HB 33: "An Act relating to real estate licensing and the real estate surety fund; and providing for an effective date."
00HOUSE BILL NO. 33 01 "An Act relating to real estate licensing and the real estate surety fund; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.88.041 is amended to read: 05 Sec. 08.88.041. Qualifications of commission members. (a) Five members 06 of the commission must be real estate services licensees [BROKERS OR ASSOCIATE 07 BROKERS] who have held an endorsement to practice [BEEN LICENSED] real 08 estate sales, property management, or community association management 09 [BROKERS OR LICENSED ASSOCIATE BROKERS] in Alaska for at least three 10 years before appointment. Two members of the board must be public members in 11 accordance with AS 08.01.025. 12 (b) Of the five members of the commission who must be real estate services 13 licensees [BROKERS OR ASSOCIATE BROKERS], 14 (1) one member shall be from the First Judicial District, one shall be
01 from the Second Judicial District, one shall be from the Third Judicial District, one 02 shall be from the Fourth Judicial District, and one shall be from the state at large; 03 however [. HOWEVER], if no [LICENSED] real estate services licensee [BROKER 04 OR LICENSED ASSOCIATE BROKER] is eligible or available for appointment from 05 the Second Judicial District, then two [LICENSED] real estate services licensees 06 [BROKERS OR LICENSED ASSOCIATE BROKERS] shall be appointed from the 07 state at large; and 08 (2) at least one member shall hold an endorsement to practice 09 property management or community association management. 10 * Sec. 2. AS 08.88.051(c) is amended to read: 11 (c) The commission shall elect its officers at the first meeting of each fiscal 12 year. 13 * Sec. 3. AS 08.88.061 is amended to read: 14 Sec. 08.88.061. Assistants. Notwithstanding contrary provisions of 15 AS 08.01.050, the [THE] commission may assign or designate [USE] assistants to 16 (1) issue licenses and endorsements to applicants who meet the 17 qualifications for licensure established under this chapter; 18 (2) prepare questions on examinations; 19 (3) administer and [(2)] grade examination; 20 (4) certify courses required under this chapter; 21 (5) approve instructors to teach courses required under this 22 chapter; and 23 (6) negotiate terms of payment of fines and other money due under 24 this chapter. 25 * Sec. 4. AS 08.88.071 is amended to read: 26 Sec. 08.88.071. Duties of the commission. (a) The commission shall 27 (1) determine whether [PASS ON QUALIFICATIONS OF] applicants 28 meet requirements for licenses and endorsements under this chapter and issue 29 licenses and endorsements to those who qualify; 30 (2) prepare and grade examinations; 31 (3) after hearing, have the authority to suspend or revoke the license
01 of a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 02 on a licensee who 03 (A) with respect to a real estate transaction 04 (i) made a substantial misrepresentation; 05 (ii) made a false promise likely to influence, persuade, 06 or induce; 07 (iii) in the case of a real estate services broker, pursued 08 a flagrant course of misrepresentation or made a false promise through 09 an agent [, ASSOCIATE REAL ESTATE BROKER,] or other real 10 estate services licensee [SALESMAN]; 11 (iv) has engaged in conduct that is fraudulent or 12 dishonest; 13 (v) violates AS 08.88.391; 14 (B) procures a license by deceiving the commission, or aids 15 another to do so; 16 (C) has engaged in conduct of [IN] which the commission had 17 no knowledge at the time the licensee was licensed demonstrating the licensee's 18 unfitness to engage in the business for which the licensee is licensed; 19 (D) knowingly authorizes, directs, connives at or aids in 20 publishing, distributing, or circulating a material false statement or 21 misrepresentation concerning the licensee's business or concerning real estate 22 offered for sale, rent, or lease, or managed in the course of the licensee's 23 business in this or any other state or concerning the management of an 24 association in the course of a licensee's business in this or another state; 25 (E) if a real estate services broker, wilfully violates 26 AS 08.88.171(d) or 08.88.291; 27 (F) [IF AN ASSOCIATE REAL ESTATE BROKER,] claims 28 to hold a real estate services license status, endorsement, or specialty other 29 than the status, endorsement, or specialty actually held [BE A REAL 30 ESTATE BROKER, OR, IF A REAL ESTATE SALESMAN, CLAIMS TO BE 31 A REAL ESTATE BROKER OR ASSOCIATE REAL ESTATE BROKER];
01 (G) if a real estate services broker, employs an unlicensed 02 person to perform activities for which a real estate services license is 03 required [ASSOCIATE REAL ESTATE BROKER OR REAL ESTATE 04 SALESMAN]; 05 (H) if an employed real estate services licensee of a 06 [ASSOCIATE] real estate services broker [OR REAL ESTATE SALESMAN], 07 fails immediately to turn money or other property collected in a real estate 08 sales transaction, a property management transaction, or a community 09 association management transaction over to the employing real estate broker; 10 (4) prosecute, through the Department of Commerce and Economic 11 Development [LAW], violations of [THE PROVISIONS OF] this chapter or lawful 12 regulations adopted under this chapter; 13 (5) release for publication [PUBLISH, ON THREE CONSECUTIVE 14 WEEKENDS] in a newspaper of general circulation in the locale of the offending 15 person's principal office registered with the commission, notice of [LICENSED 16 UNDER THIS CHAPTER,] disciplinary action taken by the commission against a 17 person licensed under this chapter; 18 (6) publish in the commission's newsletter a summary of 19 disciplinary action taken by the commission against a person licensed under this 20 chapter; 21 (7) issue a temporary permit to the personal representative of the estate 22 of a deceased real estate services broker or to another [SOME OTHER] person 23 designated by the commission with the approval of the personal representative of the 24 estate in order to secure proper administration in concluding the affairs of the decedent 25 broker's real estate business; 26 (8) issue a temporary permit to the personal representative of a 27 legally incompetent real estate services broker or to another person designated by 28 the commission with the approval of the personal representative of the broker in 29 order to secure proper administration in temporarily managing the real estate 30 business of the broker; 31 (9) [(7)] establish and periodically revise the form of the seller's
01 property disclosure statement required by AS 34.70.010. 02 (b) When an award is made from the real estate surety fund under this chapter 03 [IN REIMBURSEMENT OF LOSSES SUFFERED BY A CLAIMANT AS A 04 RESULT OF FRAUD, MISREPRESENTATION, DECEIT, OR CONVERSION OF 05 TRUST FUNDS ON THE PART OF A LICENSED BROKER, ASSOCIATE 06 BROKER, OR SALESMAN], the commission shall suspend [MAY CONSIDER THE 07 HEARING ON THE CLAIM TO BE A HEARING ON THE SUSPENSION OF] the 08 license of the real estate services licensee whose actions formed the basis of the 09 award [BROKER, ASSOCIATE BROKER, OR SALESMAN, AND MAY SUSPEND 10 THE LICENSE OF THE BROKER, ASSOCIATE BROKER, OR SALESMAN]. A 11 suspension ordered under this subsection shall be lifted if the licensee [BROKER, 12 ASSOCIATE BROKER, OR SALESMAN] reaches an agreement with the commission 13 on terms and conditions for the repayment to the real estate surety fund of the money 14 awarded to the claimant and the costs of hearing the claim under AS 08.88.465. The 15 suspension shall be reimposed if the licensee [BROKER, ASSOCIATE BROKER, OR 16 SALESMAN] violates the terms of a repayment agreement entered into under this 17 subsection. 18 (c) For the purposes of (a)(3) of this section, the conduct of an employee is 19 [NOT] attributable to a real estate services broker if [UNLESS] the [REAL ESTATE] 20 broker has actual knowledge that the employee is going to engage in the conduct and 21 agrees to the conduct, either actively or by remaining silent, or ratifies the conduct 22 after it is engaged in. 23 * Sec. 5. AS 08.88.081 is amended to read: 24 Sec. 08.88.081. Commission regulations. The commission shall adopt 25 regulations necessary to carry out the purposes of this chapter, including regulations 26 (1) setting ethical standards and minimum standards of professional 27 conduct and proficiency for licensees; and 28 (2) defining terms used in this chapter or in other regulations 29 adopted to implement this chapter. 30 * Sec. 6. AS 08.88.091(a) is amended to read: 31 (a) The commission may conduct and assist in conducting real estate clinics,
