HOUSE BILL REPORT

SSB 5486

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators McCaslin, DeJarnatt, Thorsness and Johnson)

Revising provisions for real estate brokers and salespersons.

House Committe on Commerce & Labor

Majority Report:  Do pass. (11)

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

House Staff:Joan Elgee (786-7166)

AS PASSED HOUSE APRIL 12, 1989

BACKGROUND:

Persons who conduct real estate transactions for others for a commission or other compensation must obtain a real estate broker or salesperson license from the Department of Licensing.  Attorneys in fact (those acting under a power of attorney), and attorneys at law acting in the performance of their duties are exempt.

Real estate brokers and salespersons must renew their licenses annually.

A real estate broker must maintain an office in the state.  Branch offices require a duplicate license and a branch manager who shall be an associate broker.  A branch office license is not required where real estate sales activity is limited to a subdivision or tract within 35 miles of a licensed office and the real estate sales activity occurs less than 5 days per week.

SUMMARY:

The exemption from real estate licensure for attorneys in fact is limited to those persons acting without compensation.

Real estate broker and salesperson licenses are renewable every two years rather than annually.

Real estate brokers are not required to obtain a branch office license when conducting real estate sales activity on a subdivision or tract within 35 miles of a licensed office regardless of the number of days per week of sales activity.

Fiscal Note:      Available.

Effective Date:Section 2 of the bill takes effect January 1, 1991.

House Committee ‑ Testified For:    Bob Mitchell, Department of Licensing and Tom McCabe, Washington Association of Realtors.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    1) Some persons are using powers of attorney to avoid the licensing requirement.  2) Biennial licensing is consistent with the requirement that licensees demonstrate completion of continuing education requirements every two years.  3) Some local zoning codes prohibit branch offices in a tract.

House Committee - Testimony Against:      None Presented.