Bill Text: HI HB273 | 2010 | Regular Session | Introduced
Bill Title: Mortgage Rescue Fraud Prevention Act and Real Estate Licensees
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [HB273 Detail]
Download: Hawaii-2010-HB273-Introduced.html
Report Title:
Mortgage Rescue Fraud Prevention Act and Real Estate Licensees
Description:
Excludes licensed real estate brokers and salespersons from the definition of "distressed property consultant" in the Mortgage Foreclosure Rescue Fraud Prevention Act, and adds to real estate licensing laws prohibitions against certain conduct by licensed real estate brokers and salespersons that specifically relate to distressed property.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
273 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE REAL ESTATE LICENSEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 467-14, Hawaii Revised Statutes, is amended to read as follows:
"§467-14 Revocation, suspension, and fine. In addition to any other actions authorized by law, the commission may revoke any license issued under this chapter, suspend the right of the licensee to use the license, fine any person holding a license, registration, or certificate issued under this chapter, or terminate any registration or certificate issued under this chapter, for any cause authorized by law, including but not limited to the following:
(1) Making any misrepresentation concerning any real estate transaction;
(2) Making any false promises concerning any real estate transaction of a character likely to mislead another;
(3) Pursuing a continued and flagrant course of misrepresentation, or making of false promises through advertising or otherwise;
(4) Without first having obtained the written consent to do so of both parties involved in any real estate transaction, acting for both the parties in connection with the transaction, or collecting or attempting to collect commissions or other compensation for the licensee's services from both of the parties;
(5) When the licensee, being a real estate salesperson, accepts any commission or other compensation for the performance of any of the acts enumerated in the definition set forth in section 467-1 of real estate salesperson from any person other than the real estate salesperson's employer or the real estate broker with whom the real estate salesperson associates or, being a real estate broker or salesperson, compensates one not licensed under this chapter to perform any such act;
(6) When the licensee, being a real estate salesperson, acts or attempts to act as a real estate broker or represents, or attempts to represent, any real estate broker other than the real estate salesperson's employer or the real estate broker with whom the real estate salesperson is associated;
(7) Failing, within a reasonable time, to account for any moneys belonging to others which may be in the possession or under the control of the licensee;
(8) Any other conduct constituting fraudulent or dishonest dealings;
(9) When the licensee,
being a partnership, permits any member of the partnership who does not hold a
real estate broker's license to actively participate in the real estate
brokerage business thereof or permits any employee thereof who does not hold a
real estate salesperson's license to act as a real estate salesperson [therefore;]
therefor;
(10) When the licensee,
being a corporation, permits any officer or employee of the corporation who
does not hold a real estate broker's license to have the direct management of
the real estate brokerage business thereof or permits any officer or employee
thereof who does not hold a real estate salesperson's license to act as a real
estate salesperson [therefore;] therefor;
(11) When the licensee, being a real estate salesperson, fails to file with the commission a written statement setting forth the name of the real estate broker by whom the licensee is employed or with whom the licensee is associated;
(12) When the licensee fails to obtain on the contract between the parties to the real estate transaction confirmation of who the real estate broker represents;
(13) Violating this chapter; chapter 484, 514A, 514B, 514E, or 515; section 516-71; or the rules adopted pursuant thereto;
(14) Splitting fees with or otherwise compensating others not licensed hereunder for referring business; provided that notwithstanding paragraph (5), a real estate broker may pay a commission to:
(A) A licensed real estate broker of another state, territory, or possession of the United States if that real estate broker does not conduct in this State any of the negotiations for which a commission is paid;
(B) A real estate broker lawfully engaged in real estate brokerage activity under the laws of a foreign country if that real estate broker does not conduct in this State any of the negotiations for which a commission is paid; or
(C) A travel agency that in the course of business as a travel agency or sales representative, arranges for compensation the rental of transient vacation rental; provided that for purposes of this paragraph "travel agency" means any person, which for compensation or other consideration, acts or attempts to act as an intermediary between a person seeking to purchase travel services and any person seeking to sell travel services, including an air or ocean carrier;