01 meetings, courses, or institutes for the general public, licensees, and commission 02 members and staff. The commission also may 03 (1) assist libraries and educational institutions in sponsoring studies and 04 programs; [AND] 05 (2) publish informational materials for the purpose of raising the 06 standards of the real estate business, increasing [AND] the competency of licensees, 07 and informing the general public and commission members and staff about real 08 estate related topics; 09 (3) provide instructor training for the enhancement of real estate 10 education programs; and 11 (4) recover all or a portion of the expenses incurred under this 12 subsection by charging fees for participation in educational programs and for 13 publications of the commission; these fees shall be deposited in the real estate 14 surety fund. 15 * Sec. 7. AS 08.88.091(b) is amended to read: 16 (b) An applicant for licensure under AS 08.88.171 [AS 08.88.171(c)] must 17 complete the applicable [20 HOURS OF] education requirements adopted 18 [APPROVED] by the commission under its regulations before the person may be 19 licensed under that section [SUBSECTION]. 20 * Sec. 8. AS 08.88.091(d) is amended to read: 21 (d) A person who is licensed under this chapter must complete the applicable 22 [20 HOURS OF] continuing education requirements adopted [APPROVED] by the 23 commission under its regulations before the person's license may be renewed. 24 * Sec. 9. AS 08.88.091(e) is amended to read: 25 (e) In order for an educational course to be recognized for credit under 26 this section, [THE COMMISSION MAY NOT APPROVE AN EDUCATION OR 27 CONTINUING EDUCATION COURSE REQUIRED UNDER THIS SECTION 28 UNLESS THE COMMISSION CERTIFIES] the course outline and [APPROVES] the 29 instructor of the course must have been approved by the commission or the 30 commission's designee before the course was [IS] conducted. 31 * Sec. 10. AS 08.88.091 is amended by adding a new subsection to read:
01 (f) The commission shall establish by regulation the educational and continuing 02 educational requirements for each type of license and endorsement issued by the 03 commission. 04 * Sec. 11. AS 08.88.161 is amended to read: 05 Sec. 08.88.161. License required. Unless licensed as a real estate services 06 broker, associate [REAL ESTATE] broker, or practitioner with an endorsement to 07 practice real estate sales [REAL ESTATE SALESMAN], a natural person, foreign 08 or domestic corporation, [OR] partnership, [OR] limited partnership, or other entity 09 may not 10 (1) sell, exchange, [RENT, LEASE,] auction, or purchase real estate; 11 (2) list real estate for sale, exchange, [RENT, LEASE,] auction, or 12 purchase; 13 (3) [COLLECT RENT FOR THE USE OF REAL ESTATE; 14 (4)] as a business, buy, sell, or deal in 15 (A) options in real estate; or 16 (B) options in improvements to real estate; or 17 (4) [(5)] assist in or direct the procuring of prospective buyers or the 18 negotiation of a transaction that [WHICH] results or is calculated to result in the sale, 19 exchange, [RENT, LEASE,] auction, or purchase of real estate [; 20 (6) HOLD OUT TO THE PUBLIC AS BEING ENGAGED IN THE 21 BUSINESS OF DOING ANY OF THE THINGS LISTED IN THIS SECTION; 22 (7) ATTEMPT OR OFFER TO DO ANY OF THE THINGS LISTED 23 IN THIS SECTION. 24 (8) REPEALED]. 25 * Sec. 12. AS 08.88.161 is amended by adding new subsections to read: 26 (b) Unless licensed as a real estate services broker, associate broker, or 27 practitioner with an endorsement to practice real estate property management, a natural 28 person, foreign or domestic corporation, partnership, limited partnership, or other entity 29 may not 30 (1) rent or lease real estate; 31 (2) list real estate for rent or lease;
01 (3) collect rent for the use of real estate; 02 (4) assist in or direct the procuring of prospective tenants or the 03 negotiation of a transaction that results or is intended to result in the rental or leasing 04 of real estate; or 05 (5) supervise, contract for, or arrange for the physical, administrative, 06 or financial maintenance of real estate. 07 (c) Unless licensed as a real estate services broker, associate broker, or 08 practitioner with an endorsement to practice community association management, a 09 natural person, foreign or domestic corporation, partnership, limited partnership, or 10 other entity may not 11 (1) manage, or negotiate for a contract to manage, a community 12 association; or 13 (2) assist in or direct the management of the affairs of a community 14 association. 15 (d) Unless licensed as a real estate services broker, associate broker, or 16 practitioner with the appropriate endorsement, a natural person, foreign or domestic 17 corporation, partnership, limited partnership, or other entity may not 18 (1) hold out to the public as being engaged in the business of doing any 19 of the activities listed in this section; 20 (2) attempt or offer to do any of the activities listed in this section; or 21 (3) accept or pay a fee for the performance of any of the activities 22 listed in this section except as otherwise specifically provided in the chapter. 23 (e) Notwithstanding AS 08.01.075 and in addition to punishment under 24 AS 08.88.401(d), the commission may levy a civil fine of (1) $5,000, or (2) the 25 amount of gain realized plus $5,000, whichever is greater, for a violation of this 26 section. An action to levy a civil fine under this subsection may be combined with an 27 action for an injunction under AS 08.88.037. 28 * Sec. 13. AS 08.88 is amended by adding a new section to read: 29 Sec. 08.88.168. Endorsements. (a) A natural person is eligible for a real 30 estate services license only by qualifying for one or more specialty endorsements. 31 (b) A real estate services licensee with an endorsement is eligible for an
01 additional endorsement upon meeting the requirements for the additional endorsement. 02 (c) A real estate services licensee may concurrently hold a combination of 03 endorsements in sales, property management, and community association management. 04 (d) An employed real estate services licensee may hold an endorsement to 05 practice a real estate specialty only while employed by a broker endorsed in the same 06 specialty. 07 * Sec. 14. AS 08.88.171 is amended to read: 08 Sec. 08.88.171. Entitlement to license and endorsements. (a) A natural 09 person qualifies [IS ELIGIBLE] for a real estate services broker license if the person 10 passes the [REAL ESTATE] brokers examination for sales, property management, 11 or community association management, [IF THE PERSON] applies for a license 12 with the appropriate endorsement within six months after the [PERSON HAS 13 TAKEN THE REAL ESTATE BROKERS] examination, [IF THE PERSON] furnishes 14 satisfactory proof of successful completion of the education requirements of 15 AS 08.88.091, [IF THE PERSON] has had at least 24 months of active and continuous 16 experience as a [LICENSED] real estate services practitioner within the 36 months 17 immediately preceding application for the broker license and endorsement, 18 [SALESMAN, IF THE PERSON] is not under indictment for, or seven years have 19 elapsed since the person has completed a sentence imposed upon conviction of, 20 forgery, theft, extortion, conspiracy to defraud creditors, or any other felony involving 21 moral turpitude, and [IF THE PERSON] is an owner of a real estate business or 22 employed by a corporation or partnership as a real estate services broker in the 23 specialty area for which the broker holds an endorsement [BY A CORPORATION 24 OR A PARTNERSHIP,] and [IF] that corporation or partnership does not have an 25 existing [LICENSED] broker in that specialty. Unless the broker fails to renew the 26 real estate services license or the endorsement [PAY THE BIENNIAL RENEWAL 27 FEE] or unless the broker's license is suspended or revoked [UNDER 28 AS 08.88.071(a)(3)], the real estate services broker's license and endorsement 29 continues in effect as [SO] long as the broker is an owner of a real estate business [,] 30 or the broker is employed by a corporation or a partnership as a real estate services 31 broker in the area for which the broker holds an endorsement [BY A
