certain certificates; to require that continuing education credit hours be
obtained prior to the submission of license applications; to provide for
disciplinary action by the Real Estate Commission; to provide that the Real
Estate Commission may request proof of continuing education compliance; to
specify continuing education documentation requirements; to provide for the
inactivation of licenses; to revise provisions applicable to continuing
education requirements; to revise certification requirements; to revise the
duties and requirements of certified course providers; to revise provisions
applicable to certification of courses and course content; to remove the
requirement that trust accounts be established at depositories located in
Idaho; to revise provisions applicable to terminating or changing licensed
business relationships; and to revise the grounds for disciplinary action.
01/14 Senate intro - 1st rdg - to printing
01/17 Rpt prt - to Com/HuRes
01/26 Rpt out - rec d/p - to 2nd rdg
01/27 2nd rdg - to 3rd rdg
02/04 3rd rdg - PASSED - 31-0-4
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Gannon,
Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
Stennett, Sweet, Werk, Williams(Williams)
NAYS -- None
Absent and excused -- Davis, Lodge, Noble, Pearce
Floor Sponsor - Broadsword
Title apvd - to House
02/07 House intro - 1st rdg - to Bus
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 64-1-5
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
Chadderdon, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson), Harwood,
Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Martinez, Mathews,
McGeachin, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart,
Pence, Ring, Ringo, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- McKague
Absent and excused -- Clark, Henbest, Loertscher, Raybould, Roberts
Floor Sponsor - Miller
Title apvd - to Senate
03/16 To enrol
03/17 Rpt enrol - Pres signed
03/18 Sp signed
03/21 To Governor
03/23 Governor signed
Session Law Chapter 107
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1010
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2004, IDAHO
3 CODE, TO REVISE DEFINITIONS; AMENDING SECTION 54-2012, IDAHO CODE, TO
4 REVISE THE MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE;
5 AMENDING SECTION 54-2016, IDAHO CODE, TO REQUIRE THAT CURRENT LICENSE CER-
6 TIFICATES FOR BRANCH OFFICES, BRANCH MANAGERS AND SALES ASSOCIATES BE
7 PROMINENTLY DISPLAYED OR AVAILABLE FOR PUBLIC INSPECTION AT THE BRANCH
8 OFFICE; AMENDING SECTION 54-2018, IDAHO CODE, TO REQUIRE THAT CONTINUING
9 EDUCATION CREDIT HOURS BE OBTAINED PRIOR TO THE SUBMISSION OF LICENSE
10 APPLICATIONS, TO PROVIDE FOR DISCIPLINARY ACTION BY THE COMMISSION, TO
11 PROVIDE THAT THE COMMISSION MAY REQUEST PROOF OF CONTINUING EDUCATION COM-
12 PLIANCE, TO SPECIFY CONTINUING EDUCATION DOCUMENTATION REQUIREMENTS AND TO
13 LIMIT APPLICATION; AMENDING SECTION 54-2019, IDAHO CODE, TO PROVIDE FOR
14 THE INACTIVATION OF LICENSES BY THE COMMISSION; AMENDING SECTION 54-2023,
15 IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO CONTINUING EDUCATION
16 REQUIREMENTS; AMENDING SECTION 54-2025, IDAHO CODE, TO REVISE CERTIFICA-
17 TION REQUIREMENTS; AMENDING SECTION 54-2027, IDAHO CODE, TO REVISE THE
18 DUTIES AND REQUIREMENTS OF CERTIFIED COURSE PROVIDERS AND TO MAKE A TECH-
19 NICAL CORRECTION; AMENDING SECTION 54-2032, IDAHO CODE, TO REQUIRE CERTI-
20 FICATION OR COMMISSION APPROVAL FOR INDIVIDUALS TEACHING COURSES FOR
21 CREDIT TOWARD COMMISSION CONTINUING EDUCATION CORE COURSE REQUIREMENTS;
22 AMENDING SECTION 54-2033, IDAHO CODE, TO SET FORTH QUALIFICATIONS AND CER-
23 TIFICATION REQUIREMENTS FOR INDIVIDUALS WISHING TO TEACH CERTAIN COURSES;
24 AMENDING SECTION 54-2036, IDAHO CODE, TO REVISE PROVISIONS APPLICABLE TO
25 CERTIFICATION OF COURSES AND COURSE CONTENT; AMENDING SECTION 54-2041,
26 IDAHO CODE, TO REMOVE A REFERENCE TO TRUST FUND ACCOUNTS IN IDAHO; AMEND-
27 ING SECTION 54-2042, IDAHO CODE, TO REMOVE THE REQUIREMENT THAT TRUST
28 ACCOUNTS BE ESTABLISHED AT DEPOSITORIES LOCATED IN IDAHO AND TO REMOVE
29 REFERENCES TO SUCH REQUIREMENT; AMENDING SECTION 54-2043, IDAHO CODE, TO
30 REMOVE THE REQUIREMENT THAT INTEREST-BEARING TRUST ACCOUNTS BE CREATED AT
31 DEPOSITORIES IN IDAHO; AMENDING SECTION 54-2056, IDAHO CODE, TO REVISE
32 PROVISIONS APPLICABLE TO TERMINATING OR CHANGING LICENSED BUSINESS RELA-
33 TIONSHIPS; AND AMENDING SECTION 54-2062, IDAHO CODE, TO REVISE THE GROUNDS
34 FOR DISCIPLINARY ACTION.
35 Be It Enacted by the Legislature of the State of Idaho:
36 SECTION 1. That Section 54-2004, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 54-2004. DEFINITIONS. As used in this chapter:
39 (1) "Accredited college or university" means an institution accredited by
40 the regional accrediting associations, as reported in the most current publi-
41 cation of the accredited institutions of postsecondary education.
42 (2) "Active license" means the status of a real estate license that has
43 not been inactivated, expired, terminated, suspended or revoked.
1 ( 23) "Associate broker" means an individual who has qualified personally
2 as a real estate broker in Idaho under this chapter, but is licensed under,
3 associated with and represents a designated broker in the performance of any
4 act described in subsection ( 2931) of this section.
5 ( 34) "Branch office" means an office operated by a licensed real estate
6 broker or licensed legal business entity, separate and apart from the main
7 office. A branch office may be licensed or unlicensed, in accordance with this
9 ( 45) "Brokerage agreement" means a written contract between a buyer,
10 seller, or both, and a real estate brokerage for agency representation in a
11 regulated real estate transaction.
12 ( 56) "Brokerage company" means a real estate business, whether a sole
13 proprietorship, a legal entity, or any other licensed person engaged in acts
14 requiring a real estate license in Idaho, and which is conducting or holding
15 itself out as conducting the business of real estate through a designated bro-
17 ( 67) "Business name" means the name in which the brokerage company is
18 licensed by the commission.
19 ( 78) "Business opportunity" means and includes an established business,
20 good will of an established business, or any interest therein, or any one (1)
21 or combination thereof, where a sale or transfer of an interest in land
22 including, but not limited to, an assignment of a lease, is involved in the
24 ( 89) "Commission" means the Idaho real estate commission, unless the con-
25 text clearly indicates a different meaning.
26 (10) "Commission core course" means, in reference to a real estate course
27 offering, the course containing curriculum, identified by the commission, that
28 stresses current trends in real estate practices and changes in laws in real
29 estate related industries. A core course must contain no more than four (4)
30 classroom hours of instruction.
31 (11) "Continuing education elective course" means a real estate course
32 offering, other than the commission core course for which continuing education
33 credit hours may be obtained as provided in section 54-2023, Idaho Code.
