Bill Text - HB1579 (2016)

Relative to regulation of the practice of out-of-state brokers by the real estate commission.


Revision: Dec. 14, 2015, midnight

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HB 1579 - AS INTRODUCED

 

2016 SESSION

\t16-2411

\t10/01

 

HOUSE BILL\t1579

 

AN ACT\trelative to regulation of the practice of out-of-state brokers by the real estate commission.

 

SPONSORS:\tRep. Baroody, Hills. 43; Rep. Massimilla, Graf. 1; Rep. DiSilvestro, Hills. 9; Rep. Hinch, Hills. 21

 

COMMITTEE:\tCommerce and Consumer Affairs

 

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ANALYSIS

 

\tThis bill establishes requirements for out-of-state real estate brokers and salespersons to act in commercial real estate transactions in this state.

 

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Explanation:\tMatter added to current law appears in bold italics.

\t\tMatter removed from current law appears [in brackets and struckthrough.]

\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.

\t16-2411

\t10/01

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT\trelative to regulation of the practice of out-of-state brokers by the real estate commission.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

\t1  Real Estate Practice Act; Definitions.  Amend RSA 331-A:2, IV-a and IV-b to read as follows:

\t\tIV-a.  "Commercial real estate" means any real estate other than real estate containing one to 4 family dwelling units.

\t\tIV-b.  "Designated agent'' means a licensee who has been appointed by an appointing agent to represent one party of a real estate transaction and who owes that party fiduciary duties, whether or not the other party to the same transaction is represented by another individual licensee associated with the same brokerage firm.

\t\t[IV-b.] IV-c.  "Disclosed dual agent'' means a licensee acting for more than one party whose interests may differ in a transaction with the knowledge and written consent of all parties for whom the licensee acts.

\t2  New Paragraphs; Real Estate Practice Act; Definitions.  Amend RSA 331-A:2 by inserting after paragraph VI-b the following new paragraphs:

\t\tVI-c.  "Out-of-state broker" means a person licensed in another state as a real estate broker who is not licensed as a real estate broker under this chapter.

\t\tVI-d.  "Out-of-state salesperson" means a person licensed in another state as a real estate licensee who is not licensed as a real estate licensee under this chapter.

\t3  Practice by Out-of-State Brokers.  RSA 331-A:22-a is repealed and reenacted to read as follows:

\t331-A:22-a  Practice by Brokers of Other Jurisdictions.

\t\tI.  An out-of-state broker may perform acts with respect to a commercial real estate transaction that require a license under this chapter, provided the out-of-state broker complies with the laws of this state with respect to the transaction and:

\t\t\t(a)  Works in cooperation with a licensed New Hampshire broker, whether in a co-brokerage, referral, or other cooperative agreement or arrangement;

\t\t\t(b)  Enters into a written agreement with a licensed New Hampshire broker that includes the terms of cooperation and any compensation to be paid by the licensed broker and a statement that the out-of-state broker and the out-of-state broker's agents will comply with the laws of this state;

\t\t\t(c)  Provides the licensed New Hampshire broker a copy of the out-of-state broker's license or other proof of licensure from the jurisdictions where the out-of-state broker maintains a license as a real estate broker;

\t\t\t(d)  Deposits all escrow funds, security deposits, and other money received pursuant to the commercial real estate transaction to be held as provided in RSA 331-A:13; and

\t\t\t(e)  Complies with and is bound by and subject to New Hampshire law and the rules of the New Hampshire real estate commission and consents to the jurisdiction of the state of New Hampshire.

\t\tII.  An-out-of-state salesperson may perform acts with respect to a commercial real estate transaction that require a license as a real estate salesperson under this chapter, provided the out-of-state salesperson complies with the laws of this state with respect to the transaction and:

\t\t\t(a)  Works under the direct supervision of an out-of-state licensed broker who complies with the requirements set forth in paragraph I; and

\t\t\t(b)  Provides the New Hampshire licensed broker who is working in cooperation with the out-of-state broker a copy of the out-of-state salesperson's license or other proof of licensure from the jurisdictions where the out-of-state salesperson maintains a license as a real estate salesperson.

\t\tIII.  Each out-of-state broker or out-of-state salesperson who advertises for sale commercial real estate pursuant to this section shall include in any advertising material the name and contact information in equal prominence of the New Hampshire licensed broker with whom the out-of-state-broker has a written agreement.

\t\tIV.  The commission shall adopt rules, pursuant to RSA 541-A, relative to cooperative brokerage agreements under this section.  Such rules shall include:

\t\t\t(a)  The form and content of a cooperative brokerage agreement.

\t\t\t(b)  The length of time an agreement may be effective.

\t\t\t(c)  The procedure for extension or early termination of an agreement.

\t\t\t(d)  Any fees which may be associated with a cooperative brokerage agreement.

 \t\t\t(e)  The penalty, in addition to any other penalty under this chapter, for violation of the rules concerning cooperative brokerage agreements, and the procedure to appeal the commission's ruling.

\t\tV.  An out-of-state broker or out-of-state salesperson who fails to comply with any provision of this section shall be considered in violation of RSA 331-A:34.

\t4  Effective Date.  This act shall take effect 60 days after its passage.

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