Bill Text: MN SF1739 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property management activities requirement for real estate brokers exemption
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-03-13 - HF substituted on Calendar HF2152 [SF1739 Detail]
Download: Minnesota-2011-SF1739-Introduced.html
1.2relating to commerce; specifying the extent of responsibility of real estate
1.3licensees for property management activities on real property owned by the
1.4licensee or by an entity in which the licensee has an ownership interest;amending
1.5Minnesota Statutes 2010, section 82.73, subdivision 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 82.73, subdivision 3, is amended to read:
1.8 Subd. 3. Responsibilities of brokers. (a) Supervision of personnel. A broker
1.9shall adequately supervise the activities of the broker's salespersons and employees.
1.10Supervision includes the ongoing monitoring of listing agreements, purchase agreements,
1.11other real estate-related documents which are prepared or drafted by the broker's
1.12salespersons or employees or which are otherwise received by the broker's office, and the
1.13review of all trust account books and records. If an individual broker maintains more
1.14than one place of business, each place of business shall be under the broker's direction
1.15and supervision. If a brokerage maintains more than one place of business, each place of
1.16business shall be under the direction and supervision of an individual broker licensed to
1.17act on behalf of the brokerage.
1.18The primary broker shall maintain records specifying the name of each broker
1.19responsible for the direction and supervision of each place of business. If an individual
1.20broker, who may be the primary broker, is responsible for supervising more than one
1.21place of business, the primary broker shall, upon written request of the commissioner,
1.22file a written statement specifying the procedures which have been established to ensure
1.23that all salespersons and employees are adequately supervised. Designation of another
1.24broker to supervise a place of business does not relieve the primary broker of the ultimate
1.25responsibility for the actions of licensees.
2.1(b) Preparation and safekeeping of documents. A broker is responsible for the
2.2preparation, custody, safety, and accuracy of all real estate contracts, documents, and
2.3records, even though another person may be assigned these duties by the broker.
2.4(c) Documentation and resolution of complaints. A broker shall investigate and
2.5attempt to resolve complaints made regarding the practices of any individual licensed to
2.6the broker and shall maintain, with respect to each individual licensed to the broker, a
2.7complaint file containing all material relating to any complaints received in writing for
2.8a period of three years.
2.9(d) Disclosure of listed property information. A broker may allow any unlicensed
2.10person, who is authorized by the broker, to disclose any factual information pertaining
2.11to the properties listed with the broker, if the factual information is provided to the
2.12unlicensed person in written form by the broker representing or assisting the seller(s).
2.13(e) Property management functions for individually owned or entity-owned
2.14real estate. A broker shall not be responsible for supervising, nor shall the licensee be
2.15responsible for operating, within the scope of the brokerage or within the requirements of
2.16this chapter, activities that would be considered property management, including leasing,
2.17maintenance, and repair, so long as the real estate being managed is "individually owned"
2.18or "entity-owned" as defined below:
2.19(1) "individually owned" real estate is real property in which the licensee holds an
2.20ownership interest; and
2.21(2) "entity-owned" real estate is real property owned by a corporation, limited
2.22liability company, partnership, or trust, within which entity the licensee holds an
2.23ownership interest as an owner, trustee, partner, officer, or in another beneficiary capacity.
2.24EFFECTIVE DATE.This section is effective the day following final enactment
2.25and applies to property management activities performed on or after that date.
1.3licensees for property management activities on real property owned by the
1.4licensee or by an entity in which the licensee has an ownership interest;amending
1.5Minnesota Statutes 2010, section 82.73, subdivision 3.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 82.73, subdivision 3, is amended to read:
1.8 Subd. 3. Responsibilities of brokers. (a) Supervision of personnel. A broker
1.9shall adequately supervise the activities of the broker's salespersons and employees.
1.10Supervision includes the ongoing monitoring of listing agreements, purchase agreements,
1.11other real estate-related documents which are prepared or drafted by the broker's
1.12salespersons or employees or which are otherwise received by the broker's office, and the
1.13review of all trust account books and records. If an individual broker maintains more
1.14than one place of business, each place of business shall be under the broker's direction
1.15and supervision. If a brokerage maintains more than one place of business, each place of
1.16business shall be under the direction and supervision of an individual broker licensed to
1.17act on behalf of the brokerage.
1.18The primary broker shall maintain records specifying the name of each broker
1.19responsible for the direction and supervision of each place of business. If an individual
1.20broker, who may be the primary broker, is responsible for supervising more than one
1.21place of business, the primary broker shall, upon written request of the commissioner,
1.22file a written statement specifying the procedures which have been established to ensure
1.23that all salespersons and employees are adequately supervised. Designation of another
1.24broker to supervise a place of business does not relieve the primary broker of the ultimate
1.25responsibility for the actions of licensees.
2.1(b) Preparation and safekeeping of documents. A broker is responsible for the
2.2preparation, custody, safety, and accuracy of all real estate contracts, documents, and
2.3records, even though another person may be assigned these duties by the broker.
2.4(c) Documentation and resolution of complaints. A broker shall investigate and
2.5attempt to resolve complaints made regarding the practices of any individual licensed to
2.6the broker and shall maintain, with respect to each individual licensed to the broker, a
2.7complaint file containing all material relating to any complaints received in writing for
2.8a period of three years.
2.9(d) Disclosure of listed property information. A broker may allow any unlicensed
2.10person, who is authorized by the broker, to disclose any factual information pertaining
2.11to the properties listed with the broker, if the factual information is provided to the
2.12unlicensed person in written form by the broker representing or assisting the seller(s).
2.13(e) Property management functions for individually owned or entity-owned
2.14real estate. A broker shall not be responsible for supervising, nor shall the licensee be
2.15responsible for operating, within the scope of the brokerage or within the requirements of
2.16this chapter, activities that would be considered property management, including leasing,
2.17maintenance, and repair, so long as the real estate being managed is "individually owned"
2.18or "entity-owned" as defined below:
2.19(1) "individually owned" real estate is real property in which the licensee holds an
2.20ownership interest; and
2.21(2) "entity-owned" real estate is real property owned by a corporation, limited
2.22liability company, partnership, or trust, within which entity the licensee holds an
2.23ownership interest as an owner, trustee, partner, officer, or in another beneficiary capacity.
2.24EFFECTIVE DATE.This section is effective the day following final enactment
2.25and applies to property management activities performed on or after that date.