34 ( 912) "Convicted" means a plea of nolo contendere or guilty, a jury ver-
35 dict of guilty or a court decision of guilt whether or not a judgment or sen-
36 tence has been imposed, withheld or suspended.
37 (1 03) "Cooperative sale" means a transaction involving two (2) or more
39 (11) "Core course" means, in reference to a real estate course offering, a
40 course containing curriculum, identified by the commission, that stresses cur-
41 rent trends in real estate practices and changes in laws in real estate
42 related industries. A core course must contain no more than four (4) classroom
43 hours of instruction.
44 (1 24) "Council" means the Idaho real estate education council.
45 (1 35) "Dealer in options" means any person, firm, partnership, association
46 or corporation who shall directly or indirectly take, obtain or use options to
47 purchase, exchange, lease option or lease purchase real property or any inter-
48 est therein for another or others whether or not the options shall be in his
49 or its name and whether or not title to the property shall pass through the
50 name of the person, firm, partnership, association or corporation in connec-
51 tion with the purchase, sale, exchange, lease option or lease purchase of the
52 real property, or interest therein.
53 (1 46) "Designated broker" means an individual who is licensed as a real
54 estate broker in Idaho and who is designated by the brokerage company to be
55 responsible for the supervision of the brokerage company and the activities of
1 any associated licensees in accordance with this chapter.
2 (1 57) "Distance learning course" means, in relation to a real estate
3 course offering, a real estate course that is delivered, not as a live course,
4 but through a medium in which the instructor and student are separated by dis-
5 tance or time.
6 (1 68) "Double contract" means two (2) or more written or unwritten con-
7 tracts of sale, purchase and sale agreements, loan applications, or any other
8 agreements, one (1) of which is not made known to the prospective loan under-
9 writer or the loan guarantor, to enable the buyer to obtain a larger loan than
10 the true sales price would allow, or to enable the buyer to qualify for a loan
11 which he or she otherwise could not obtain. An agreement or loan application
12 is not made known unless it is disclosed in writing to the prospective loan
13 underwriter or loan guarantor.
14 (1 79) "Executive director" means the executive director of the Idaho real
15 estate commission.
16 ( 1820) "Expired license" means the status of a license when the license
17 period has expired and the license is not renewed or provisional license
18 granted, and before the license is terminated.
19 ( 1921) "Fee or commission" means a payment, actual, promised or expected,
20 as compensation for the performance of any act requiring a real estate
22 (2 02) "Inactive license" means the status of a license that is not
23 expired, terminated, suspended or revoked, and during which inactive period
24 the license holder is not authorized to act as or associate with a designated
26 (2 13) "Legal business entity" means and includes any type of corporation,
27 partnership, limited liability company or limited liability partnership, a
28 governmental entity, trust or other entity capable of conducting business.
29 (2 24) "Licensee" means any person who is licensed in accordance with this
30 chapter to engage in the business or act in the capacity of real estate bro-
31 ker, associate broker or real estate salesperson.
32 (2 35) "Limited broker" means a broker individually qualified to do busi-
33 ness in Idaho, but who may not have associate brokers or salespersons licensed
34 with that broker.
35 (2 46) "Live presentation" means, in reference to a real estate course
36 offering, a real estate course that is personally presented by the instructor
37 and personally attended by the student at the same facility.
38 (2 57) "Main office" means the principal location where the real estate
39 broker is licensed to transact business.
40 (2 68) "Person" means and includes an individual, or any legal business
42 (2 79) "Primary Idaho license" means an Idaho real estate license that is
43 not contingent upon continuance of a license in another state or jurisdiction.
44 ( 2830) "Provisional license" means an extension of the period of active
45 licensure, beyond the licensee's expiration date, granted by the commission
46 for the purpose of allowing the licensee to complete the continuing education
47 requirements set forth in section 54-2023, Idaho Code, or for any other pur-
48 pose allowed by this chapter.
49 ( 2931) "Real estate broker" means and includes:
50 (a) Any person other than a real estate salesperson, who, directly or
51 indirectly, while acting for another, for compensation or a promise or an
52 expectation thereof, engages in any of the following: sells, lists, buys,
53 or negotiates, or offers to sell, list, buy or negotiate the purchase,
54 sale, option or exchange of real estate or any interest therein or busi-
55 ness opportunity or interest therein for others;
1 (b) Any actively licensed broker while, directly or indirectly, acting on
2 the broker's own behalf;
3 (c) Any person who represents to the public that the person is engaged in
4 any of the above activities;
5 (d) Any person who directly or indirectly engages in, directs, or takes
6 any part in the procuring of prospects, or in the negotiating or closing
7 of any transaction which does or is calculated to result in any of the
8 acts above set forth;
9 (e) A dealer in options as defined in this section.
10 (3 02) "Real estate salesperson" or "salesperson" means any person who has
11 qualified and is licensed as a real estate salesperson in Idaho under this
12 chapter, and is licensed under, associated with, and represents a designated
13 broker in the performance of any act described in subsection ( 2931) of this
15 (3 13) "Real estate settlement procedures act" means the real estate set-
16 tlement procedures act of 1974, as amended, 12 U.S.C. section 2601 et seq.,
17 and as in effect on January 1, 200 15.
18 (3 24) "Reciprocal license" means an Idaho real estate license that is
19 issued pursuant to the terms of a specific, written reciprocal agreement
20 between Idaho and another state or jurisdiction, and that is contingent upon
21 the licensee's maintaining a license in the other state or jurisdiction.
22 (3 35) "Regulated real estate transaction" means those real estate transac-
23 tions for which a real estate license is required under chapter 20, title 54,
24 Idaho Code.
25 (3 46) "Responsible broker" means the designated broker in the regulated
26 real estate transaction who is responsible for the accounting and transaction
27 files for the transaction, in the manner described in section 54-2048, Idaho
29 (3 57) "Revoked license" means a license that has been permanently revoked
30 by the issuing authority.
31 (3 68) "Sales associate" means a salesperson or an associate broker
32 licensed under and associated with a designated broker.
33 (3 79) "State or jurisdiction" means and includes any of the fifty (50)
34 states and any foreign jurisdiction that issue real estate licenses substan-
35 tially similar to those provided for in this chapter.
36 ( 3840) "Successfully completed" means, in reference to a real estate
37 course offering, completing all required course hours and, except where the
38 licensee seeks continuing education credit for having regularly attended the
39 live presentation of a course, passing a commission-approved final examina-
41 ( 3941) "Surrendered license" means a license that has been voluntarily
42 terminated or surrendered by a licensee who, at the time of the voluntary ter-
43 mination or surrender, was under investigation or named in a formal adminis-
44 trative complaint.
45 (4 02) "Suspended license" means a license that has been temporarily sus-
46 pended by the issuing authority.
47 SECTION 2. That Section 54-2012, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 54-2012. MINIMUM REQUIREMENTS FOR AN INDIVIDUAL PRIMARY IDAHO LICENSE.
