Relating to real estate brokers and brokerage agreements

This bill relates to real estate brokers and brokerage agreements. The bill includes in the current definition of a real estate broker a person acting for another for a fee, commission, or other compensation or promise who prepares buyer’s representation agreements, including any modifications, amendments, or addendums. “Buyer’s representation agreement” is defined by the bill. The bill requires a licensee, when providing brokerage services to a client, to treat all parties to a transaction with honesty and good faith, disclose to each party all material adverse facts as laid out in the bill, and to account for all property coming into the possession of the licensee that belongs to any party within a reasonable time. The bill requires the licensee to place the client’s interests ahead of the interests of any other party, disclose to the client all information known by the licensee that is material to the transaction and that is not known by the client or could not be discovered by the client through a reasonably diligent inspection, fulfill any obligation that is within the scope of the brokerage agreement, and diligently exercise reasonable skill and care in providing brokerage services. Under the bill, a brokerage agreement shall specify that a broker shall review the broker’s compensation. Additionally, a brokerage agreement must be signed by both a broker and a client prior to the broker listing any property for sale on behalf of a seller or making an offer on a property on behalf of a buyer.60.