HOUSE BILL REPORT

SB 5487

BYSenators McCaslin, DeJarnatt and Thorsness

Requiring real estate licensees to disclose certain information in writing.

House Committe on Commerce and Labor

Majority Report:  Do pass as amended.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, R. King, Leonard, O'Brien, Prentice, Walker and Wolfe.

House Staff:Jim Kelley (786-7166)

AS PASSED HOUSE FEBRUARY 27, 1990

BACKGROUND:

Real estate brokers and salespersons are required to make certain disclosures or risk disciplinary action.  Disclosure is required when a licensee represents more than one party in a transaction, directs a transaction to a lending institution or escrow company in expectation of receiving a rebate, or acquires or intends to acquire for himself or herself an interest in real estate.  These disclosures are not required to be in writing.

Advertisements must contain the broker's name, regardless of whether the property is personally owned by the licensee.

SUMMARY:

Written disclosure is required when a real estate licensee represents more than one party in a transaction.  The requirement that a licensee disclose that he or she is licensed, when acquiring or intending to acquire property for himself or herself, is broadened to cover buying, selling, or leasing any property directly or through a third party.  This disclosure must also be in writing.

A real estate licensee advertising his or her personally owned property need only disclose that he or she holds a real estate license, and need not disclose the broker's name.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Robert Mitchell, Department of Licensing; Pam Barrett, Washington Association of Realtors; and Larry Shannon, Washington Mortgage Banking Association (with concerns).

House Committee - Testified Against:      No one.

House Committee - Testimony For:    These are necessary changes to the law.  Disclosure should be made to buyers and sellers in writing.  Under current law, a licensee selling his or her own property appears to have listed it with his or her broker.  A ban on refunds and kickbacks should not affect a licensee's ability to be compensated for helping the bank process the loan.  However, Congress probably will resolve this issue.

House Committee - Testimony Against:      None.