H-518                _______________________________________________

                                                    HOUSE BILL NO. 277

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Armstrong and Todd

Read first time 1/28/85 and referred to Committee on Commerce & Labor.

An ACT Relating to real estate brokers and salesmen; amending RCW 18.85.130; and adding a new section to chapter 18.85 RCW.

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

        Sec. 1.  Section 11, chapter 222, Laws of 1951 as amended by section 11, chapter 139, Laws of 1972 ex. sess. and RCW 18.85.130 are each amended to read as follows:

          The director shall provide each original applicant for a license with a manual containing a sample list of questions and answers pertaining to real estate law and the operation of the business and may provide the same at cost to any licensee or to other members of the public.  The director shall ascertain by written examination, that each applicant, and in case of a corporation, or copartnership, that each officer, agent, or member thereof whom it proposes to act as licensee, has:

          (1) Appropriate knowledge of the English language, including reading, writing, spelling, and arithmetic;

          (2) An understanding of the principles of real estate conveyancing, the general purposes and legal effect of deeds, mortgages, land contracts of sale, exchanges, rental and option agreements, and leases;

          (3) An understanding of the principles of land economics and appraisals;

          (4) An understanding of the obligations between principal and agent;

          (5) An understanding of alternative brokerage concepts, including representation of purchasers;

(6) An understanding of the principles of real estate practice and the canons of business ethics pertaining thereto; and((,

          (6))) (7) An understanding of the provisions of this chapter.

          The examination for real estate brokers shall be more exacting than that for real estate salesmen.

          All moneys received for the sale of the manual to licensees and members of the public shall be placed in the real estate commission fund to be returned to the current biennium operating budget.

NEW SECTION. Sec. 2.  A new section is added to chapter 18.85 RCW to read as follows:

          (1) Every licensed broker and licensed real estate salesman shall disclose whether the broker or salesman will be acting on behalf and subject to the control and consent of (a) the seller, (b) the purchaser, or (c) both the seller and purchaser, and that the broker or salesman will be subject to the control of and consent by the seller, purchaser, or both the seller and purchaser in any real estate or business opportunity transaction.

          (2) The disclosure required in subsection (1) of this section shall be confirmed in writing to both the seller and purchaser no later than the time when the broker or salesman presents to the seller the written offer to purchase or exchange the real estate or business opportunity.  The disclosure requirement may be satisfied by the title designation, "agent for the seller" or "agent for the purchaser."