Various changes regarding the laws governing real estate practice and the licensure of real estate brokers and salespersons and granting rule-making authority

1. The bill clarifies the provisions in current law to provide that an out-of-state broker may only enter into a cooperative agreement with a firm that is listing property for sale or lease.

2. In addition to the provisions in current law that allow cooperative agreements with listing firms, the bill also allows an out-of-state broker representing a person who is seeking to buy or rent property located in this state in a commercial transaction, as defined in the bill, to enter into a cooperative agreement with a real estate firm licensed in this state. Each such cooperative agreement must be limited to a type of property, type of function, geographic area, or other criteria specified in the buyer's or tenant's search parameters, and out-of-state brokers who enter into such cooperative agreements are subject to various requirements and prohibitions.

Criminal convictions and licenses Current law prohibits an applicant from being issued a broker's or salesperson's license from the board if the applicant has been convicted of a felony unless certain conditions have been met, including that three years have have elapsed since the date on which the confinement portion of the applicant's sentence was completed or the applicant was released. The bill limits the provision described above regarding felony convictions so that it only disqualifies an individual from being granted an initial license by the board, and does not prohibit an individual from renewing a license previously granted.

Current law also allows the board to revoke, suspend, or limit the license of any licensee, or reprimand the licensee, if it finds that the licensee has been convicted of a felony described above. The bill instead provides that the board may revoke, suspend, or limit the license of any licensee, or reprimand the licensee if the licensee has been convicted of an offense the circumstances of which substantially relate to real estate practice, consistent with the Fair Employment Law, which generally prohibits an agency from refusing to license an individual because the individual has been convicted of a crime unless he or she has been convicted of an offense the circumstances of which substantially relate to the circumstances of the particular licensed activity.

Other changes The bill makes various other changes regarding real estate practice, including:

1. The bill explicitly prohibits a licensee from negotiating the sale, exchange, purchase, or rental of personal property (i.e., property other than real estate) unless related to a transaction, as defined under current law.

2. The bill creates statutory provisions to govern the practice of advertising by licensees, including provisions governing when a licensee may advertise property.

3. The bill makes a number of changes to certain definitions in the real estate practice law that are used to define the extent of regulated practices and conduct.

4. The bill makes various changes regarding the approval by the board of forms used in real estate practice and the creation of councils to assist the board in performing that function.