01 CORPORATION OR A PARTNERSHIP]. If the broker stops being an owner of a 02 real estate business [,] or stops being employed by a corporation or partnership as 03 a real estate services broker in the area for which the broker holds an endorsement 04 [BY A CORPORATION OR PARTNERSHIP], the broker's license and endorsement 05 are [IS] suspended from the time the broker stops until 06 (1) the broker again becomes an owner of a real estate business or is 07 again employed as a real estate services broker by a corporation or a partnership in 08 a specialty area for which the broker holds an endorsement; or 09 (2) the broker is employed by another [A LICENSED REAL ESTATE 10 BROKER] as an associate [REAL ESTATE] broker, in which case the real estate 11 services broker license shall be [IS] returned to the commission by the broker, and 12 the commission shall issue [ISSUES] the broker a real estate services [AN] associate 13 [REAL ESTATE] broker license with the same endorsement formerly held in 14 conjunction with the broker license. 15 (b) A natural person is eligible for a real estate services [AN] associate 16 [REAL ESTATE] broker license if the person passes the real estate brokers 17 examination for sales, property management, or community association 18 management, [IF THE PERSON] applies for the [A] license and endorsement within 19 six months after [THE PERSON HAS TAKEN] the examination, [IF THE PERSON] 20 submits satisfactory proof of successful completion of the education requirements of 21 AS 08.88.091, [IF THE PERSON] has had at least 24 months of active and continuous 22 experience as a [LICENSED] real estate services practitioner within the 36 months 23 immediately preceding application for the license and endorsement, [SALESMAN, 24 IF THE PERSON] is not under indictment for, or five years have elapsed since the 25 person has completed a sentence imposed upon conviction of, forgery, theft, extortion, 26 conspiracy to defraud creditors, or any other felony involving moral turpitude, and [IF 27 THE PERSON] is employed by a [LICENSED] real estate services broker as a real 28 estate services associate broker in a specialty area for which both the broker and 29 the associate broker are endorsed [AS AN ASSOCIATE REAL ESTATE 30 BROKER]. Unless the associate broker fails to renew the real estate services license 31 and endorsement [PAY THE BIENNIAL RENEWAL FEE] or unless the associate
01 broker's license is suspended or revoked [UNDER AS 08.88.071(a)(3)], the associate 02 [REAL ESTATE] broker's license and endorsement continue [CONTINUES] in 03 effect as [SO] long as the associate broker is employed by a [LICENSED REAL 04 ESTATE] broker as an associate broker in a specialty for which both the broker and 05 the associate broker are endorsed. If the associate broker stops being employed by 06 an appropriate [A LICENSED REAL ESTATE] broker, the associate broker's license 07 and endorsement are [IS] suspended from the time the associate broker stops until 08 (1) the associate broker again is employed by a real estate services 09 broker as an associate broker in a specialty for which both the broker and associate 10 broker are endorsed; or 11 (2) the associate broker becomes an owner of a real estate business or 12 is employed as a real estate services broker by a corporation or partnership, in 13 which case the [ASSOCIATE BROKER'S ASSOCIATE] real estate services associate 14 broker license shall be [IS] returned to the commission by the associate broker, and 15 the commission shall issue [ISSUES] the associate broker a real estate services broker 16 license with the same endorsement formerly held in conjunction with the associate 17 broker license. 18 (c) A natural person is eligible for a real estate services practitioner 19 [SALESMAN] license if the person passes the real estate practitioner [SALESMAN] 20 examination for sales, property management, or community association 21 management, [IF THE PERSON] applies for the [A] license and endorsement within 22 six months after [THE PERSON HAS TAKEN] the examination, [IF THE PERSON] 23 submits satisfactory proof of successful completion of the education requirements of 24 AS 08.88.091, [IF THE PERSON] is at least 19 years old, [IF THE PERSON] is not 25 under indictment for forgery, theft, extortion, conspiracy to defraud creditors, or any 26 other felony involving moral turpitude, or, if convicted of such an offense, the person 27 has completed the sentence imposed upon conviction, and [IF THE PERSON] is 28 employed by a real estate services broker with the same endorsement held by the 29 practitioner. Unless the practitioner [SALESMAN] fails to renew the real estate 30 license and endorsement [PAY THE BIENNIAL RENEWAL FEE] or unless the 31 practitioner's [REAL ESTATE SALESMAN'S] license is suspended or revoked under
01 AS 08.88.071(a)(3), a real estate practitioner's [SALESMAN'S] license continues in 02 effect as [SO] long as the practitioner [SALESMAN] is employed as a real estate 03 services practitioner [SALESMAN] by a [LICENSED] real estate services broker 04 with the same endorsement held by the practitioner. If the practitioner 05 [SALESMAN] stops being employed as a real estate services practitioner by an 06 appropriate broker [SALESMAN], the practitioner's [REAL ESTATE 07 SALESMAN'S] license is suspended from the time the practitioner [SALESMAN] 08 stops until the practitioner [SALESMAN] again is employed as a real estate services 09 practitioner [SALESMAN] by a [LICENSED] real estate services broker with the 10 same endorsement held by the practitioner. 11 (d) A real estate services licensee shall promptly inform the commission of 12 a change in business association that affects the status of the licensee's license or 13 endorsement under this section. 14 * Sec. 15. AS 08.88 is amended by adding a new section to read: 15 Sec. 08.88.173. Insurance requirement. (a) A real estate services licensee 16 shall, as a condition of obtaining, retaining, or renewing a real estate services license, 17 carry errors and omissions insurance to cover all activities for which the person is 18 licensed, or is to be licensed, under this chapter. 19 (b) The commission shall provide to each licensee the opportunity to purchase 20 the insurance required under this section by contracting with an insurance provider for 21 a guaranty of coverage for each licensee. The contract under this subsection is subject 22 to competitive sealed bidding requirements under AS 36.30. The commission shall 23 determine the terms and conditions of coverage required under this section, including 24 the minimum limits of coverage and the permissible deductibles and exemptions. A 25 policy obtained under this subsection shall be available to every real estate services 26 licensee with no right of cancellation of any particular licensee's coverage on the part 27 of the insurance provider except for nonpayment of premium or loss of license or 28 endorsement. 29 (c) A licensee who obtains errors and omissions insurance by a means other 30 than through the commission's contract under (b) of this section shall obtain insurance 31 that meets or exceeds the minimum requirements established by the commission in
01 regulations. The regulations adopted under this subsection may not require terms and 02 conditions, minimum coverage requirements, or permissible deductibles or exemptions 03 that are different from those required under a contract covered by (b) of this section. 04 A licensee who obtains insurance coverage under this subsection shall file with the 05 commission a certificate of coverage that demonstrates that the policy meets or exceeds 06 the terms and conditions required by the commission. 07 (d) If the commission is unable to obtain coverage for all licensees who choose 08 to participate in the commission's insurance program at a cost to each licensee of less 09 than $100 a year, the commission shall report that fact to the governor. During the 10 time that insurance is unavailable through the commission as described in this 11 subsection, the provisions of (a) - (c) of this section may not be enforced, but the 12 commission shall continue to attempt to contract for an insurance guaranty that will 13 offer coverage for less than $100 a year a licensee. 14 * Sec. 16. AS 08.88.181 is amended to read: 15 Sec. 08.88.181. Content and purpose of examination. (a) The real estate 16 services examinations [EXAMINATION] may include [, BUT IS NOT 17 NECESSARILY LIMITED TO,] questions on real estate business ethics and 18 standards; arithmetic; elementary principles of land economics and appraisal; the 19 general principles in state statutes relating to deeds, mortgages, real estate contracts, 20 subdivisions, legal descriptions, building restrictions, agency, disclosure requirements, 21 trust accounting requirements, landlord and tenant law, property management 22 ethics and standards, accounting, community association management ethics and 23 standards, nonprofit corporation creation and operation, and brokerage; and the 24 general provisions of this chapter and of the regulations of the commission. 25 (b) The examination for each level of licensure and for each endorsement 26 must include similar questions on basic real estate information, but the precise 27 content and difficulty shall vary so that each examination includes questions 28 directly related to the competencies necessary to practice at a specific level of 29 licensure and for a particular endorsement [REAL ESTATE SALESMAN 30 EXAMINATION COVERS THE SAME SUBJECTS AS THE REAL ESTATE 31 BROKER EXAMINATION, BUT IS LESS DIFFICULT].