50 (1) Requirements for all individual primary licenses. Unless a qualification
51 is waived or modified by the commission for good cause and upon special con-
52 sideration, and except as provided in section 54-2015, Idaho Code, each person
53 seeking a primary Idaho real estate license as a salesperson, associate broker
1 or designated broker shall meet all of the following minimum qualifications:
2 (a) Be an individual;
3 (b) Be eighteen (18) years of age or older;
4 (c) Furnish satisfactory proof that the applicant graduated from an
5 accredited high school or its equivalent or holds a certificate of general
7 (d) Not have had a real estate or other professional or occupational
8 license revoked, suspended, or surrendered, or the renewal refused, for a
9 disciplinary violation involving fraud, misrepresentation or dishonest or
10 dishonorable dealing, in Idaho or any other jurisdiction, within five (5)
11 years immediately prior to the date the application for license is submit-
12 ted to the commission;
13 (e) Not have been convicted or completed any sentence of confinement for
14 or on account of any misdemeanor involving fraud, misrepresentation or
15 dishonest or dishonorable dealing, in a state or federal court, within
16 five (5) years immediately prior to the date the application for license
17 is submitted to the commission;
18 (f) Not have been convicted of any felony in a state or federal court;
19 provided that after a period of five (5) years from the date the person
20 was convicted or completed any term of probation, sentence or confinement
21 or period of parole, whichever is later, the applicant may make written
22 request to the commission for an exemption review to determine the
23 applicant's suitability for licensure, which the commission shall deter-
24 mine in accordance with the following:
25 (i) The exemption review shall consist of a review of any documents
26 relating to the felony and any supplemental information provided by
27 the applicant bearing upon his suitability for licensure. The commis-
28 sion may, at its discretion, grant an interview of the applicant.
29 (ii) During the review, the commission shall consider the following
30 factors or evidence:
31 1. The severity or nature of the felony;
32 2. The period of time that has passed since the felony under
34 3. The number or pattern of felonies or other similar inci-
36 4. The circumstances surrounding the crime that would help
37 determine the risk of repetition;
38 5. The relationship of the crime to the licensed practice of
39 real estate; and
40 6. The applicant's activities since the crime under review,
41 such as employment, education, participation in treatment, pay-
42 ment of restitution, or any other factors which may be evidence
43 of current rehabilitation.
44 (iii) The applicant shall bear the burden of establishing his current
45 suitability for licensure.
46 (g) Complete all prelicense education requirements as provided for in
47 section 54-2022, Idaho Code, for a salesperson's or broker's license;
48 (h) Pass the commission-approved real estate licensing exam for a sales
49 or broker license in the time and manner stated in section 54-2014, Idaho
50 Code, and pay the required exam fees;
51 (i) Be fingerprinted for the purpose of a national criminal history check
52 to determine whether the applicant is qualified for licensure, and pay all
53 fees associated with the fingerprinting and background check services. If
54 the fingerprints are returned to the commission as illegible the applicant
55 shall, upon request from the commission, be fingerprinted again and file
1 the new fingerprints with the commission . All fees charged by the commis-
2 sion and the law enforcement agency for fingerprint services shall be paid
3 by the applicant;
4 (j) Sign and file with the commission an irrevocable consent to service,
5 appointing the commission's executive director to act as the licensee's
6 agent upon whom all judicial and other process or legal notices directed
7 to such licensee may be served, and consenting that any lawful process
8 against the licensee that is served upon the executive director shall be
9 of the same legal force and validity as if served upon the licensee and
10 that the authority shall continue in force so long as any liability
11 remains outstanding in this state. Upon receipt of any such process or
12 notice, the executive director shall immediately mail a copy of the same
13 by certified mail to the last known business address of the licensee. All
14 licensees shall provide the commission a full and current mailing address
15 and shall immediately notify the commission in writing of any change in
16 mailing address within ten (10) business days of the change;
17 (k) If licensing as an active salesperson or associate broker, provide
18 the name and physical address of the main business location of the desig-
19 nated broker with whom the applicant will be licensed, and the signature
20 of that broker; or, if licensing as a designated broker, provide the name
21 and physical address of the main business location. No Idaho sales associ-
22 ate may be licensed under or associated with more than one (1) Idaho bro-
23 ker at a time;
24 (l) Submit a properly completed application and all license, application
25 and other fees listed in section 54-2020, Idaho Code, or as otherwise
26 required by statute or rule; and
27 (m) Provide satisfactory proof of meeting the mandatory errors and omis-
28 sions insurance requirement for real estate licensees, as stated in sec-
29 tion 54-2013, Idaho Code.
30 (2) Additional requirements for broker and associate broker licenses.
31 Applicants seeking a primary Idaho license as a broker or associate broker
32 shall meet the additional following qualifications:
33 (a) Provide satisfactory evidence of having been actively engaged, on a
34 full-time basis, for two (2) years as a licensed real estate salesperson
35 within five (5) years immediately prior to the date upon which the indi-
36 vidual makes application. Such evidence shall demonstrate the
37 productiveness of the licensed activity to have been generally commensu-
38 rate with that of other licensees practicing in a similar capacity. List-
39 ings, sales, options or other licensed activities may be considered by the
40 commission in determining whether the applicant meets this qualification.
41 (i) A broker or associate broker applicant may be required to fur-
42 nish a report of listings and sales accomplished by the applicant
43 during two (2) or more years within the last five (5) years of licen-
44 sure immediately prior to the application date;
45 (ii) This report shall be certified as correct by the broker or bro-
46 kers with whom the applicant has been associated, provided however,
47 that upon preapproval by the commission, the applicant may verify
48 that the report is correct in an alternative manner;
49 (iii) The broker experience requirement may be modified or reduced,
50 in whole or in part, at the discretion of the commission, based upon
51 the applicant's educational background, or experience in related or
52 affiliated business activities;
53 (iv) The commission in its discretion may make such additional
54 investigation and inquiry relative to the applicant as it shall deem
1 (b) Designate a physical office location and a business name. The commis-
2 sion may refuse to issue a license to any person if the business name is
3 the same as that of any person whose license has been suspended or
4 revoked or is so similar as to be easily confused with another licensee's
5 name by members of the general public. However, nothing in this subsection
6 shall restrict an individual from obtaining a license in his or her own
7 legal name.
8 (c) If currently licensed in Idaho as a salesperson and applying for a
9 license as an Idaho broker or associate broker, the individual shall sub-
10 mit a new fingerprint card for processing with the application and pay
11 associated fees.
12 SECTION 3. That Section 54-2016, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 54-2016. PRIMARY IDAHO LICENSES FOR LEGAL BUSINESS ENTITIES, SOLE
15 PROPRIETORSHIPS AND BRANCH OFFICES -- ADDITIONAL REQUIREMENTS. (1) Legal busi-
16 ness entities. Each legal business entity, as defined in section 54-2004,
17 Idaho Code, shall be licensed by the Idaho real estate commission to engage in
18 the real estate business in Idaho and shall make proper application, pay all
19 required fees, and meet all requirements listed below.
20 (a) Each legal business entity shall have a properly licensed individual
21 designated broker, who shall be held responsible for the activities of the
22 licensed entity. The individual designated broker shall also hold the fol-
23 lowing legal position within the licensed entity:
24 (i) Corporation -- an officer;
25 (ii) Partnership or limited partnership -- a general partner;
26 (iii) Limited liability company -- a member or manager.
27 The individual designated broker for any business entity shall have full
28 authority to act on behalf of the licensed business entity, and shall sub-
29 mit sufficient and satisfactory proof thereof with the application for
30 license. Such proof shall include a list of the entity's officers, direc-
31 tors, members or managers, as reflected in the minutes, resolutions or
32 other similar business documents of the entity. All acts of that individ-
33 ual as designated broker shall be considered acts of the licensed business
34 entity. Nothing in this section is intended to create liability to a legal
35 business entity for illegal or fraudulent acts by the individual broker
36 performed solely on his own account.
37 (b) A license issued to a legal business entity, as defined in this chap-
38 ter, is effective only as long as the individual designated broker's
39 license is in active status and in effect. If the individual so designated
40 has a license refused, revoked, suspended or otherwise made inactive by
41 the commission, or if the individual designated broker voluntarily surren-
42 ders the individual license or ceases to be connected with the entity in
43 the manner required above, the business entity shall have ten (10) busi-
44 ness days in which to designate another qualified individual as designated
45 broker before the entity's license is terminated, and the licenses of all
46 associated licensees are made inactive.
