Real estate brokers and broker companies.

Authors: Representative Don Lehe


Defines "broker company" as a partnership, limited liability company, corporation, or individual acting as a sole proprietorship that is licensed as a broker and, for consideration, undertakes or offers to undertake certain activities with respect to real estate. Provides that an individual, to obtain a broker license, must associate with a broker company (instead of with a managing broker). Provides that a partnership, a limited liability company, or a corporation, to obtain a broker license, must include a licensed broker who qualifies as a managing broker. Defines "managing broker" as an individual who is a broker and whom the real estate commission holds responsible for the actions of the licensees affiliated with the broker company. Provides that an individual, to become a managing broker, must have held an active broker's license for at least two years. Provides that a broker may act only under the auspices of a particular managing broker, may be associated with only one managing broker, must maintain evidence of licensure in the managing broker's office, may advertise only in the name of the managing broker, and may not maintain a real estate office apart from the office provided by the managing broker. Provides that an individual who was the designated individual broker of a partnership broker, corporate broker, or limited liability company broker on June 30, 2014, became a managing broker on July 1, 2014. Requires a person conducting a broker course to have a permit issued by the real estate commission. Defines "in-house agency relationship" as an agency relationship involving two or more clients who are represented by different licensees within the same broker company. Provides that, in an in-house agency relationship, an individual licensee affiliated with a broker company represents only the client with which the licensee is working. Requires a broker to complete at least eight hours of approved continuing education per year (instead of 12 hours) but requires a broker to complete at least 36 hours of approved continuing education per three year cycle. Makes corresponding changes in current law.