01 (c) The only purpose of an examination under this chapter is to disqualify 02 those whose lack of competence [ABILITY] to perform functions required of 03 professionals [PARTICIPATE] in real estate sales, property management, and 04 community association management [TRANSACTIONS] would create a serious risk 05 of [SERIOUS] financial loss to members of the public. 06 * Sec. 17. AS 08.88.191(b) is amended to read: 07 (b) If the commission authorizes the department to contract with a national 08 testing service to prepare, administer, and grade examinations, 09 (1) the commission or its designee shall review the examination and 10 approve its contents; 11 (2) application for the examination, accompanied by the proper filing 12 fee, may be transmitted by the applicant directly to the national testing service. 13 * Sec. 18. AS 08.88.201 is amended to read: 14 Sec. 08.88.201. Reexamination. A person who fails an examination may 15 apply for a subsequent examination, but shall pay the application fee with [FOR] each 16 application. 17 * Sec. 19. AS 08.88.221 is amended to read: 18 Sec. 08.88.221. Fees. The Department of Commerce and Economic 19 Development shall set fees under AS 08.01.065 for a real estate services [BROKER, 20 ASSOCIATE BROKER, OR SALESMAN] licensee or applicant for the following: 21 (1) examination; 22 (2) reciprocal licensing [RECIPROCITY]; 23 (3) initial license and endorsement; 24 (4) renewal of an active license and endorsement; 25 (5) renewal of an inactive license and endorsement; 26 (6) amending or transferring a license or endorsement; 27 (7) publications offered by the commission; 28 (8) courses and seminars offered by the commission; 29 (9) reinstatement of a lapsed license and endorsement; 30 (10) changes to registered office information; 31 (11) course certification and recertification; and
01 (12) instructor approval and renewal of approval. 02 * Sec. 20. AS 08.88.241 is repealed and reenacted to read: 03 Sec. 08.88.241. Reinstatement of lapsed license. (a) A person whose real 04 estate services license has lapsed for less than 30 days is eligible for reinstatement of 05 the license by providing the required application, licensing fees, applicable late fees, 06 and proof of continuing education as required by AS 08.88.091 for the licensing period 07 during which the license was inactive or lapsed. 08 (b) A person whose real estate services license has lapsed for more than 30 09 days and less than 24 months is eligible for reinstatement of the license if the person 10 provides the required application, license and endorsement fees, proof of continuing 11 education as required by AS 08.88.091 for licensing periods during which the license 12 was inactive or lapsed, and an additional fee in an amount equal to the biennial 13 licensing fee. 14 (c) A real estate services licensee whose license or endorsement has been 15 lapsed for more than 24 months is not eligible for reinstatement of the license or 16 endorsement and is eligible for the license or endorsement only by meeting the 17 qualifications applicable to initial licensure under AS 08.88.168 - 08.88.171. 18 * Sec. 21. AS 08.88.251 is amended to read: 19 Sec. 08.88.251. Inactive license. (a) A real estate services licensee who 20 intends to [PERSON LICENSED BY THE COMMISSION MAY] become inactive 21 shall return [BY RETURNING] to the commission the person's license certificate and 22 a completed inactivation form provided by the commission along with any 23 applicable fees. [IN THE FORM, THE PERSON SHALL STATE THE DATE ON 24 WHICH THE PERSON INTENDS TO BECOME INACTIVE. THE PERSON'S 25 INACTIVE STATUS BEGINS ON THE DATE STATED.] The commission shall 26 issue the person an inactive license certificate. 27 (b) An inactive licensee may not attempt or offer to do any of the activities 28 listed in AS 08.88.161, but may receive commissions or other payments from the 29 licensee's former employer for services performed while actively licensed 30 [EXCEPT AS OTHERWISE ALLOWED FOR UNLICENSED PERSONS UNDER 31 AS 08.88.165].
01 (c) A person who has an [IS] inactive license certificate under (a) of this 02 section may reinstate the license to [BECOME] active status by applying for an 03 active license and paying the required fees. [IN THE APPLICATION FORM THE 04 PERSON SHALL STATE THE DATE ON WHICH THE PERSON INTENDS TO 05 BECOME ACTIVE. THE PERSON'S ACTIVE STATUS BEGINS ON THE DATE 06 STATED. THE COMMISSION SHALL SEND THE PERSON A LICENSE 07 CERTIFICATE.] A person is eligible for change from an inactive to an active status 08 under this subsection only [WITHOUT EXAMINATION] if the person has not been 09 in inactive status for more than 24 months [TWO YEARS]. If the person has been 10 in inactive status for more than 24 months [TWO YEARS], the person is required 11 to meet the requirements for initial licensure in order to be licensed under this 12 chapter again [TAKE AN EXAMINATION]. 13 * Sec. 22. AS 08.88 is amended by adding a new section to article 3 to read: 14 Sec. 08.88.262. Reciprocal licensing. A person who holds a valid active real 15 estate license issued by a state or other jurisdiction with which the commission has 16 negotiated a reciprocal licensing agreement shall be granted an equivalent real estate 17 services license in this state if the person applies to the commission and pays the 18 required fees. 19 * Sec. 23. AS 08.88.263 is amended to read: 20 Sec. 08.88.263. License by endorsement. A person who holds a valid active 21 real estate license issued by a [ANOTHER] state or other jurisdiction with which 22 the commission has not negotiated a reciprocal licensing agreement shall be 23 granted an equivalent Alaska real estate license if that person [:] 24 (1) passes the portion of the real estate examination that [WHICH] 25 examines on Alaska law; [AND] 26 (2) meets the requirements of AS 08.88.171 other than the 27 requirement to pass the portions of the real estate examination that do not 28 examine on Alaska law; however, the applicant may demonstrate compliance with 29 the education requirements of AS 08.88.091 by providing proof of comparable 30 education even through the courses or instructors may not have been certified by 31 the commission; and
01 (3) provides to the satisfaction of the commission proof of licensure 02 in the other state or jurisdiction. 03 * Sec. 24. AS 08.88.281 is amended to read: 04 Sec. 08.88.281. Real estate surety fund. Before issuing a license to an 05 applicant under this chapter, the commission [BOARD] shall ensure [DETERMINE] 06 that the applicant has complied with the provisions of AS 08.88.455 and is covered by 07 the real estate surety fund established in AS 08.88.450. 08 * Sec. 25. AS 08.88.291 is amended to read: 09 Sec. 08.88.291. Location. A person licensed as a real estate services broker 10 shall, by registering with the commission, inform the commission of the person's 11 [BROKER'S] principal office and of any branch offices of the person's real estate 12 business and include in the information the names of the real estate services 13 licensees who are employed at each office. A [BROKER HAS. THE BROKER 14 AND THE ASSOCIATE] real estate services licensee [BROKERS AND REAL 15 ESTATE SALESMEN THE BROKER EMPLOYS] may do real estate business only 16 through a [IN OR OUT OF THE BROKER'S] principal office or from a [AND THE 17 BROKER'S] branch office registered by the broker by whom the licensee is 18 employed [OFFICES]. Failure of a real estate services broker to maintain a place of 19 business or to inform the commission of its location and the names and addresses of 20 all real estate services licensees employed at each location by the broker [UNDER 21 THE BROKER'S JURISDICTION AT THE LOCATION] are grounds for the 22 suspension or revocation of the broker's license. 23 * Sec. 26. AS 08.88.301 is amended to read: 24 Sec. 08.88.301. Change of location. Before [IF] a real estate services broker 25 changes the location of the broker's principal office or of a branch office, the broker 26 shall [IMMEDIATELY] notify the commission of the new address and any other 27 office changes on a form provided by the commission and pay the applicable fees. 28 * Sec. 27. AS 08.88.311 is amended to read: 29 Sec. 08.88.311. Branch offices. (a) A branch office shall be under the direct 30 supervision of a broker or an associate real estate services associate broker whose 31 principal place of business is that office and who is licensed under this chapter. An
01 associate [REAL ESTATE] broker may serve in the capacity of direct supervisor at 02 only one office [ONLY]. Real estate services licensees registered to a branch office 03 may practice only the specialties for which both they and the office's supervising 04 associate broker are endorsed. 05 (b) A [ALL] branch office [OFFICES] shall bear and be advertised only in the 06 name of the principal office but may also indicate that it is a [THEY ARE] branch 07 [OFFICES OF THE PRINCIPAL] office. 08 * Sec. 28. AS 08.88.321 is amended to read: 09 Sec. 08.88.321. Possession and display of license certificates. Employed 10 real [REAL] estate services licensees [SALESMEN OR ASSOCIATE REAL ESTATE 11 BROKERS] shall turn their license certificates over to the real estate services broker 12 who employs them. The employing [REAL ESTATE] broker shall display the 13 [EMPLOYING REAL ESTATE] broker's own license certificate [IN THE 14 EMPLOYING REAL ESTATE BROKER'S PRINCIPAL OFFICE] and the license 15 certificates of employed licensees [EMPLOYEES] in the office indicated as the office 16 of the licensees' employment in the registration required under AS 08.88.291 17 [WHERE THEY DO MOST OF THEIR WORK]. 18 * Sec. 29. AS 08.88.331 is amended to read: 19 Sec. 08.88.331. Making of transactions. An employed [A] real estate 20 services licensee [SALESMAN OR ASSOCIATE REAL ESTATE BROKER] may 21 perform activities for which a real estate license is required [MAKE A REAL 22 ESTATE TRANSACTION] only through the real estate services broker who employs 23 the licensee [REAL ESTATE SALESMAN OR ASSOCIATE REAL ESTATE 24 BROKER]. All money or other proceeds collected in trust and related to a real 25 estate transaction [ON BEHALF OF THE BROKER] shall immediately be turned 26 over to the broker or the broker's authorized agent. [ALL TRANSACTIONS IN 27 REAL ESTATE BY A REAL ESTATE SALESMAN OR ASSOCIATE REAL 28 ESTATE BROKER SHALL BE PROCESSED THROUGH THE REAL ESTATE 29 SALESMAN'S OR THE ASSOCIATE REAL ESTATE BROKER'S EMPLOYING 30 REAL ESTATE BROKER'S OFFICE, WHETHER THE TRANSACTIONS ARE FOR 31 THE REAL ESTATE SALESMAN'S OR ASSOCIATE REAL ESTATE BROKER'S
