Legislature(2003 - 2004)
04/27/2004 01:32 PM Senate L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSSSHB 29(L&C) - REAL PROPERTY TRANSACTIONS/LICENSEES
CHAIR CON BUNDE announced SCS SSCSHB 29(L&C) to be up for
consideration. He noted that Amendment 1 (that was held over
from a discussion on April 15) was up for consideration again.
23-LS0189\BA.4
Bannister
A M E N D M E N T 1
OFFERED IN THE SENATE
TO: CSSSHB 29(JUD) am
Page 5, line 11:
Delete all material.
Insert "to imply a duty to
(1) investigate
(A) a matter that the licensee has not
agreed to investigate; or
(B) a matter that is not known by the
seller, prospective buyer, lessor, prospective lessee,
or licensee; or
(2) disclose, unless otherwise provided by law,
events that have occurred on the real estate that might
affect whether a person wants to buy or lease the real
estate."
REPRESENTATIVE NORM ROKEBERG explained Amendment 1.
Amendment 1 amends the language on page 5, line 11,
clarifying the duties of a licensee as to whether they
have a duty to investigate. The amendment indicates
that there's no implied duty to investigate matters
that the licensee has not agreed to investigate or
matters not known by the licensee or the buyer,
etc.....
The subsection (2) provisions within the amendment
indicate that there's no duty to disclose, unless
otherwise provided by law, events such as [in the]
disclosure form, which every seller of real estate,
whether they are represented by a licensee or not, has
to make....
REPRESENTATIVE ROKEBERG said this concerns the psychological
impairment section and can include such things as illnesses like
AIDS or HIV, which is proscribed by federal law.
CHAIR BUNDE asked if a methamphetamine lab has to be disclosed.
REPRESENTATIVE ROKEBERG answered that it does have to be
disclosed.
CHAIR BUNDE said the duty to disclose as otherwise provided by
law applies to physical problems or limitations to the property.
He asked if Amendment 1 addresses psychological issues.
REPRESENTATIVE ROKEBERG replied yes. In the instance of a
haunted house, one would have the duty to disclose that if one
knows about it, but one wouldn't have a duty to investigate that
issue in order to disclose it.
MS. PEGGY ANN MCCONNOCHIE, Alaska Association of Realtors,
commented:
For the question of if there's a ghost in the house -
how do you investigate whether or not there is a ghost
or not?.... There were suspicions told to me that
there was a ghost in the house and I felt it was my
duty to disclose. Whether or not you believe in ghosts
is not material. If you don't know that, how do you go
out and investigate whether there is or is not a
ghost?
CHAIR BUNDE asked a more practical question - when there has
been a suicide in the house and you're aware of it, you
disclose, but you don't have a duty to research whether anyone
had taken his life in that home - unless it's common knowledge.
MS. MCCONNOCHIE agreed with that. The issue is how one would go
about an investigation like that. Right now Realtors don't know
what to do, but want to deal with it in this amendment.
SENATOR HOLLIS FRENCH asked where exactly in the disclosure
document a realtor tells a perspective buyer that there was a
double homicide in the house.
MS. MCCONNOCHIE said there is no specific question on the form
that asks that, because there is no statutory requirement for
it. If this bill passes, Realtors would use an amended form.
SENATOR FRENCH said he understands the amendment would foreclose
that disclosure.
REPRESENTATIVE ROKEBERG said this bill doesn't affect the nature
of the disclosure statement, which applies to all sellers of
real estate, whether they are represented by a licensee or not.
HB 29 only regulates the activities of licensees. He does not
want to create a legal duty to disclose a homicide, for
instance. The reason he is addressing the issue is because case
law in the State of Alaska hasn't addressed it yet and, "It's a
field day for lawyers."
SENATOR FRENCH agreed with Representative Rokeberg and Ms.
McConnochie that someone shouldn't have to hunt down the history
of a property, but if a double homicide was committed there last
week and someone just came to town and didn't know about, "If
everyone in town knows about it except for this poor buyer, I
think someone should tell the buyer." He was trying to figure
out where that is addressed.
REPRESENTATIVE ROKEBERG responded that it isn't written down.
Disclosure is an implied duty, but he didn't want to put that in
statute.
SENATOR FRENCH asked what happens if a person buys a place and
then finds out there was a double homicide in it and doesn't
want to live there anymore. "Can they go after the seller and
say, 'Hey, you should have told me?' I think this bill says no."
MS. MCCONNOCHIE responded that is a material fact about the
house that the seller has to disclose. The question becomes does
a double homicide three houses away need to be disclosed, also.
That's what we need direction on. How far away is no
longer reasonable.... Keep in mind that it is a
material fact in some cultures that they cannot buy a
home in which a murder has occurred. That's a material
fact of that culture, but not to everyone.
SENATOR FRENCH said he would support "near, but not on the real
estate".
MS. MCCONNOCHIE said the Real Estate Commission needs to be able
to write the regulations to support the statement. She said
Realtors in Anchorage and Juneau view disclosures differently.
SENATOR SEEKINS said, "What is not required should not be
implied. I think this is saying you can't imply some duty beyond
what we have statutorily or on a regulatory basis required for
disclosure...."
MS. MCCONNOCHIE chimed in, "Bingo!"
SENATOR FRENCH said the law has very narrow requirements.
REPRESENTATIVE ROKEBERG agreed with Senator Seekins' statement.
CHAIR BUNDE asked for a roll call vote on Amendment 1. Senators
Gary Stevens, Ralph Seekins and Chair Con Bunde voted yea;
Senator Hollis French voted nay; and Amendment 1 was adopted.
CHAIR BUNDE noted that people with further issues could discuss
the bill in its next committee of referral, Judiciary.
SENATOR SEEKINS moved SCS CSSSHB 29(L&C) from committee with
attached fiscal note. Senators Hollis French, Gary Stevens,
Ralph Seekins and Chair Con Bunde voted yea; and SCS CSSSHB
29(L&C) moved from committee.
| Document Name | Date/Time | Subjects |
|---|