47 (c) One (1) individual may act as designated broker for more than one (1)
48 licensed business entity, however, all entities shall have their main
49 offices in the same physical location.
50 (d) Satisfactory proof of mandatory errors and omissions insurance shall
51 be provided for both the individual designated broker and the licensed
52 business entity.
53 (e) A legal business entity doing business under an assumed name shall
1 provide satisfactory proof of having legally filed a certificate of
2 assumed name with the Idaho secretary of state.
3 (2) Sole proprietorships. An individual designated broker not licensed
4 with a legal business entity, as defined in section 54-2004, Idaho Code, shall
5 be licensed as a sole proprietor. Each sole proprietorship seeking a real
6 estate license shall meet all of the following requirements:
7 (a) A licensed sole proprietor doing business under an assumed business
8 name shall provide satisfactory proof of having legally filed a certifi-
9 cate of assumed name with the Idaho secretary of state;
10 (b) Satisfactory proof of mandatory errors and omissions insurance shall
11 be provided for the licensed designated broker of a sole proprietorship.
12 (3) Multiple business names prohibited. A legal business entity or sole
13 proprietorship shall be licensed under only one (1) business name.
14 (4) Branch offices. Each branch office in which trust funds and original
15 transaction files are maintained shall be separately licensed in accordance
16 with the following:
17 (a) The designated broker establishing the branch office shall submit an
18 application, along with the required fee for the issuance or renewal of
19 the branch office license.
20 (b) The broker shall designate in the application a branch manager, who
21 shall be a salesperson with at least two (2) years' experience or an asso-
22 ciate broker, to regularly occupy and be responsible for the supervision
23 of the branch office. When a branch manager is a regular full-time
24 employee or is engaged in a full-time activity at a location other than
25 the place he is licensed to do business, a presumption will be made that
26 the branch manager is unable to responsibly supervise the branch; provided
27 however, the presumption may be overcome by evidence to the contrary which
28 the commission determines to be satisfactory.
29 (c) A branch manager shall not be licensed to manage more than one (1)
30 branch office at a time.
31 (d) A license issued to a branch office is valid and in effect only as
32 long as the license of the designated individual remains in active status.
33 The license certificate of the branch office shall be signed by the desig-
34 nated broker.
35 (e) No separate branch office license or manager is required for business
36 locations other than the main office unless trust funds or original trans-
37 action records are kept at the branch.
38 (f) If a separate real estate trust account is maintained for a branch
39 office, all records and related files for that account shall be maintained
40 at the branch office.
41 (g) Each branch office or business location, whether separately licensed
42 or not, shall conduct business only in the licensed name of the legal
43 entity or sole proprietor.
44 (h) The current license certificates for the branch office, the branch
45 manager, and for each sales associate conducting business from the branch
46 office shall be prominently displayed or available for public inspection
47 at the branch office.
48 SECTION 4. That Section 54-2018, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 54-2018. LICENSE RENEWALS -- INACTIVE LICENSES STATUS -- PERSONAL CHANGES
51 -- EFFECTIVE DATES -- FEES NONREFUNDABLE. (1) Initial license period. Each new
52 license shall be for a period of one (1) year plus the months up to and
53 including the next birth date of the licensee, not to exceed a period of two
1 (2) years, and shall expire on a date to coincide with the last day of the
2 month of the birth date of the licensee. Corporations, partnerships, limited
3 liability companies and other entities defined as "persons" in this chapter
4 shall have established as the equivalent of a birth date, the birth date of
5 its designated broker. Licensed branch offices shall have established as the
6 equivalent of a birth date, the birth date of the designated broker for the
7 branch office.
8 (2) License renewal. Each license shall be renewable for a period of two
9 (2) years by timely submitting a completed application. Applications must be
10 received at the commission office on or before 5 p.m. of the expiration date.
11 (a) If renewing an active license, the application shall include:
12 (i) Certification that the applicant has met the commission's con-
13 tinuing education requirements as set forth in section 54-2023, Idaho
15 (ii) Certification that the applicant has met the mandatory errors
16 and omissions insurance requirement for real estate licensees as set
17 forth in section 54-2013, Idaho Code; and
18 (iii) Payment of all renewal fees established by this chapter or by
19 the commission.
20 (b) If renewing an inactive license, the application shall include pay-
21 ment of all renewal fees established by this chapter or by the commission
22 by rule.
23 (3) Late renewal. If the licensee fails to submit a completed application
24 for renewal or pay the renewal fee on or before the expiration date, the com-
25 mission may accept a later application or payment of the fee, subject to such
26 conditions as the commission may require including, but not limited to, the
27 assessment of a late fee; provided that between the license expiration date
28 and the date of renewal of the license, the rights of the licensee under such
29 license shall be expired, and during such period of expiration it shall be
30 unlawful for any licensee to do or attempt to offer to do any of the acts of
31 the kind and nature described in the definitions of real estate broker or real
32 estate salesperson in section 54-2004, Idaho Code, in consideration of compen-
33 sation of any kind or expectation thereof. An expired license that is not
34 renewed within one (1) year of the expiration date shall be automatically ter-
35 minated by the commission and may not be renewed.
36 (4) Active and inactive license status. A licensee who is a designated
37 broker or associated with a designated broker shall hold an active license. A
38 licensee who has paid all applicable fees, who is not associated with a desig-
39 nated broker and who holds a current license that is not revoked, suspended or
40 terminated shall hold his license on inactive status. A licensee seeking to
41 change from active license status to inactive license status shall have the
42 broker submit a change of status application to the commission in the form and
43 manner approved by the commission. During the period that his license is inac-
44 tive, the licensee shall not engage in the business or act in the capacity of
45 real estate broker, associate broker or salesperson. However, an inactive
46 licensee may receive a referral fee for any referral made during the period
47 his license was active. A licensee may activate an inactive license by meeting
48 each of the following:
49 (a) If activating as a sales associate, associating with a designated
50 Idaho broker and having the broker submit an application in the form and
51 manner approved by the commission;
52 (b) If activating as a designated broker, establishing an office in the
53 manner required by this chapter and submitting an application in the form
54 and manner approved by the commission;
55 (c) Paying the required fee;
1 (d) Obtaining and maintaining a policy of errors and omissions insurance
2 as required by section 54-2013, Idaho Code, and in accordance with the
3 rules of the commission and certifying the same; and
4 (e) Successfully completing any continuing education requirements, as
5 prescribed in section 54-2023, Idaho Code, and certifying the same for the
6 current license period.
7 (5) Continuing education. A licensee shall not submit an application to
8 renew a license on active status or to activate an inactive license without
9 having obtained the continuing education credit hours required by section
10 54-2023, Idaho Code. A licensee who violates this subsection (5) shall be sub-
11 ject to disciplinary action by the commission.
12 (6) Time required. The commission may request satisfactory proof of con-
13 tinuing education compliance from any licensee who has certified to the com-
14 mission that he has completed the requirement. The request shall state the
15 time within which the proof must be received at the commission office, which
16 time shall not be less than ten (10) business days.
17 (7) Satisfactory proof. Upon request from the commission, the licensee
18 shall submit satisfactory proof of having met the continuing education
19 requirement set forth in section 54-2023, Idaho Code. "Satisfactory proof"
20 shall, for each course, consist of documentation:
21 (a) Identifying the licensee, the title of the course or challenge exam,
22 the course certification number, the course provider, the number of class-
23 room hours, the completion date of the course or challenge exam, and
25 (i) A transcript of the course taken;
26 (ii) A letter from the provider verifying successful completion of
27 the course; or
28 (iii) A course completion certificate; and
29 (b) Identifying the course certification approval number to establish
30 that the course is approved for continuing education credit as provided by
31 section 54-2023, Idaho Code. The commission may, in its sole discretion,
32 accept alternative documentation establishing that the course is approved
33 for credit.