01 OWN USE OR THE USE OF A CLIENT.] 02 * Sec. 30. AS 08.88.341 is amended to read: 03 Sec. 08.88.341. Transaction service contract [LISTINGS]. A [ALL] real 04 estate personal service contract [LISTINGS] must be in writing and must be signed 05 by the broker [SELLER] or by an authorized agent of the broker as well as by the 06 client or an authorized agent of the client for whose benefit the real estate services 07 licensees will act. An [SELLER. ALL] exclusive real estate personal service 08 contract [LISTINGS] must have a definite expiration date that may be renewed or 09 extended only by a written agreement signed by the client or the client's 10 authorized agent. 11 * Sec. 31. AS 08.88.351 is amended to read: 12 Sec. 08.88.351. Record of transaction. A real estate services broker shall 13 (1) [KEEP A COMPLETE RECORD OF ALL REAL ESTATE 14 TRANSACTIONS MADE BY THE BROKER OR EMPLOYEES OF THE BROKER] 15 for at least three years, keep a complete record of all real estate transactions in 16 which the broker or employed licensees of the broker engaged; 17 (2) prepare an [MAKE A CLOSING STATEMENT SHOWING 18 DISBURSEMENTS AND] accounting for all money or other property collected or 19 held in the course of each transaction; 20 (3) keep a separate trust account in a bank, into which the broker shall 21 deposit all earnest money deposits, [AND] purchase money, security deposits, 22 contingency funds, community association fees, or other money collected in trust 23 until it is appropriate [PROPER] for the broker to distribute the money to the proper 24 persons; 25 (4) make available to the commission, on request, trust account 26 records and all other documents [RELATING TO TRANSACTIONS UNDER (3) OF 27 THIS SECTION] that the commission may require in order to conduct an 28 investigation or to [A COMPLETE] audit a [OF] trust account [ACCOUNTS]. 29 * Sec. 32. AS 08.88.351 is amended by adding new subsections to read: 30 (b) A real estate services licensee 31 (1) shall keep, for a minimum of three years, a complete record of all
01 real estate transactions in which the licensee was a principal; 02 (2) who maintains records concerning management or sale of the 03 licensee's own properties or the licensee's client properties separate from the broker's 04 file, shall retain those records for a minimum of three years; 05 (3) shall make available to the commission, on request, records and 06 other documents that the commission may require to conduct an investigation. 07 (c) For the purposes of this section, the three-year requirement for records 08 maintenance begins at the initiation of a transaction and continues, as applicable, until 09 three years after the date 10 (1) a listing agreement ends; 11 (2) a sales transaction closes or otherwise ends; 12 (3) a management contract ends; or 13 (4) another contractual or fiduciary obligation ends. 14 * Sec. 33. AS 08.88.391 is amended to read: 15 Sec. 08.88.391. Conflict of interest. A [LICENSED] real estate services 16 licensee [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 17 SALESMAN] who has a personal financial interest or other conflict of interest 18 relating to [IN] a real estate transaction shall, at the time of initial substantive 19 contact with the principals or agents of the principals, disclose that interest in 20 writing to the principals and agents of the principals [EVERY PERSON] involved 21 in the transaction. In this section, "other conflict of interest" includes a conflict 22 created by family, business, or other relationship and a conflict identified in 23 regulations adopted by the commission as being covered by this section. 24 * Sec. 34. AS 08.88 is amended by adding a new section to read: 25 Sec. 08.88.394. Disclosure of agency information to prospective clients. 26 Before seeking a signature on a contract, a real estate services licensee shall provide 27 to a prospective client or customer a form established by the commission to inform the 28 client or customer about the nature of agency relationships. Licensees shall also 29 disclose to the prospective client or customer the agency relationship that would be 30 established by the proposed contract, the nature of any preexisting agency relationships 31 affecting the proposed contract, and the nature of other relevant potential agency
01 relationships. This disclosure and receipt of the form must be acknowledged in writing 02 by the prospective client or customer before a contract is signed. 03 * Sec. 35. AS 08.88.396 is amended to read: 04 Sec. 08.88.396. Disclosure of agency to prospective buyers and sellers. (a) 05 A person licensed [HOLDING A LICENSE] under this chapter shall, when acting as 06 an agent for a prospective seller of real estate, 07 (1) disclose in writing the licensee's [PERSON'S] agency relationship 08 with the seller to each prospective buyer at the time that the licensee [PERSON] 09 begins to provide specific assistance to locate or acquire real estate for the buyer, and 10 obtain from each prospective buyer a signed acknowledgement that the buyer is aware 11 of the agency relationship between the licensee [PERSON LICENSED UNDER THIS 12 CHAPTER] and the seller; and 13 (2) include in the purchase agreement a statement of the agency 14 relationship between the licensee [PERSON LICENSED UNDER THIS CHAPTER] 15 and the seller. 16 (b) A person licensed [HOLDING A LICENSE] under this chapter shall, when 17 acting as an agent for a prospective buyer of real estate, 18 (1) disclose the licensee's [PERSON'S] relationship with the buyer to 19 a prospective seller of real estate, or to the seller's agent, at the time of the initial 20 contact between the licensee [PERSON LICENSED UNDER THIS CHAPTER] and 21 the prospective seller or the seller's agent, and confirm the relationship in writing as 22 soon as possible after the initial contact; 23 (2) include in the purchase agreement a statement of the agency 24 relationship between the licensee [PERSON LICENSED UNDER THIS CHAPTER] 25 and the buyer; 26 (3) if the prospective seller has an unexpired exclusive listing contract 27 for a property, present all offers [AN OFFER] to purchase that property to the seller's 28 agent; and 29 (4) disclose in writing to all parties to a transaction when the licensee's 30 [PERSON'S] compensation as agent for the buyer is to be paid by anyone other than 31 the buyer being represented by the licensee [PERSON].
01 (c) A person licensed under this chapter may [NOT] act as an agent for both 02 a prospective seller and a prospective buyer of real estate only after [UNLESS] the 03 licensee [PERSON] informs both the seller and the buyer of the dual agency and 04 obtains written consent to the dual [JOINT] agency from both principals. 05 (d) When a change occurs during a transaction that makes a prior written 06 disclosure required by this section incomplete, misleading, or inaccurate, the licensee 07 [PERSON LICENSED UNDER THIS CHAPTER] shall make a revised disclosure, in 08 writing, to all parties to the transaction as soon as possible. The revised disclosure 09 must include the date of the revision and shall be acknowledged in writing by all the 10 parties. 11 * Sec. 36. AS 08.88.401 is amended to read: 12 Sec. 08.88.401. Prohibited conduct. (a) A person licensed under this chapter 13 may not falsely represent to 14 (1) have been awarded a degree or other designation; 15 (2) [OR TO] be a member or an affiliate of a professional organization; 16 (3) be a member of a franchise or other business association; or 17 (4) be certified or endorsed as a specialist. 18 (b) A person licensed under this chapter 19 (1) [WHO IS NOT A REAL ESTATE BROKER LICENSED IN THIS 20 STATE] may not pay [ACCEPT] a fee or a commission for performance of an act for 21 which a license is required by this chapter to a person unless the person is licensed 22 and holds the appropriate endorsement under this chapter, except that a real estate 23 services broker may pay to a person [VALIDLY] licensed in another state [MAY 24 ACCEPT] a fee or commission [OR A PORTION OF A FEE OR COMMISSION] for 25 assisting [A REAL ESTATE BROKER LICENSED IN THIS STATE] in the 26 performance of an act for which a license is required by this chapter; 27 (2) who is licensed as an associate broker or a practitioner [A 28 REAL ESTATE SALESMAN LICENSED IN THIS STATE] may [NOT] accept a fee 29 or commission for performance of an act for which a license is required by this chapter 30 only from [UNLESS ACCEPTANCE IS AUTHORIZED BY] the licensee's 31 employing broker [WHO EMPLOYS THE SALESMAN].
