Delaware Senate Bill 154 (Prior Session Legislation)

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Completed Legislative Action
Spectrum: Slight Partisan Bill (Democrat 6-3)
Status: Passed on August 3 2011 - 100% progression
Action: 2011-08-03 - Signed by Governor
Text: Latest bill text (Engrossed) [HTML]

This bill is the result of recommendations made by the Joint Sunset Committee. The bill presents extensive revisions to make the Real Estate Commission’s licensing law consistent with other Title 24 boards and commissions. In addition, the amendments include new language and terms to coincide with modern practices and to provide greater clarity for practitioners and the public. In particular, the bill replaces and updates provisions relating to Commission objectives and powers and duties, licensure requirements, reciprocity, grounds for discipline and sanctions. The bill includes a definition of the term “Comparative Market Analysis” in order to delineate the scope of permissible activities for a licensee and to clarify that a Comparative Market Analysis is not an appraisal. The bill also includes a definition of “Property Management Services” and an exemption for a provider of Property Management Services. This additional language specifies that an individual engaging in Property Management Services is exempt from the statute, except to the extent that the individual is involved in selling or leasing. The bill amends the “Powers and Duties” section of the statute in order to give the Commission the explicit authority to issue cease and desist orders and impose fines for unlicensed practice. The bill makes explicit that there are three licensure categories in the real estate profession. Currently, there are just two licensure categories referenced in the statute: broker and salesperson. The term “broker of record,” designating the individual responsible for the brokerage organization, is mentioned only in the Commission’s Rules and Regulations. The bill designates the three licensure categories as Broker (formerly broker of record), Associate Broker (formerly broker) and Salesperson. These three terms will create greater protection for the public by making clear that the Broker is the individual ultimately responsible for the real estate transaction. The bill also creates standards for reciprocal licensure. Currently, out-of-state applicants are issued non-resident licenses. The amendment creates several methods whereby an out-of-state applicant may obtain a Delaware license. The bill also adds requirements for licensure for all applicants to ensure that the Commission has the authority to consider the applicant’s disciplinary history in other jurisdictions. The bill gives the Commission the authority to grant additional licenses to licensees, where the Brokers are notified and agree with the arrangement. This amendment brings Delaware into line with practices in other states. The bill also requires licensees to disclose, at the time of renewal, any criminal convictions since the last renewal. With respect to disciplinary matters, the bill gives the Commission the authority to permanently revoke a license. The bill also includes a provision for temporary suspension of a license, pending a hearing, where the activity of the licensee presents a clear and immediate danger to the public health, welfare or safety. The new provision gives the authority to temporarily suspend a license to the Secretary of State, with the concurrence of the Commission Chairperson. The bill gives the public easier access to the Guaranty Fund. Currently, an aggrieved party must file a claim with the Guaranty Fund within 60 days after filing a lawsuit. Pursuant to the amendment to the statute, an aggrieved party must give notice within 60 days after obtaining a judgment. The bill significantly amends the statute in connection with agency relationships to afford greater protection to the public. With the amendments, statutory agency will be presumed and not predicated on the signing of the consumer information statement. Further, statutory agency begins on first contact between the licensee and the member of the public. With this amendment, the member of the public will be afforded a range of protections, such as the duty of confidentiality. This bill becomes effective six months after its enactment into law.

An Act To Amend Title 24 Of The Delaware Code Relating To Real Estate Brokers And Real Estate Salespersons.

Rep. John Atkins [D]	Rep. Edward Bennett [D]	Sen. George Bunting [D]	Sen. Michael Katz [D]
Rep. John Kowalko [D]	Sen. Robert Marshall [D]	Rep. Michael Ramone [R]	Rep. Daniel Short [R]
Sen. Gary Simpson [R]

2011-06-30 - House - House Third Reading (Y: 40 N: 0 NV: 1 Abs: 0) [PASS]
2011-06-29 - Senate - Senate Third Reading (Y: 21 N: 0 NV: 0 Abs: 0) [PASS]

Date	Chamber	Action
2011-08-03		Signed by Governor
2011-06-30		Passed by House of Representatives. Votes: Passed 40 YES 0 NO 1 NOT VOTING 0 ABSENT 0 VACANT
2011-06-30		Necessary rules are suspended in House
2011-06-30		Introduced and Assigned to Sunset Committee (Policy Analysis & Government Accountability) Committee in House
2011-06-29		Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2011-06-29		Amendment SA 2 - Passed by Senate. Votes: Passed 20 YES 0 NO 0 NOT VOTING 1 ABSENT 0 VACANT
2011-06-29		Amendment SA 2 - Introduced in Senate
2011-06-29		Amendment SA 1 - Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
2011-06-29		Reported Out of Committee (SUNSET) in Senate with 4 On Its Merits
2011-06-28		Amendment SA 1 - Introduced and Placed With the Bill in Senate
2011-06-23		Assigned to Sunset Committee in Senate

Type	Source
Summary	http://legis.delaware.gov/LIS/lis146.nsf/2bede841c6272c888025698400433a04/60ea60e782adddf5852578b10062fe03?OpenDocument
Text	http://legis.delaware.gov/LIS/lis146.nsf/vwLegislation/SB+154/$file/legis.html?open
Text	http://legis.delaware.gov/LIS/lis146.nsf/EngrossmentsforLookup/SB+154/$file/Engross.html?open
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/00520b5b9a0c72c3852578be006e921a?OpenDocument
Roll Call	http://legis.delaware.gov/LIS/lis146.nsf/7712cf7cc0e9227a852568470077336f/67ffa4c8b1ab9f45852578c000080384?OpenDocument