sb 0134

CHAPTER 268

SB 134 - FINAL VERSION

AN ACT relative to the regulation of real estate brokers by the real estate commission.

SPONSORS: Sen. Gallus, Dist 1; Sen. Roberge, Dist 9; Sen. Odell, Dist 8; Rep. Dickinson, Carr 4; Rep. Bruno, Hills 45

This bill makes various changes to the real estate practice act concerning the licensure and regulation of real estate brokers by the real estate commission under RSA 331-A.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the regulation of real estate brokers by the real estate commission.

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

268:1 Definition of Broker. Amend the introductory paragraph of RSA 331-A:2, III to read as follows:

III. "Broker" means any person acting for another on commission or for other compensation, for the promise of such commission or other compensation, or any person licensed under this chapter [~~acting in the licensee's own behalf~~] who:

268:2 Qualifications for Licensure. RSA 331-A:10 is repealed and reenacted to read as follows:

I. The executive director shall issue a salesperson's license to any applicant who:

(b) Has successfully completed an examination administered or approved by the commission which demonstrates satisfactory knowledge and understanding of the principles of real estate practice. The executive director shall only accept for registration to take the examination for a salesperson's license, an applicant who shows proof of completion of 40 hours of approved study;

(d) Furnishes any evidence required by the commission relative to good reputation for honesty, trustworthiness and integrity.

(b) Has successfully completed an examination administered or approved by the commission which demonstrates satisfactory knowledge and understanding of the principles of real estate practice. The executive director shall only accept for registration to take the examination for a broker's license, an applicant who shows proof of completion of 60 hours of approved study;

(c)(1) Has been employed full time by an active broker for at least one year; or

(2) Has at least 2,000 part-time hours as a licensed salesperson in this state; or

(3) Proves to the commission that the applicant has experience equivalent to the experience required by subparagraph (c)(1) or (c)(2);

(e) Furnishes any evidence required by the commission relative to good reputation for honesty, trustworthiness and integrity; and

(f) For a broker acting as a principal broker or a managing broker, but excluding associate brokers or a corporation, partnership, limited liability company, or association, files a surety bond with the commission which shall be held in accordance with RSA 331-A:14.

331-A:11-a Reciprocity For Licensure. If an applicant holds an active real estate license in good standing, and issued by examination in accordance with the laws of another jurisdiction, that applicant may apply for an original New Hampshire license by first taking the New Hampshire portion of the licensing examination, provided the jurisdiction that issued such nonresident license has previously entered into a licensing reciprocity agreement which has been approved by the commission, and provided that [~~all of the~~] other requirements of [~~this chapter applicable to residents of New Hampshire~~] the commission have been met. This section applies to nonresident salesperson applicants only when such applicants are applying for an original New Hampshire salesperson license.

331-A:14 Bonds. No principal or managing broker's license shall be issued or renewed until the applicant gives to the commission a surety bond in [~~the~~] any form approved by the commission in a sum of not less than $25,000, executed by the applicant and by a surety company authorized to do business in this state. The bond shall be payable to the state of New Hampshire, for the benefit of any person aggrieved, and shall be conditioned upon the faithful accounting by the broker for all funds entrusted to the broker in the broker's capacity as a principal or managing real estate broker. Any person so aggrieved may bring suit on the bond in the aggrieved person's own name; provided, however, that the aggregate liability of the surety to all persons shall, in no event, exceed the sum of such bond. The commission may revoke the license of any principal or managing broker whenever the bond filed by the broker ceases to be in full force and effect.

(b) [~~With the exception of business cards,~~] Any advertising which contains a home telephone number, cell-phone number, beeper or pager number, home fax number, or electronic mail address of an individual salesperson or associate broker, or a team of such licensees, shall also include the name and telephone number of the employing broker or brokerage firm through which the advertising licensees operate. All such advertising shall contain language identifying each number included in the advertising.

VII. When a salesperson's or broker's services are terminated by the principal broker for a violation of any of the provisions of this chapter, a written statement of the facts shall be submitted immediately to the commission by the principal broker.

I. The commission shall mail each licensee a renewal form or, at the licensee's request, the commission may provide the renewal form by other means acceptable to the commission, at least 60 days before expiration of the license.

I. A nonresident of this state may become a broker or salesperson in this state by conforming to all of the conditions of this chapter applicable to residents of this state. [If an applicant already holds an active real estate license in good standing, issued by examination in accordance with the laws of another jurisdiction, that applicant need pass only the New Hampshire state portion of the licensing examination to satisfy the examination requirement for an original New Hampshire license with the state of New Hampshire, provided the jurisdiction that issued such nonresident license has previously entered into a licensing reciprocity agreement which has been approved by the commission, and provided that all of the other requirements of this chapter applicable to residents of New Hampshire have been met.]

II. Upon making application, such nonresidents shall file an irrevocable consent and power providing that legal actions may be commenced against them in the proper court of any county of this state in which a cause of action may arise or in which the plaintiff may reside by service of process or pleading authorized by the laws of this state on a member of the commission or its executive director, the consent or power stipulating that such service of process or pleading shall be taken in all courts to be valid and binding as if personal service had been made upon the nonresident in this state.

XXII. Failing to disclose in writing to an owner, the licensee's intention or true position if the licensee directly, or indirectly through a third party, purchases or leases for such licensee, or acquires or intends to acquire any interest in or any option to purchase or lease the property. Such disclosure shall be made prior to an offer to purchase or lease, and acknowledged in writing by all parties to the transaction.

III. Licenses shall be issued in the form of a certificate for wall display and a card to be carried on the person. Each licensed broker shall prominently display at the principal place of business the broker's certificate and those of all licensed salespersons and associate brokers associated with or under contract to the broker.