01 (c) A person licensed under this chapter may not knowingly make, authorize, 02 direct, or aid in the publication of a false statement or misrepresentation concerning 03 land or a subdivision or other real estate offered for sale, [OR] lease, or rent or 04 concerning an association being managed. 05 (d) A person who violates [A PROVISION OF] this section, AS 08.88.161, 06 or 08.88.396 [AS 08.88.396] is guilty of a class A misdemeanor. 07 * Sec. 37. AS 08.88.401 is amended by adding a new subsection to read: 08 (e) A person may not 09 (1) use or attempt to use a license or endorsement issued under this 10 chapter that was issued to another person; 11 (2) give false or forged evidence to the commission or to a 12 representative of the commission in an attempt to obtain a license or endorsement; 13 (3) impersonate an applicant under this chapter; 14 (4) knowingly use or attempt to use an expired, suspended, revoked, 15 or nonexistent license or endorsement; or 16 (5) falsely claim to be licensed and authorized to practice under this 17 chapter. 18 * Sec. 38. AS 08.88.450 is amended to read: 19 Sec. 08.88.450. Real estate surety fund. The real estate surety fund is 20 established in the general fund to carry out the purposes of AS 08.88.450 - 08.88.500. 21 The fund is composed of payments made by licensed real estate licensees [BROKERS 22 AND SALESMEN] under AS 08.88.455, [AND] filing fees retained under [IN 23 ACCORDANCE WITH] AS 08.88.460, and fees collected under AS 08.88.091(a). 24 The fund may not exceed $500,000 and amounts in the fund in excess of $250,000 25 may be appropriated for real estate educational purposes as provided in AS 08.88.091. 26 * Sec. 39. AS 08.88.455 is amended to read: 27 Sec. 08.88.455. Payments by real estate licensees [BROKERS AND 28 SALESMEN]. (a) A [LICENSED] real estate services licensee, [BROKER, 29 ASSOCIATE BROKER, OR SALESMAN] when applying for [OBTAINING] or 30 renewing a real estate license, in lieu of obtaining a corporate surety bond, shall pay 31 to the commission in addition to the license fee, a surety fund fee not to exceed $125.
01 After the fund reaches $250,000, the commission shall by regulation adjust the surety 02 fund fees so that, taking into account anticipated expenditures for claims against the 03 fund and real estate educational purposes, the fund is maintained at a level not less 04 than $250,000. 05 (b) All fees collected under this section shall be paid at least once a month by 06 the department [COMMISSION] into the general fund. These payments shall be 07 credited to the real estate surety fund. 08 * Sec. 40. AS 08.88.460 is amended to read: 09 Sec. 08.88.460. Claim for payment. (a) A person seeking reimbursement for 10 a loss suffered in a real estate transaction as a result of fraud, misrepresentation, 11 deceit, or the conversion of trust funds on the part of a real estate services licensee 12 [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 13 SALESMAN LICENSED UNDER THIS CHAPTER] shall make a claim to the 14 commission for reimbursement on a form furnished by the commission. In order to 15 be eligible for reimbursement by the commission, the claim form must be filed 16 within two years after the occurrence of the fraud, misrepresentation, deceit, or 17 conversion of trust funds claimed as the basis for the reimbursement. The form 18 shall be executed under penalty of unsworn falsification [,] and must include the 19 following: 20 (1) the name and address of each [THE] real estate services licensee 21 involved [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 22 SALESMAN]; 23 (2) the amount of the alleged loss; 24 (3) the date or period of time during which the alleged loss occurred; 25 (4) the date upon which the alleged loss was discovered; 26 (5) the name and address of the claimant; and 27 (6) a general statement of facts relative to the claim. 28 (b) A copy of a claim filed with the commission under (a) of this section shall 29 be sent to each [THE] real estate services licensee [BROKER, ASSOCIATE REAL 30 ESTATE BROKER, OR REAL ESTATE SALESMAN] alleged to have committed the 31 misconduct resulting in losses, to the principal [AS WELL AS A] real estate services
01 broker or associate broker employing a licensee [AN ASSOCIATE REAL ESTATE 02 BROKER OR REAL ESTATE SALESMAN] alleged to have committed the conduct 03 resulting in losses, and to any other real estate licensee involved in the transaction 04 at least 20 days before any hearing held on the claim by the commission. 05 (c) Within seven days after receipt of notice of a claim under (b) of this 06 section, each [THE] real estate services licensee [BROKER, ASSOCIATE REAL 07 ESTATE BROKER, OR REAL ESTATE SALESMAN] against whom the claim is 08 made may elect to defend the claim as a small claims action in district court under 09 District Court Civil Rules 8 - 22 [,] if the claim does not exceed the small claims 10 jurisdictional limit. An election to defend a claim in district court under the small 11 claims rules may not be revoked by the real estate services licensee [BROKER, 12 ASSOCIATE BROKER, OR SALESMAN] without the consent of the claimant. Upon 13 receipt of a valid written election under this subsection, the commission shall dismiss 14 the claim filed with the commission and notify the claimant that the claim must be 15 brought as a small claims action in the appropriate state court. 16 (d) A claimant under this section shall pay a filing fee of $250 to the 17 commission at the time the claim is filed. The filing fee shall be refunded [ONLY] 18 if 19 (1) the commission makes an award to the claimant from the real estate 20 surety fund; 21 (2) the claim is dismissed under (c) of this section; or 22 (3) the claim is withdrawn by the claimant before the commission holds 23 a hearing on the claim. 24 * Sec. 41. AS 08.88.465(b) is amended to read: 25 (b) A certified or authenticated copy of a record, including a transcript of 26 testimony, of a hearing held under AS 08.88.071(a)(3) in which fraud, 27 misrepresentation, deceit, or conversion of trust funds on the part of a [LICENSED 28 BROKER, ASSOCIATE BROKER, OR] real estate services licensee [SALESMAN] 29 is established [,] may constitute sufficient evidence to support a finding that a claim 30 should be paid. 31 * Sec. 42. AS 08.88.465(c) is amended to read:
01 (c) Before the commission finds that payment should be made from the real 02 estate surety fund, each [THE] real estate services licensee against whom the claim 03 is made [BROKER, ASSOCIATE BROKER, OR REAL ESTATE SALESMAN] shall 04 be afforded an opportunity to file with the commission, within 10 days after receipt 05 of notification of the claim under AS 08.88.460(b), either a written statement in 06 opposition to the claim or an application for the presentation of additional evidence. 07 * Sec. 43. AS 08.88.465(d) is amended to read: 08 (d) The claimant bears the burden of proof of establishing that the claimant 09 suffered losses in a real estate transaction as a result of fraud, misrepresentation, 10 deceit, or the conversion of trust funds on the part of a real estate services licensee 11 [BROKER, ASSOCIATE REAL ESTATE BROKER, OR REAL ESTATE 12 SALESMAN] and the extent of those losses. All facts shall be established by a 13 preponderance of the evidence. 14 * Sec. 44. AS 08.88.470 is amended to read: 15 Sec. 08.88.470. Findings and payment. At the conclusion of the 16 commission's consideration of a claim made under AS 08.88.460, it shall make written 17 findings and conclusions on the evidence. If the commission finds that the claimant 18 has suffered a loss in a real estate transaction as a result of fraud, misrepresentation, 19 deceit, or the conversion of trust funds on the part of a real estate services licensee 20 [BROKER, ASSOCIATE BROKER, OR SALESMAN], the commission may award 21 a claimant reimbursement from [OUT OF] the real estate surety fund for the 22 claimant's loss up to $10,000. Not [HOWEVER, NOT] more than $10,000 may be 23 paid for each transaction regardless of the number of persons injured or the number 24 of parcels of real estate involved in the transaction. 25 * Sec. 45. AS 08.88.472(a) is amended to read: 26 (a) When an award is made from the real estate surety fund under 27 AS 08.88.470, the commission may charge to the fund the costs of a hearing held 28 under AS 08.88.071 or 08.88.465. Amounts subsequently recovered by the 29 commission for these costs from a real estate services [THE] licensee under 30 AS 08.88.071(b) or from other parties under AS 08.88.490 shall be deposited to the 31 real estate surety fund.