34 (8) Failure to submit proof. A licensee failing to submit satisfactory
35 proof of completing the continuing education requirement after being requested
36 to do so by the commission may have his license inactivated by the commission
37 and shall not be entitled to reactivate the license unless and until he pro-
38 vides to the commission satisfactory proof that he meets the continuing educa-
39 tion requirements of section 54-2023, Idaho Code. Nothing in this section
40 shall limit the ability of the commission to investigate or discipline a
41 licensee for violating subsection (5) of this section or for violating any
42 other section of this chapter.
43 (9) Change in personal information. An individual licensee, whether
44 active or inactive, shall provide written notice to the commission, in the
45 form and manner approved by the commission, of any change of his personal
46 name, address of personal residence or personal telephone number. Notice shall
47 be provided within ten (10) days of the change. If the licensee has changed
48 his personal name, he shall also submit legal proof of the change and the fee
49 for issuing a new license certificate and, if an active licensee, he shall
50 have the broker submit the written notice of change to the commission. Upon
51 receipt of the new license certificate or upon its effective date, whichever
52 is later, the broker shall remove from public view any license certificate
53 bearing the licensee's former name.
54 ( 610) Signature required. No license shall be valid unless the license
55 certificate is signed by the licensee.
1 ( 711) Effective dates. A request for licensure or for license changes
2 shall become effective when the properly completed application, attachments
3 and any required fee are received at and approved by the commission. An appli-
4 cation that is incomplete or lacking proper fees shall be returned to the
5 applicant and no license shall be issued until a completed application and
6 proper fees are received at and actually approved by the commission.
7 ( 812) Fees nonrefundable. No licensee shall be entitled to a refund of
8 any fee after the license or license change has become effective.
9 SECTION 5. That Section 54-2019, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 54-2019. DENIAL OF LICENSE APPLICATIONS. (1) The commission may deny any
12 license application, including an application for license renewal, upon the
13 commission's determination of any of the following:
14 (a) The applicant does not possess all of the qualifications required for
15 the license sought;
16 (b) The applicant employed fraud, deception, misrepresentation, misstate-
17 ment or omission or any unlawful means in applying for a license or taking
18 the exam;
19 (c) Within the five-year period immediately preceding the application,
20 the applicant committed any act for which a real estate license in Idaho
21 may be revoked or suspended;
22 (d) Payment of any licensing fee by check that is returned by the banking
23 institution due to insufficient funds, unless the reason for not paying on
24 the check is the fault of the banking institution; or
25 (e) There exist any other specific facts about the applicant that cause
26 the commission to reasonably conclude that granting the applicant's
27 request for Idaho licensure is not in the best interests of the citizens
28 of the state of Idaho.
29 (2) Where any of the facts referenced above warranting denial of the
30 application are not discovered or determined by the commission until after the
31 license has been issued, such facts may be grounds for the inactivation, expi-
32 ration, termination, suspension or revocation of the license.
33 SECTION 6. That Section 54-2023, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 54-2023. CONTINUING EDUCATION REQUIREMENTS. Each licensee seeking renewal
36 of applying to renew an Idaho real estate license on active status, and each
37 Idaho licensee seeking applying to change from inactive to active license sta-
38 tus, shall successfully complete a commission core course, plus the required
39 number of classroom hours of commission-approved or certified continuing edu-
40 cation coursework as provided in this section. , plus one (1) commission-
41 approved core course. Failure to meet the continuing education requirements as
42 set forth in this section constitutes an incomplete application for a renewal
43 of an active license or for a change in license status from inactive to
44 active, and, as such, constitutes grounds for denial of the application.
45 (1) Required number of classroom hours. The required number of classroom
46 hours is as follows:
47 (a) Renewing license on active status. A licensee renewing on active sta-
48 tus effective prior to July 1, 2003, must successfully complete at least a
49 commission core course, plus eight (8) classroom hours of continuing edu-
50 cation, plus one (1) commission-approved core course, on or before the
51 current license expiration date. A licensee renewing on active status
1 effective on or after July 1, 2003, must successfully complete at least a
2 commission core course, plus sixteen (16) classroom hours of continuing
3 education, plus one (1) commission-approved core course, on or before the
4 current license expiration date.
5 (b) Change from inactive to active. A licensee changing from inactive to
6 active license status must meet the continuing education requirements for
7 an active license for the current licensing period. If the inactive licen-
8 see renewed his license on or after July 1, 2003, he shall complete a com-
9 mission core course, plus sixteen (16) classroom hours of continuing edu-
10 cation, plus one (1) commission-approved core course, before he can change
11 to active license status. If the inactive licensee is within a license
12 renewal period that began prior to July 1, 2003, he shall complete a com-
13 mission core course, plus eight (8) classroom hours of continuing educa-
14 tion, plus one (1) commission-approved core course, before he can change
15 to active license status. If the inactive licensee is within his initial
16 licensing period, no continuing education is required to change to active
17 license status.
18 (2) No duplicate credit. No licensee may obtain continuing education
19 credit for completing:
20 (a) Any core course curriculum for which he has previously received con-
21 tinuing education credit; or
22 (b) Any course curriculum for which he has received continuing education
23 credit in the same license period.
24 (3) Excess credits. The classroom hours shall apply to the license period
25 in which such course is completed; hours completed in excess of those required
26 for the license period shall not accumulate or be credited for the purposes of
27 subsequent license renewal periods.
28 (4) Commission-ordered education. No licensee shall obtain continuing
29 education credit for education ordered by the commission as part of a disci-
30 plinary action.
31 (5) Obtaining continuing education classroom hours. In order to obtain
32 continuing education classroom hours, a licensee may must:
33 (a) Successfully complete a commission-approved continuing education
35 (b) Successfully complete a commission-approved continuing education
36 challenge exam;
37 (c) Attend an entire regularly-scheduled meeting of the commission. The
38 licensee shall provide at least seven (7) days' advance notice to the edu-
39 cation section of the commission of his intent to attend the meeting.
40 Failure to provide advance notice shall result in no continuing education
41 hours being credited. A maximum of three (3) hours for this activity shall
42 be credited for any one (1) meeting in any one (1) license period;
43 (d) Successfully complete a commission-approved broker prelicense course,
44 or a commission-approved continuing education challenge exam, in advanced
45 real estate study. Continuing education credit may be obtained for retak-
46 ing the same broker prelicense course or challenge exam only if completed
47 after five (5) years of completing the previous course or challenge exam;
49 (e) Provide to the commission a transcript or course completion certifi-
50 cate of successful completion of any of the following courses , in accor-
51 dance with all of the continuing education requirements of this section,
52 without commission preapproval of the curriculum, instructors or
54 (i) Professional designation c Courses. Any course developed by
55 national professional organizations that are required in order to
1 earn professional designations from a national organization in spe-
2 cialized areas of licensed real estate practice; and
3 (ii) Courses accredited by another profession or jurisdiction. Any
4 c Course s approved by and offered in satisfaction of another profes-
5 sional or occupational licensing authority's education requirements,
6 if the course is within the approved topic areas established by the
7 commission; or
8 (iii) Courses offered by an accredited college or university. Any
9 course offered in satisfaction of a degree requirement by an accred-
10 ited college or university if the course is within the approved topic
11 areas established by the commission.
