H-1517              _______________________________________________

                                                   HOUSE BILL NO. 1176

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representative Lux

Read first time 2/8/85 and referred to Committee on Commerce & Labor. Referred to Committee on Financial Institution & Insurance 2/15/85.

AN ACT Relating to real estate fund accounts; and amending RCW 18.85.310.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 19, chapter 222, Laws of 1951 as last amended by section 44, chapter 52, Laws of 1957 and  RCW 18.85.310 are each amended to read as follows:

          Every licensed real estate broker shall keep adequate records of all real estate transactions handled by or through him.  The records shall include, but are not limited to, a copy of the earnest money receipt, and an itemization of the broker's receipts and disbursements with each transaction.  These records and all other records hereinafter specified shall be open to inspection by the director or his authorized representatives.

          Every real estate broker shall also deliver or cause to be delivered to all parties signing the same, at the time of signing, conformed copies of all earnest money receipts, listing agreements and all other like or similar instruments signed by the parties, including the closing statement.

          Every real estate broker shall also keep separate real estate fund accounts in a recognized Washington state depositary authorized to receive funds in which shall be kept separate and apart and physically segregated from licensee broker's own funds in an interest bearing account or accounts, all funds or moneys of clients which are being held by such licensee broker pending the closing of a real estate sale or transaction, or which have been collected for said client and are being held for disbursement for or to said client and such funds shall be deposited not later than the first banking day following receipt thereof.  The interest which accrues on the funds shall be paid to the client or person who has deposited the funds.

          Any violation by a real estate broker of any of the provisions of this section, or RCW 18.85.230, shall be grounds for revocation of the licenses issued to the broker.