01 * Sec. 46. AS 08.88.474 is amended to read: 02 Sec. 08.88.474. Payment of small claims judgment. If a claim originally 03 filed with the commission is dismissed and is heard as a small claims action under 04 AS 08.88.460(c) and the claimant prevails in the small claims action against a [THE] 05 real estate services licensee [BROKER, ASSOCIATE REAL ESTATE BROKER, OR 06 SALESMAN], the commission shall make an award from the fund of any outstanding 07 portion of the small claims judgment on receipt of a copy of the final judgment and 08 an affidavit from the claimant stating that more than 30 days have elapsed since the 09 judgment became final and that the judgment has not yet been satisfied by the 10 licensee determined responsible [BROKER, ASSOCIATE BROKER, OR 11 SALESMAN HAS NOT SATISFIED THE JUDGMENT DURING THAT TIME]. 12 After payment of a small claims judgment, the commission is subrogated to the 13 claimant's rights in the judgment under AS 08.88.490. 14 * Sec. 47. AS 08.88.475 is amended to read: 15 Sec. 08.88.475. Maximum liability. (a) The maximum liability of the real 16 estate surety fund may not exceed $50,000 for any one real estate services licensee 17 [BROKER OR SALESMAN]. 18 (b) If the $50,000 liability of the fund as provided in (a) of this section is 19 insufficient to pay in full the valid claims of all persons who have filed claims against 20 an individual licensee [ONE BROKER OR SALESMAN], the $50,000 shall be 21 distributed among the claimants in the ratio that their individual claims bear to the 22 aggregate of valid claims, or in another manner that the commission considers 23 equitable. Distribution shall be among the persons entitled to share in the recovery [,] 24 without regard to the order [OF PRIORITY] in which their claims were filed. 25 * Sec. 48. AS 08.88.490 is amended to read: 26 Sec. 08.88.490. Right to subrogation. When the commission has paid to a 27 claimant from the real estate surety fund the sum awarded by the commission, the 28 commission shall be subrogated to all of the rights of the claimant to the amount paid, 29 and the claimant shall assign all right, title, and interest in that portion of the claim to 30 the commission. Money collected [AMOUNTS SUBSEQUENTLY REALIZED] by 31 the commission on the claim shall be deposited to the real estate surety fund.
01 * Sec. 49. AS 08.88.900 is amended to read: 02 Sec. 08.88.900. Exceptions. The provisions of this [THIS] chapter that 03 require licensure do [DOES] not apply to 04 (1) a person licensed in another profession while performing the 05 duties authorized under the license [WHO IS NOT LICENSED UNDER THIS 06 CHAPTER WHO MAKES A REAL ESTATE TRANSACTION WITH RESPECT TO 07 REAL ESTATE THE PERSON OWNS OR ON THE PERSON'S OWN BEHALF, 08 UNLESS THE TRANSACTION INVOLVES LAND DEFINED IN AS 34.55.044(7) 09 THAT IS NOT IN ALASKA]; 10 (2) a bookkeeper performing bookkeeping functions [AN 11 ATTORNEY IN FACT UNDER A POWER OF ATTORNEY AUTHORIZING THE 12 CONSUMMATION OF A SPECIFIC REAL ESTATE TRANSACTION; AN 13 ATTORNEY IN FACT MAY NOT ACT AS SUCH FOR MORE THAN TWO 14 TRANSACTIONS IN A CALENDAR YEAR]; 15 (3) tradesmen or vendors of services performing maintenance and 16 repair functions [A LAWYER PERFORMING DUTIES AS A LAWYER]; 17 (4) a public official in the conduct of official duties; 18 (5) a person acting as receiver, trustee, administrator, executor, or 19 guardian; 20 (6) a person acting under court order; 21 (7) a person acting under the authority of a will or trust instrument; 22 (8) an employee of a real estate firm or of a property owner who 23 delivers or accepts a real estate contract or application, or a related amendment, 24 to or from another person [A PERSON DEALING IN MINERAL RIGHTS 25 TRANSACTIONS]; 26 (9) an individual assisting in the performance of real estate 27 activities only by carrying out administrative, clerical, or maintenance tasks [A 28 DOMESTIC OR FOREIGN CORPORATION, A GENERAL OR LIMITED 29 PARTNERSHIP, OR A PARTNER OR REGULAR EMPLOYEE OF A DOMESTIC 30 OR FOREIGN CORPORATION OR A GENERAL OR LIMITED PARTNERSHIP, 31 WHEN PERFORMING AN ACT DESCRIBED IN AS 08.88.161 IN THE REGULAR
01 COURSE, OR AS AN INCIDENT TO, THE MANAGEMENT, SALE, OR OTHER 02 DISPOSITION OF REAL ESTATE OWNED BY THE CORPORATION OR 03 PARTNERSHIP; THE EXEMPTION PROVIDED IN THIS PARAGRAPH DOES 04 NOT APPLY TO A PERSON WHO PERFORMS AN ACT DESCRIBED IN 05 AS 08.88.161, UNLESS ALLOWED FOR UNLICENSED PERSONS UNDER 06 AS 08.88.165, EITHER 07 (A) AS A VOCATION; OR 08 (B) FOR COMPENSATION IF THE AMOUNT OF THE 09 COMPENSATION IS DEPENDENT UPON OR DIRECTLY RELATED TO 10 THE VALUE OF THE REAL ESTATE WITH RESPECT TO WHICH THE 11 ACT IS PERFORMED; 12 (10) A RESIDENT MANAGER OF RENTED REAL ESTATE IF THE 13 RESIDENT MANAGER'S DUTIES ARE LIMITED TO THE NEGOTIATION OF 14 LEASES AND RENTAL AGREEMENTS AND THE COLLECTION OF RENT FOR 15 THE USE OF THE REAL ESTATE AND IF THE RESIDENT MANAGER IS 16 (A) EMPLOYED BY THE OWNER OF THE REAL ESTATE; 17 OR 18 (B) EMPLOYED BY, OR ENGAGED UNDER CONTRACT 19 WITH, A LICENSED REAL ESTATE BROKER]. 20 * Sec. 50. AS 08.88.900 is amended by adding new subsections to read: 21 (b) The requirements of this chapter for licensure with a sales endorsement do 22 not apply to 23 (1) a person who is not licensed under this chapter who makes a real 24 estate transaction with respect to real estate the person owns or on the person's own 25 behalf unless the transaction involves subdivided land, as defined in AS 34.55.044, that 26 is not in the state; 27 (2) an attorney in fact under a power of attorney authorizing the 28 consummation of a specific real estate transaction; however, an attorney in fact may 29 not act as such for more than two sales transactions in a calendar year; 30 (3) a person dealing in mineral rights transactions; 31 (4) a domestic or foreign corporation, a general or limited partnership,
01 or a partner or regular employee of a domestic or foreign corporation or a general or 02 limited partnership, when performing an act described in AS 08.88.161 incidental to 03 the regular course of business or as an incident to the sale or other disposition of real 04 estate owned by the corporation or partnership; the exemption under this paragraph 05 does not apply to a person who performs an act described in AS 08.88.161 either 06 (A) as a vocation; or 07 (B) for compensation if the amount of the compensation is 08 dependent upon or related to the value of the real estate with respect to which 09 the act is performed. 10 (c) The requirements of this chapter for licensure with a property management 11 endorsement do not apply to 12 (1) a person who is not licensed under this chapter who manages real 13 estate the persons owns or who rents or leases property on the person's own behalf; 14 (2) an attorney in fact under a power of attorney authorizing the 15 consummation of a specific real estate lease or rental transaction; however, an attorney 16 in fact may not act as such for more than two property management transactions in a 17 calendar year; 18 (3) a person who manages four or fewer residential units for another; 19 or 20 (4) a resident manager. 21 (d) The requirements of this chapter for licensure with a community 22 association management endorsement do not apply to 23 (1) an owner of a unit of a self-managed community association 24 managing the community association without remuneration; or 25 (2) a developer of a community association during the period that the 26 developer retains control of the association; however, to be eligible for this exemption, 27 the developer must employ or contract with a real estate services licensee who has a 28 community association management endorsement. 29 * Sec. 51. AS 08.88.990 is amended to read: 30 Sec. 08.88.990. Definitions. In this chapter, 31 (1) "commission" means the Real Estate Commission except where the
01 context indicates that "commission" refers to a fee paid for personal services; 02 (2) "lease" means a written or oral contract between a lessor and 03 a lessee that transfers the right to exclusive possession and use of the lessor's real 04 property to the lessee for a specified period of time and for a stated consideration; 05 the term includes a lease that is a part of another transaction; 06 (3) "real estate" means an interest or estate in land, corporeal or 07 incorporeal, except that it does not include a unit in a hotel, motel, boarding house, 08 rooming house, or other transient lodging facility, or a unit in a warehouse, mini- 09 storage facility, or other facility the function of which is limited to warehousing purposes; 10 (4) "resident manager" means a person who resides on rented or leased 11 real property or on contiguous property owned by the same owner, [AND] manages 12 the property [IT] for the benefit of another person, and is either employed by the 13 owner of the real estate or employed by, or under contract with, a real estate 14 services licensee with a property management endorsement. 15 * Sec. 52. AS 08.88.990 is amended by adding new paragraphs to read: 16 (5) "broker" is a real estate services licensee who is fully qualified and 17 authorized to own or manage a real estate business; the term includes a person who 18 holds more than one endorsement simultaneously; unless otherwise required in context, 19 this term also includes a real estate services associate broker in charge of a branch 20 office; 21 (6) "community association management" means an activity undertaken 22 for others with regard to a property organized under AS 34.08 under an agreement in 23 exchange for a fee, commission, or other valuable consideration, including the 24 following activities: preparing budgets and other financial documents, collecting, 25 controlling, or disbursing funds, obtaining insurance for the association, contracting for 26 maintenance and repair to association property, and supervising the day-to-day 27 operations of an association under the direction of the association's board of directors; 28 (7) "employed real estate services licensee" is a real estate services 29 associate broker or practitioner who is required by this chapter to be employed and 30 supervised by a broker; 31 (8) "property management" is an activity undertaken for another with
