SCS CSHB 257(L&C): "An Act relating to the disclosure requirements for real estate licensees, to disciplinary action against real estate licensees, to private actions and remedies against real estate licensees, and to real estate licensee agency, relationships, and duties; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 257(L&C) 01 "An Act relating to the disclosure requirements for real estate licensees, to disciplinary 02 action against real estate licensees, to private actions and remedies against real estate 03 licensees, and to real estate licensee agency, relationships, and duties; and providing for 04 an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.88.071(a)(3) is amended to read: 07 (3) after hearing, have the authority to suspend or revoke the license of 08 a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 on a 09 licensee who 10 (A) with respect to a real estate transaction 11 (i) made a substantial misrepresentation; 12 (ii) made a false promise likely to influence, persuade, 13 or induce; 14 (iii) in the case of a real estate broker, pursued a
01 flagrant course of misrepresentation or made a false promise through 02 another real estate licensee; 03 (iv) has engaged in conduct that is fraudulent or 04 dishonest; 05 (v) violates AS 08.88.391; 06 (vi) violates AS 08.88.396; 07 (B) procures a license by deceiving the commission, or aids 08 another to do so; 09 (C) has engaged in conduct of which the commission did not 10 have [HAD NO] knowledge at the time the licensee was licensed 11 demonstrating the licensee's unfitness to engage in the business for which the 12 licensee is licensed; 13 (D) knowingly authorizes, directs, connives at, or aids in 14 publishing, distributing, or circulating a material false statement or 15 misrepresentation concerning the licensee's business or concerning real estate 16 offered for sale, rent, or lease, or managed in the course of the licensee's 17 business in this or any other state or concerning the management of an 18 association in the course of a licensee's business in this or another state; 19 (E) if a real estate broker, wilfully violates AS 08.88.171(d) or 20 08.88.291; 21 (F) if an associate real estate broker, claims to be a real estate 22 broker, or, if a real estate salesperson, claims to be a real estate broker or an 23 associate real estate broker; 24 (G) if a real estate broker, employs an unlicensed person to 25 perform activities for which a real estate license is required; 26 (H) if an employed real estate licensee of a real estate broker, 27 fails immediately to turn money or other property collected in a real estate 28 transaction over to the employing real estate broker; 29 * Sec. 2. AS 08.88.181(a) is amended to read: 30 (a) The real estate examinations may include questions on real estate business 31 ethics and standards; arithmetic and accounting; elementary principles of land
01 economics and appraisal; the general principles in state statutes relating to deeds, 02 mortgages, real estate contracts, subdivisions, common interest communities, legal 03 descriptions, building restrictions, real estate licensee relationships, agency law, 04 brokerage, disclosure requirements, trust accounting requirements, and landlord and 05 tenant law; property management ethics and standards; community association 06 management operations, ethics, and standards; and the general provisions of this 07 chapter and of the regulations of the commission. 08 * Sec. 3. AS 08.88.396 is amended to read: 09 Sec. 08.88.396. Licensee relationships, disclosures, and activity 10 [DISCLOSURE OF AGENCY TO PROSPECTIVE BUYERS AND SELLERS]. 11 (a) A person licensed under this chapter shall, when acting as a real estate licensee 12 [AN AGENT] for a prospective seller or lessor of real estate, 13 (1) disclose in writing the licensee's agency relationship with the seller 14 or lessor to each prospective buyer or lessee at the time that the licensee begins to 15 provide specific assistance to locate or acquire real estate for the buyer or lessee, and 16 obtain from each prospective buyer or lessee a signed acknowledgment 17 [ACKNOWLEDGEMENT] that the buyer or lessee is aware of the agency 18 relationship between the licensee and the seller or lessor; and 19 (2) include in the purchase agreement a statement of the agency 20 relationship between the licensee and the seller or lessor. 21 (b) A person licensed under this chapter shall, when acting as a real estate 22 licensee [AN AGENT] for a prospective buyer or lessee of real estate, 23 (1) disclose the licensee's relationship with the buyer or lessee to a 24 prospective seller or lessor of real estate, or to the seller's or lessor's real estate 25 licensee [AGENT], at the time of the initial contact between the licensee and the 26 prospective seller or lessor, or the seller's or lessor's real estate licensee [AGENT], 27 and confirm the relationship in writing as soon as possible after the initial contact; 28 (2) include in the purchase agreement a statement of the agency 29 relationship between the licensee and the buyer or lessee; 30 (3) if the prospective seller or lessor has an unexpired exclusive listing 31 contract for a property, present all offers to purchase that property through the seller's
01 or lessor's real estate licensee [AGENT]; and 02 (4) disclose in writing to all parties to a transaction when the licensee's 03 compensation as real estate licensee [AGENT] for the buyer or lessee is to be paid by 04 anyone other than the buyer or lessee being represented by the licensee. 05 (c) A person licensed under this chapter may act as a real estate licensee [AN 06 AGENT] for both a prospective seller or lessor and a prospective buyer or lessee of 07 real estate only after the licensee informs both the seller or lessor and the buyer or 08 lessee of the dual agency representation [AGENCY] and obtains written consent to 09 the dual agency representation [AGENCY] from both principals. 10 (d) When a change occurs during a transaction that makes a prior written 11 disclosure required by this section incomplete, misleading, or inaccurate, the licensee 12 shall make a revised disclosure, in writing, to all parties to the transaction as soon as 13 possible. The revised disclosure must include the date of the revision and shall be 14 acknowledged in writing by all the parties. However, until the nature of the 15 licensee's relationship with a party is completely established, a revised disclosure 16 is not required under this subsection if the licensee obtains from the party a 17 written preauthorized consent to changes before the changes occur. 18 * Sec. 4. AS 08.88.396 is amended by adding a new subsection to read: 19 (e) In a civil action for the failure of a licensee to comply with the provisions 20 of this section, the plaintiff's remedy is limited to the recovery of actual damages. 21 This subsection does not limit a person's ability to take any other action or pursue any 22 other remedy to which the person may be entitled under other law. 23 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY AND RETROSPECTIVITY. (a) The provisions of this Act apply 26 to a real estate transaction that occurs before, on, or after the effective date of this Act, and to 27 that extent, are retrospective under AS 01.10.090. In this subsection, "real estate transaction" 28 has the meaning given in AS 08.88.990. 29 (b) In addition to the application of AS 08.88.396(e), enacted by sec. 4 of this Act, 30 under (a) of this section, AS 08.88.396(e) applies to an action pending in a court in the state in 31 which a final judgment has not been rendered before the effective date of this Act and, to that