12 (f) If a certified course instructor, teach a live course for which con-
13 tinuing education credit may be obtained. Credits shall be granted for the
14 number of classroom hours taught.
15 (6) Licensee duty to keep satisfactory proof. The licensee shall keep
16 satisfactory proof of having completed the continuing education requirement
17 and shall submit such proof at the request of the commission as provided in
18 section 54-2018, Idaho Code.
19 (7) Provisional license -- Extension of time. A three-month extension of
20 time for completing the education requirements may be obtained by submitting
21 with the renewal application, or application to activate, satisfactory evi-
22 dence showing that the applicant was unable to comply with such education
23 requirements. Such evidence may shall be:
24 (a) Bona fide hardship preventing completion of the reinstatement
25 requirements of an inactive license;
26 (b) Health reasons preventing attendance or completion;
27 (c) Active duty in the military service with assignment to a permanent
28 duty station outside of the state during the last twelve (12) months of a
29 license period; or
30 (d) Other compelling cause beyond the control of the applicant while
31 engaged in the real estate business.
32 If such an extension is granted, the licensee shall receive a provisional
33 license for a period of time not to exceed three (3) months. No further exten-
34 sion of time may be granted. A license issued or renewed after an extension of
35 time has been granted shall retain the original license expiration date. Fail-
36 ure to satisfy the continuing education requirement within the time granted
37 shall result in the automatic inactivation of the license.
38 SECTION 7. That Section 54-2025, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 54-2025. CERTIFICATION REQUIREMENTS. (1) Certification required. Except
41 as otherwise provided in section 54-2023(5)(e), Idaho Code, c Certification
42 must be obtained by all course providers, course instructors teaching any
43 course other than a continuing education elective course, and for all course
44 content in order for the course to be credited toward prelicense or continuing
45 education requirements in Idaho under this chapter.
46 (2) Courses, instructors and providers monitored. The commission or its
47 representative may monitor any course for the purpose of course, instructor or
48 provider certification.
49 (3) If the commission at any time determines that an instructor, course
50 or provider is not meeting the requirements for continued commission approval
51 or certification, written notification detailing the deficiencies requiring
52 correction shall be made immediately to the appropriate person. The commission
53 shall take no action to withdraw the certification for thirty (30) days from
1 the date of the written notice. At the expiration of this period, if the defi-
2 ciencies have not been corrected to the commission's satisfaction, the commis-
3 sion may take action to withdraw certification. Withdrawal of certification
4 shall be governed by the Idaho administrative procedure act, chapter 52, title
5 67, Idaho Code, and the rules of the commission.
6 SECTION 8. That Section 54-2027, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 54-2027. DUTIES AND REQUIREMENTS OF ALL CERTIFIED COURSE PROVIDERS. Fail-
9 ure of a certified course provider to comply with the following duties and
10 requirements shall be grounds for the commission to withdraw or cancel the
11 provider's certification for cause.
12 (1) Discrimination prohibited. Each certified course provider shall at
13 all times be in compliance with state and federal laws, rules and regulations
14 regarding all aspects of equal opportunity and protection of civil rights. No
15 course provider shall engage in discriminatory practices, nor allow their
16 course instructor, or method of delivery to violate laws prohibiting discrimi-
17 nation. Each course provider will fully comply with any requirements of the
18 Americans with disabilities act regarding access to and delivery of its
19 courses, including the provision of accessible facilities and reasonable
20 accommodations for students.
21 (2) Open access to course offerings. Registration and attendance at all
22 certified courses offered for prelicense or continuing education credit shall
23 be open to all persons meeting normal course prerequisites; . A provided how-
24 ever, a certified course provider located in or affiliated with a licensed
25 real estate brokerage company or professional association may not refuse rea-
26 sonable access to any licensee or unlicensed person based on that licensee's
27 or unlicensed person's affiliation with another organization or brokerage com-
28 pany, or the licensee's or unlicensed person's membership status in any pro-
29 fessional organization unless such course provider has received financial sup-
30 port from the commission for its particular course offering. However, Nothing
31 in this section shall restrict a course provider is not prohibited from charg-
32 ing a separate and reasonable course fee to nonaffiliated or nonmember licen-
33 sees or unlicensed persons.
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 coursework, such
37 fees shall be itemized by the provider and, upon payment of such fees, the
38 supplies, materials or books shall become the property of the student. All
39 fees and the manner in which they are to be paid shall be stated in a student
40 contract, in a form approved by the commission. The student contract shall
41 expressly include the provider's policy regarding the return of fees in the
42 instance where the student is dismissed or voluntarily withdraws from the
44 (4) Facilities and supportive personnel. The provider shall provide the
45 facilities and all supportive qualified personnel or approved proctors neces-
46 sary to adequately implement its real estate program.
47 (5) Student records and other requirements. Each Idaho certified course
48 provider shall comply with the following requirements:
49 (a) Records. Maintain for each individual student a complete, accurate
50 and detailed record which shall include the total number of hours of
51 instruction undertaken and satisfactorily or unsatisfactorily completed in
52 the area of study;
53 (b) Course completion lists. Within five (5) working days after conclu-
1 sion of each course of instruction, the provider shall submit to the
2 council or commission an alphabetical list which shall include the names,
3 addresses and social security numbers of the students completing the
4 course of instruction, the name of the course, the name of the instructor,
5 the number of hours included in the course, the date of the course and the
6 location. The list shall be certified by the instructor from whom the stu-
7 dents received instruction and an authorized representative of the pro-
9 (c) Grades. The provider will provide written notification to students
10 who successfully or unsuccessfully complete a course within thirty (30)
11 days of the course completion date;
12 (d) Evaluations. Each Upon the conclusion of each course, the provider
13 shall submit acceptable collect written evaluations from students evalua-
14 tions for each the course and instructor, which must be on commission-
15 approved forms. The use of using an evaluation form approved by the com-
16 mission, evaluation form is recommended; provided:
17 (i) For each prelicense course, the provider shall promptly submit
18 the collected student written evaluations to the commission; and
19 (ii) For each continuing education course, the provider shall keep
20 such evaluations for a period of one (1) year from the course comple-
21 tion date. Upon written request from the commission, the provider
22 shall submit a written summary of the student evaluations for the
23 course and instructor using a form approved by the commission.
24 (e) Course schedules. Each provider shall submit schedules of courses and
25 instructors as requested by the commission and submit changes promptly as
26 they occur. Whenever there is a change in a course including, but not lim-
27 ited to, a change in curriculum, course length or instructor, the provider
28 shall promptly notify the commission in writing of the change.
29 (6) Instructor certification not required for continuing education elec-
30 tive courses. A certified provider may offer a continuing education elective
31 course without obtaining approval or certification for the course instructor;
32 provided however, the provider shall maintain resumes or other biographical
33 information that documents the qualifications of the instructor to teach the
34 continuing education elective course.
35 (7) Posting and recording fees. The commission may require that course
36 providers pay to the commission a nonrefundable posting and recording fee to
37 defray normal expenses incurred in maintaining the certificate program. The
38 fee amount shall be established by the commission by motion.
39 ( 78) Advertising restrictions:
40 (a) Providers may advertise that they are currently certified by the com-
41 mission, if current certification has been approved, but no such advertis-
42 ing may state or imply that the provider is an agency of the commission or
43 the council;
44 (b) No course provider shall provide any information to the public or to
45 prospective students which is misleading in nature. Information is mis-
46 leading when, taken as a whole, there is distinct probability that it will
47 deceive the persons whom it is intended to influence.