01 regard to real property under an agreement in exchange for a fee, commission, or other 02 valuable consideration, including the following activities: marketing, leasing, 03 contracting for physical, administrative, or financial maintenance, performance of 04 overall management of real property, and the supervision of these actions; 05 (9) "real estate services licensee" is a person who holds a license under 06 this chapter and one or more of the specialty endorsements identified in AS 08.88.171; 07 the term includes a broker unless the context clearly excludes brokers; 08 (10) "real estate transaction" 09 (A) in sales, means the transfer or attempted transfer of an 10 interest in a unit of real property, an act conducted as a result of or in pursuit 11 of a contract to transfer an interest in a unit of real property, or an act 12 conducted in an attempt to obtain a contract to market real property; 13 (B) in property management, means the lease or rental of a unit 14 of real property including collection of rent from a tenant of a unit of rented 15 or leased real property, an attempt to rent or lease a unit of real property, an 16 attempt to collect rent from a tenant of rented or leased real property, or an act 17 conducted as a result of or in pursuit of a contract to manage a unit of leased 18 or rented real property; 19 (C) in community association management, means the collection 20 or attempted collection of dues from a unit owner or an activity conducted as 21 a result of or in pursuit of a contract with a community association to manage 22 the affairs of a community association. 23 * Sec. 53. AS 18.80.300(1) is amended to read: 24 (1) "blockbusting" means an unlawful discriminatory practice by real 25 estate services licensees [BROKERS, REAL ESTATE SALESMEN,] or employees or 26 agents of a real estate services broker or another individual, corporation, partnership, 27 or organization for the purpose of inducing a real estate transaction from which any 28 such person or its stockholders or members may benefit financially, to represent 29 directly or indirectly that a change has occurred or will or may occur from a 30 composition with respect to race, religion, color, or national origin of the owners or 31 occupants of the block, neighborhood, or area in which the real property is located, and
01 to represent directly or indirectly that this change may or will result in undesirable 02 consequences in the block, neighborhood, or area in which the real property is located, 03 including but not limited to the lowering of property values, an increase in criminal 04 or antisocial behavior, or decline in the quality of the schools or other facilities; 05 * Sec. 54. AS 21.66.310(b) is amended to read: 06 (b) An insured named in a title insurance policy or any other person directly 07 or indirectly connected with the transaction involving the issuance of a title insurance 08 policy, including, but not limited to a mortgage lender, real estate services broker, 09 builder, or attorney, or an officer, employee, agent, representative, or solicitor of a 10 mortgage lender, real estate services broker, builder, attorney, or other person, may not 11 knowingly receive or accept, directly or indirectly, a rebate, reduction, or abatement 12 of a charge or premium or a special favor or advantage, or a monetary consideration 13 or inducement. 14 * Sec. 55. AS 23.20.526(a)(8) is amended to read: 15 (8) service performed by an insurance agent, insurance solicitor, a real 16 estate services licensee [BROKER, A REAL ESTATE SALESMAN], or a securities 17 salesman to the extent the person is compensated by commission, unless the service 18 is required to be covered under the Federal Unemployment Tax Act as amended; 19 * Sec. 56. AS 34.08.600 is amended to read: 20 Sec. 34.08.600. Escrow of deposits. A deposit made in connection with the 21 purchase or reservation of a unit from a person required to deliver a public offering 22 statement under AS 34.08.520(c) must be placed in escrow and held either in this state 23 or in the state where the unit is located in an account designated solely for that 24 purpose by a licensed title insurance company, an attorney, a licensed real estate 25 services broker, an independent bonded escrow company, or an institution whose 26 accounts are insured by a governmental agency or instrumentality until 27 (1) delivered to the declarant at closing; 28 (2) delivered to the declarant because of the purchaser's default under 29 a contract to purchase the unit; or 30 (3) refunded to the purchaser. 31 * Sec. 57. AS 45.63.080(4) is amended to read:
01 (4) by a real estate services licensee [BROKER, ASSOCIATE REAL 02 ESTATE BROKER, OR REAL ESTATE SALESMAN] licensed under AS 08.88 and 03 acting in a capacity covered by the license; 04 * Sec. 58. AS 08.88.091(c) and 08.88.111 are repealed. 05 * Sec. 59. TRANSITIONAL LICENSING. (a) Notwithstanding other provisions of this 06 Act, a natural person who holds an active, inactive, or lapsed real estate license that has not 07 expired by the date this bill section takes effect is eligible for licensure as follows, without 08 taking an examination and without completing the education requirements of AS 08.88.091(b), 09 if the person applies within 365 days after the effective date of this bill section and pays the 10 required fees: 11 (1) a person licensed as a real estate broker is eligible for a real estate services 12 broker license with an endorsement in sales or property management, or both; 13 (2) a person licensed as a real estate associate broker is eligible for a real 14 estate services associate broker license with an endorsement in sales or property management, 15 or both; 16 (3) a person licensed as a real estate salesman is eligible for a real estate 17 services practitioner license with an endorsement in sales or property management, or both. 18 (b) Notwithstanding other provisions of this Act, a natural person who meets the 19 requirements of this subsection when this bill section takes effect is eligible for licensure as 20 follows, without taking an examination and without completing the education requirements of 21 AS 08.88.091(b), if the person applies within 365 days after the effective date of this bill 22 section and pays the required fees: 23 (1) a person who demonstrates to the commission's satisfaction that the person 24 is currently engaged as a principal in the practice of community association management, as 25 defined in AS 08.88.990, as amended by this Act, is eligible for a real estate services broker 26 license with a community association management endorsement; 27 (2) a person who demonstrates to the commission's satisfaction that the person 28 is currently qualified to practice as a principal in the practice of community association 29 management, as defined in AS 08.88.990, as amended by this Act, and is currently engaged 30 in the practice of community association management under a supervising principal who is 31 engaged in the practice of community association management is eligible for a real estate
01 services associate broker license with a community association management endorsement; 02 (3) a person who demonstrates to the commission's satisfaction that the person 03 is currently engaged in the practice of community association management, as defined in 04 AS 08.88.990, as amended by this Act, under the supervision of a principal who is engaged 05 in community association management is eligible for a real estate services practitioner license 06 with a community association management endorsement. 07 * Sec. 60. OTHER TRANSITIONAL PROVISIONS. (a) Notwithstanding AS 08.88.041, 08 as amended by sec. 1 of this Act, the members of the Real Estate Commission who hold 09 office on the effective date of this bill section may retain their offices until their terms expire 10 without complying with the requirements of AS 08.88.041. 11 (b) Notwithstanding AS 08.88.041(a), as amended by sec. 1 of this Act, until three 12 years after the effective date of this bill section, a real estate services licensee may be 13 appointed to the commission without having held an endorsement for three years, and a person 14 appointed under this subsection may complete the term of office for which the person was 15 appointed. 16 * Sec. 61. AS 08.88.173(a), enacted by sec. 15 of this Act, takes effect 90 days after the 17 effective date of AS 08.88.173(b), enacted by sec. 15 of this Act.