(15) Commingling the money or other property of the licensee's principal with the licensee's own;
(16) Converting other people's moneys to the licensee's own use;
(17) The licensee is adjudicated insane or incompetent;
(18) Failing to ascertain and disclose all material facts concerning every property for which the licensee accepts the agency, so that the licensee may fulfill the licensee's obligation to avoid error, misrepresentation, or concealment of material facts; provided that for the purposes of this paragraph, the fact that an occupant has AIDS or AIDS Related Complex (ARC) or has been tested for HIV (human immunodeficiency virus) infection shall not be considered a material fact;
(19) When the licensee
obtains or causes to be obtained, directly or indirectly, any licensing
examination or licensing examination question for the purpose of disseminating
the information to future takers of the examination for the benefit or gain of
the licensee; [or]
(20) Failure to
maintain a reputation for or record of competency, honesty, truthfulness,
financial integrity, and fair dealing[.]; or
(21) Acquiring an ownership interest, directly or indirectly, or by means of a subsidiary or affiliate, in any distressed property, as defined in section 480E-2, that is listed with the licensee or within three hundred and sixty-five days after the licensee's listing agreement for the distressed property is terminated.
Disciplinary action may be taken by the commission whether the licensee is acting as a real estate broker, or real estate salesperson, or on the licensee's own behalf."
SECTION 2. Section 480E-2, Hawaii Revised Statutes, is amended by amending the definition of "distressed property consultant" to read as follows:
""Distressed property consultant" means any person who performs or makes any solicitation, representation, or offer to perform any of the following relating to a distressed property:
(1) Stop or postpone the foreclosure sale or loss of any distressed property due to the nonpayment of any loan that is secured by the distressed property;
(2) Stop or postpone the charging of any lien or encumbrance against any distressed property or eliminate any lien or encumbrance charged against any distressed property for the nonpayment of any taxes, lease assessments, association fees, or maintenance fees;
(3) Obtain any forbearance from any beneficiary or mortgagee, or relief with respect to a tax sale of the property;
(4) Assist the owner to exercise any cure of default arising under Hawaii law;
(5) Obtain any extension of the period within which the owner may reinstate the owner's rights with respect to the property;
(6) Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a distressed property or contained in the mortgage;
(7) Assist the owner in foreclosure, loan default, or post-tax sale redemption period to obtain a loan or advance of funds;
(8) Avoid or ameliorate the impairment of the owner's credit resulting from the recording or filing of a notice of default or the conduct of a foreclosure sale or tax sale; or
(9) Save the owner's residence from foreclosure or loss of home due to nonpayment of taxes.
"Distressed property consultant" shall not include any of the following:
(1) A person or the person's authorized agent acting under the express authority or written approval of the federal Department of Housing and Urban Development;
(2) A person who holds or is owed an obligation secured by a lien on any distressed property, or a person acting under the express authorization or written approval of such person, when the person performs services in connection with the obligation or lien, if the obligation or lien did not arise as the result of or as part of a proposed distressed property conveyance;
(3) Banks, savings banks, savings and loan associations, credit unions, trust companies, depository and nondepository financial service loan companies, and insurance companies organized, chartered, or holding a certificate of authority to do business under the laws of this State or any other state, or under the laws of the United States;
(4) Licensed attorneys engaged in the practice of law;
(5) A federal Department of Housing and Urban
Development approved mortgagee and any subsidiary or affiliate of these persons
or entities, and any agent or employee of these persons or entities, while
engaged in the business of these persons or entities; [or]
(6) A nonprofit organization that, pursuant to
chapter 446, offers counseling or advice to an owner of a distressed property,
if the nonprofit organization has no contract or agreement for services with
lenders, distressed property purchasers, or any person who effects loans or
distressed property purchases[.];
(7) A person licensed as a real estate broker or salesperson under chapter 467 when acting as a real estate broker or salesperson."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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