48 ( 89) Changes in certification. Certification shall be granted to the par-
49 ticular provider for the specific ownership, provider location, and named
50 individual in charge as designated in the application for certification. Any
51 changes in ownership, provider location, or provider name, or named individual
52 in charge must be submitted for approval to the commission, at least one (1)
53 month in advance of the effective date of the proposed changes.
54 SECTION 9. That Section 54-2032, Idaho Code, be, and the same is hereby
1 amended to read as follows:
2 54-2032. CERTIFICATION OF INSTRUCTORS. All individuals wishing to teach
3 real estate courses for credit toward prelicense or the commission continuing
4 education core course requirements in Idaho must first be approved or certi-
5 fied by the commission for each course the individual wishes to teach.
6 SECTION 10. That Section 54-2033, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 54-2033. INSTRUCTOR QUALIFICATIONS. (1) Qualified instructors at degree-
9 granting institutions. A qualified or full-time instructor or professor of an
10 accredited college or university in any state or jurisdiction and who teaches
11 real estate-related courses is deemed to be an approved instructor of such
12 courses, in Idaho, for the purposes of this chapter.
13 (2) Other instructor applicants. All other individuals wishing to teach
14 real estate courses for credit toward Idaho prelicense requirements, or the
15 commission continuing education core course requirements must first meet the
16 following additional qualifications and receive separate certification for
17 each course to be taught:
18 (a) Unless this requirement is waived upon special review of the commis-
19 sion in the manner stated below, no individual instructor seeking certifi-
20 cation may have had a real estate or other professional or occupational
21 license suspended or revoked for disciplinary reasons or have been refused
22 a renewal of a license issued by the state of Idaho or any other state or
23 jurisdiction. Further, the individual may not have been convicted, issued
24 any fine, placed on probation, received a withheld judgment, or completed
25 any sentence of confinement for or on account of any felony, or any misde-
26 meanor involving fraud, misrepresentation, or dishonest or dishonorable
27 dealing, in a court of proper jurisdiction. The failure of a certified
28 instructor to maintain the qualifications required by this subsection
29 shall be grounds for the commission to withdraw or cancel the instructor's
30 certificate as provided in section 54-2025(3), Idaho Code.
31 (b) Each applicant for certification shall also:
32 (i) Submit a properly completed application for instructor certifi-
33 cation in the form and manner required by the commission, with all
34 proper fees;
35 (ii) File a properly executed "irrevocable consent to service of
36 process" in the manner and form prescribed by the commission and
37 according to section 54-2012(1)(j), Idaho Code;
38 (iii) Qualify as at least one (1) of the following:
39 1. An attorney at law actively licensed in any state or juris-
40 diction with at least five (5) years of active practice in the
41 areas of study proposed to be taught, and who has also success-
42 fully completed a commission-approved instructor training course
43 or procedure, including a student teaching period;
44 2. An individual currently approved or certified and in good
45 standing as a real estate instructor for the same or similar
46 course material in any other state or jurisdiction;
47 3. An individual who is appointed to teach a nationally recog-
48 nized real estate course which is generally accepted in other
49 states or jurisdictions; or
50 4. An individual with at least five (5) years active real
51 estate-related experience who has also successfully completed a
52 commission-approved instructor training procedure, including a
1 student teaching period.
2 SECTION 11. That Section 54-2036, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 54-2036. CERTIFICATION OF COURSES AND COURSE CONTENT. Every real estate
5 course offered for prelicense or continuing education credit for an Idaho real
6 estate license shall first be certified and accredited by the Idaho real
7 estate commission.
8 (1) An application for course certification must be submitted in the form
9 and manner required by the commission, with proper fees, at least two (2)
10 months prior to contemplated date of the first course offering.
11 (2) Minimum requirements for course certification:
12 (a) Each course must be certified individually, offered only through a
13 provider certified or approved in Idaho, and taught by an instructor cer-
14 tified or approved in Idaho in accordance with this chapter.
15 (b) Each prelicense course must contain at least twenty (20) classroom
16 hours, and each continuing education course must contain at least two (2)
17 classroom hours.
18 (c) Exam time shall not be included as approved classroom hours of
20 (d) A classroom hour is defined as a period of at least fifty (50) min-
21 utes of actual instruction.
22 (e) Distance learning and alternative course delivery courses. The length
23 of design and delivery of each distance learning course shall be certified
24 by the national association of real estate license law officials or by
25 another institution whose certification standards are deemed equivalent by
26 the commission. The credit hours for a certified distance learning or
27 other alternative course shall be based upon the same number of hours
28 which would be awarded in credited for an equivalent classroom live
29 course, and must include a commission-approved , proctored final exam. The
30 commission may, by motion, adopt national standards and require national
31 certification for the design and delivery of noncommission-produced dis-
32 tance learning courses.
33 (f) Each prelicense course must include a proctored, commission-approved
34 final exam requiring a minimum passing score of seventy percent (70%).
35 (g) Continuing education course exam.
36 (i) A licensee may receive continuing education course credit with-
37 out having to take or pass an exam if the licensee personally attends
38 the entire live presentation of an approved course.
39 (ii) The commission may substitute all or a portion of the continu-
40 ing education coursework required when a licensee shows evidence of
41 passing a commission-approved challenge exam.
42 (h) Exam retake policy. Each certified course provider may, at its
43 option, allow students who fail the initial course exam one (1) opportu-
44 nity to retake the approved course exam within the following time periods:
45 (i) Prelicense course exam retakes must occur within one (1) month
46 of the original course exam;
47 (ii) Continuing education course challenge exam retakes must occur
48 within that course's certification period;
49 (iii) If a student fails the retake exam for any prelicense or con-
50 tinuing education course, the student must repeat the entire course
51 and pass the final exam to receive credit.
52 (i) Challenge exams. A student shall not earn credit for any prelicense
53 course by challenging and passing the course exam without otherwise com-
1 pleting all course requirements.
2 (3) Approved topics. The commission shall establish specific, approved
3 topics for course content for prelicense courses and continuing education
4 courses as it deems appropriate to current real estate practices and laws.
5 SECTION 12. That Section 54-2041, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 54-2041. TRUST ACCOUNTS AND ENTRUSTED PROPERTY. (1) A licensed Idaho real
8 estate broker shall be responsible for all moneys or property entrusted to
9 that broker or to any licensee representing the broker.
10 (2) Immediately upon receipt, the broker shall deposit entrusted moneys
11 in a neutral, qualified trust fund account, in Idaho, and shall properly care
12 for any entrusted property.
13 (3) Only moneys relating to a regulated real estate transaction may be
14 deposited in the broker's real estate trust fund account. Entrusted moneys
15 shall not be commingled with moneys of the broker, firm or agent, except for
16 that minimum amount that may be required to open and maintain the trust
17 account or as otherwise allowed by subsection (7) of section 54-2042, Idaho
19 (4) The real estate broker shall remain fully responsible and accountable
20 for all entrusted moneys and property until a full accounting has been given
21 to the parties involved.
22 SECTION 13. That Section 54-2042, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 54-2042. CREATION OF NONINTEREST-BEARING TRUST ACCOUNTS -- REQUIREMENTS.
25 A broker may establish one (1) or more real estate trust accounts but each
26 account must meet all requirements of this chapter, including the following:
27 (1) Each trust account must be established at an approved depository ,
28 which must be located in the state of Idaho, and must be noninterest-bearing,
29 except as allowed in section 54-2043, Idaho Code, or as otherwise may be pro-
30 vided by law. Approved depositories are state or federally chartered banks
31 and trust companies, state or federally chartered savings and loan associa-
32 tions, properly licensed title insurance companies, in Idaho, or an actively
33 licensed attorney at law. in Idaho.
