Bill description: HB 456 would require real estate sales associates to provide a copy of any signed agreement to their broker within one business day.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
Under HB 456, real estate sales associates (i.e., Realtors®) would be required to provide a copy of any document signed by a client to their brokerage within one business day and a copy of any complete sales or purchase agreement to both the buyer and seller involved in a transaction. Currently, sales associates are only required to provide a copy of a signed offer to the buyer and seller after it has been fully accepted.
In requiring this copy be made immediately available, HB 456 would infringe on the ability of a private brokerage to operate their business in the manner that works best for their business. The length of time before the brokerage receives a copy of the signed agreement is something that could be determined by policies at each brokerage. The managers of each brokerage have the best understanding of their unique circumstances. Though it may decrease liability risks the sooner a document is received by a broker, as it allows them to more closely monitor the actions of their associates, a one-day period might not be long enough for every broker. For example, a broker working in rural areas of the state might have associates who cannot reach the brokerage each and every day (physically or electronically) to provide a copy a signed document.
If sales associates failed to meet the new requirements under HB 456 they could be subject to a $5,000 penalty and a revocation of their license to practice realty.
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