Bill Text: MI HB6056 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Occupations; real estate; requirement for real estate firms to disclose all offers on foreclosed bank owned properties; provide for. Amends sec. 2512 of 1980 PA 299 (MCL 339.2512) & adds sec. 2516.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-04-22 - Printed Bill Filed 04/22/2010 [HB6056 Detail]

Download: Michigan-2009-HB6056-Introduced.html

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HOUSE BILL No. 6056

 

April 21, 2010, Introduced by Rep. Polidori and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending section 2512 (MCL 339.2512), as amended by 2008 PA 90

 

and by adding section 2516.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2512. A licensee who commits 1 or more of the following

 

is subject to the penalties set forth in article 6:

 

     (a) Except in a case involving property management, acts for

 

more than 1 party in a transaction without the knowledge of the

 

parties.

 

     (b) Fails to provide a written agency disclosure to a

 

prospective buyer or seller in a real estate transaction as defined

 

in section 2517.

 

     (c) Represents or attempts to represent a real estate broker

 

other than the employer without the express knowledge and consent

 

of the employer.

 

     (d) Fails to account for or to remit money coming into the

 

licensee's possession which belongs to others.

 

     (e) Changes a business location without notification to the

 

department.

 

     (f) In the case of a real estate broker, fails to return a

 

real estate salesperson's license within 5 days as provided in

 

section 2507.

 

     (g) In the case of a licensee engaged in property management,

 

violates section 2512c(2), (5), or (6).

 

     (h) Except as provided in section 2512b, shares or pays a fee,

 

commission, or other valuable consideration to a person not

 

licensed under this article including payment to any person

 

providing the names of, or any other information regarding, a

 

potential seller or purchaser of real estate but excluding payment

 

for the purchase of commercially prepared lists of names. However,

 

a licensed real estate broker may pay a commission to a licensed

 

real estate broker of another state if the nonresident real estate

 

broker does not conduct in this state a negotiation for which a

 

commission is paid.

 

     (i) Conducts or develops a market analysis not in compliance

 

with section 2601(a)(ii).

 

     (j) Fails to provide the minimum services as specified in

 

section 2512d(3) when providing services pursuant to a service

 

provision agreement unless expressly waived in writing by the

 

client under section 2517(3) 2517(4).

 

     (k) Fails to convey an offer to purchase to an owner and to

 

the financial institution, bank, or other entity holding the

 

mortgage that has commenced a foreclosure proceeding during the

 

time the proceeding is pending or within the redemption period in

 

the case of a completed foreclosure, in violation of section 2516.

 

     (l) In the case of real estate subject to foreclosure, fails to

 

obtain, within 5 business days after receipt of the offer to

 

purchase, a letter of acceptance or rejection from the financial

 

institution, bank, or other entity holding the mortgage or fails to

 

immediately convey a letter of acceptance or rejection, in

 

violation of section 2516.

 

     (m) (k) Except in the case of property management accounts,

 

fails to deposit in the real estate broker's custodial trust or

 

escrow account money belonging to others coming into the hands of

 

the licensee in compliance with the following:

 

     (i) A real estate broker shall retain a deposit or other money

 

made payable to a person, partnership, corporation, or association

 

holding a real estate broker's license under this article pending

 

consummation or termination of the transaction involved and shall

 

account for the full amount of the money at the time of the

 

consummation or termination of the transaction.

 

     (ii) A real estate salesperson shall pay over to the real

 

estate broker, upon receipt, a deposit or other money on a

 

transaction in which the real estate salesperson is engaged on

 

behalf of the real estate broker.

 

     (iii) A real estate broker shall not permit an advance payment

 

of funds belonging to others to be deposited in the real estate

 

broker's business or personal account or to be commingled with

 

funds on deposit belonging to the real estate broker.

 

     (iv) A real estate broker shall deposit, within 2 banking days

 

after the broker has received notice that an offer to purchase is

 

accepted by all parties, money belonging to others made payable to

 

the real estate broker into a separate custodial trust or escrow

 

account maintained by the real estate broker with a bank, savings

 

and loan association, credit union, or recognized depository until

 

the transaction involved is consummated or terminated, at which

 

time the real estate broker shall account for the full amount

 

received.

 

     (v) A real estate broker shall keep records of funds deposited

 

in its custodial trust or escrow account, which records shall

 

indicate clearly the date and from whom the money was received, the

 

date deposited, the date of withdrawal, and other pertinent

 

information concerning the transaction, and shall show clearly for

 

whose account the money is deposited and to whom the money belongs.

 

The records shall be subject to inspection by the department. A

 

real estate broker's separate custodial trust or escrow account

 

shall designate the real estate broker as trustee, and the

 

custodial trust or escrow account shall provide for withdrawal of

 

funds without previous notice. This article and the rules

 

promulgated pursuant to this article do not prohibit the deposit of

 

money accepted under this section in a noninterest bearing account

 

of a state or federally chartered savings and loan association or a

 

state or federally chartered credit union.

 

     (vi) If a purchase agreement signed by a seller and purchaser

 

provides that a deposit be held by an escrowee other than a real

 

estate broker, a licensee in possession of such a deposit shall

 

cause the deposit to be delivered to the named escrowee within 2

 

banking days after the licensee has received notice that an offer

 

to purchase is accepted by all parties.

 

     Sec. 2516. A real estate salesperson shall do both of the

 

following, as applicable:

 

     (a) Convey an offer to purchase to the owner of real estate

 

and, if an action for foreclosure has been commenced against the

 

real estate, to the financial institution, bank, or other entity

 

holding the mortgage. In the case of real estate subject to

 

foreclosure, the offer shall be conveyed to the financial

 

institution, bank, or other entity holding the mortgage during the

 

time of the foreclosure action, including the redemption period.

 

     (b) In the case of real estate subject to foreclosure, the

 

real estate salesperson shall obtain, within 5 business days after

 

receipt of the offer to purchase, a letter of acceptance or

 

rejection from the financial institution, bank, or other entity

 

holding the mortgage. The letter of acceptance or rejection shall

 

be immediately conveyed to the offeror or the buyer's agent, as

 

applicable.