34 (2) Each account must be identified by the term "real estate trust
35 account," on checks, deposit slips, and with the depository.
36 (3) Each trust account must be established and maintained under the
37 licensed business name of the broker, and shall be under the full control of
38 the broker.
39 (4) Each broker trust account must have a separate and complete set of
40 records, which must consist of a monthly accounting, deposits, charges, and
41 withdrawals or checks, even if the moneys are on deposit with a title company,
42 attorney or other approved depository. The broker is responsible for ensuring
43 that these separate account records are provided by the depository.
44 (5) Funds deposited in a real estate trust account must be subject to
45 withdrawal on demand at the order or direction of the broker at all times,
46 even if deposited with a title company or other approved depository.
47 (6) A commission-approved form giving notice of opening a trust account
48 and giving authorization for the commission to inspect the account must be
49 completed for each trust account, signed by the broker and an officer of the
50 bank or depository and returned to the commission.
51 (7) No deposits to the trust account shall be made of funds that belong
1 to the broker or real estate firm, except that the broker may deposit broker
2 or firm funds for the purpose of opening and maintaining the account and for
3 the payment of anticipated bank service charges for the trust account. In no
4 event shall the balance of broker or firm funds in the account exceed three
5 hundred dollars ($300). Maintenance funds shall not be disbursed for any pur-
6 pose other than to cover bank charges charged directly to the trust account by
7 the bank.
8 (8) An entity not specified as an approved escrow depository in subsec-
9 tion (1) of this section, may be accepted and approved by the commission as an
10 escrow depository upon disclosure of the following:
11 (a) The details of the entity's financial structure;
12 (b) The amount and terms of errors and omissions insurance and any bond-
14 (c) A copy of the entity's last audit and financial statement;
15 (d) A copy of any license or certificate issued to the entity; and
16 (e) Any other information that may help the commission make its determi-
18 SECTION 14. That Section 54-2043, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 54-2043. INTEREST-BEARING TRUST ACCOUNTS. The broker may deposit funds in
21 a separate, interest-bearing trust account for a single transaction if
22 directed in writing by both parties to the transaction, and only if the fol-
23 lowing additional requirements are met:
24 (1) The interest-bearing trust account must be established in accordance
25 with all requirements in section 54-2042, Idaho Code. However, the interest-
26 bearing trust account shall be created at an approved depository. in Idaho.
27 (2) The deposit shall be made in the name of the broker, as described
28 above, and each such account shall contain only the funds relating to one (1)
30 (3) The interest-bearing trust account, when created for this purpose,
31 must allow for withdrawal of the funds upon the broker's demand, unless all
32 parties direct the broker in writing to do otherwise.
33 (4) There must be a written agreement signed by both the buyer and the
34 seller stating who is to receive the interest accrued from the deposit. This
35 agreement is to be retained by the responsible broker in the transaction file
36 with a copy given to the buyer and the seller.
37 SECTION 15. That Section 54-2056, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 54-2056. TERMINATING OR CHANGING LICENSED BUSINESS RELATIONSHIPS. (1)
40 Termination of licensed association. A sales associate who terminates his
41 licensed association with a broker shall provide the broker written notice of
42 the termination and no later than three (3) business days after the effective
43 date. A broker who terminates the licensed association of a sales associate
44 shall provide the associate written notice of the termination and no later
45 than three (3) business days after the effective date. A licensee's written
46 notice to the commission does not relieve him of the duty to provide written
47 notice to the other licensee that he is terminating the licensed association.
48 Upon written notice of the termination of a sales associate's licensed busi-
49 ness association with a broker, whether by the broker or by the sales associ-
50 ate, the broker shall remove from public view the former associate's license
1 (2) New association. The broker shall submit a written application, in
2 the form and manner approved by the commission, for each sales associate
3 licensing with the broker.
4 (3) Termination for cause. Any broker who terminates the association of a
5 sales associate for the violation of any of the provisions of sections 54-2059
6 through 54-2065, Idaho Code, shall, promptly within ten (10) business days of
7 the termination, notify the commission, in writing, of the termination and the
8 facts giving rise to the termination.
9 (4) Closing a branch office. Immediately upon closing a branch office,
10 the broker shall provide the commission written notice of the closure advising
11 of the new status of all licensees licensed with the closed branch. The broker
12 shall immediately remove from public view the branch office license certifi-
13 cate and the license certificates of all licensees licensed in the branch
15 (5) Property of the broker. Upon termination of the business relationship
16 as a sales associate licensed under a broker, the sales associate shall imme-
17 diately turn over to the broker all listing information and listing contracts,
18 keys, purchase and sale agreements and similar contracts, buyer brokerage
19 information and contracts, and other property belonging to the broker. A sales
20 associate shall not engage in any practice or conduct, directly or indirectly,
21 which encourages, entices or induces clients of the broker to terminate any
22 legal business relationship with the broker unless he first obtains written
23 permission of the broker.
24 (6) Location of trust accounts and file records. When an actively
25 licensed broker changes to a license status other than that of a designated
26 broker, that individual must notify the commission in writing of the location
27 of all trust accounts and transaction file records which the broker was
28 responsible for during the term of licensure as a designated broker. These
29 records shall be available to the commission for three (3) years following the
30 year in which each transaction was closed.
31 (7) Terminating relationships between a broker and a sole proprietorship
32 owned by a person other than the broker. When a broker for a sole proprietor-
33 ship, owned by a person other than the broker, terminates an association with
34 the owner, all records and trust account funds shall become the property of,
35 and be maintained and disbursed by, the terminating broker in accordance with
36 this chapter and applicable rules promulgated thereunder. The terminating bro-
37 ker shall deliver, upon request made in writing by the clients and the new
38 broker of that sole proprietorship, such records and trust account funds per-
39 taining to that client, to the new broker who shall thereafter have the
40 responsibility for preservation and disbursement, in accordance with this
41 chapter and applicable rules promulgated thereunder.
42 SECTION 16. That Section 54-2062, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 54-2062. ADDITIONAL GROUNDS FOR DISCIPLINARY ACTION -- OTHER ADMINISTRA-
45 TIVE ACTIONS -- LICENSEE TO REPORT TO COMMISSION. (1) The commission may also
46 take any disciplinary action, including, but not limited to, suspension or
47 revocation of a license where the licensee:
48 (a) Has an order or determination of debarment, suspension, or any limi-
49 tation on participation in government loan programs issued against the
50 licensee for misconduct; or
51 (b) Has a real estate or other professional license , issued by another
52 jurisdiction, suspended or revoked for a disciplinary violation involving
53 fraud, misrepresentation, or dishonest or dishonorable dealings. A certi-
1 fied copy of the order of the administrative agency in the other jurisdic-
2 tion shall be prima facie evidence of the suspension or revocation.
3 (2) A licensee against whom a final administrative action has been taken,
4 as described in subsection (1) of this section, shall, within twenty (20) days
5 of such action, forward to the commission a copy of the legal document evi-
6 dencing the same.
STATEMENT OF PURPOSE
This is the IREC's "Annual Housekeeping Bill." This bill will
correct inconsistencies existing within the chapter; move
administrative rules into the statute; and update provisions to
conform to current technology, business practices, and changes
in state law. This bill also clarifies the educational
requirements for renewing an active real estate license, and the
consequences and penalties to a licensee who renews his license
without having first met those requirements. The bill also
shifts responsibility to the real estate schools to ensure that
the courses being offered for continuing education credit are
taught by competent instructors. The bill further authorizes
brokerages and professional associations to restrict their
certified course offerings to members.
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.
Name: Donna Jones
Agency: Real Estate
Statement of Purpose/Fiscal Impact S 1010