AN
ACT Relating to grounds for disciplinary action against real estate brokers or
salespersons; and amending RCW 18.85.230.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
18.85.230 and 1997 c 322 s 17 are each amended to read as follows:
The
director may, upon his or her own motion, and shall upon verified complaint in
writing by any person, investigate the actions of any person engaged in the
business or acting in the capacity of a real estate broker, associate real
estate broker, or real estate salesperson, regardless of whether the
transaction was for his or her own account or in his or her capacity as broker,
associate real estate broker, or real estate salesperson, and may impose any
one or more of the following sanctions: Suspend or revoke, levy a fine not to
exceed one thousand dollars for each offense, require the completion of a
course in a selected area of real estate practice relevant to the section of this
chapter or rule violated, or deny the license of any holder or applicant who is
guilty of:
(1)
Obtaining a license by means of fraud, misrepresentation, concealment, or
through the mistake or inadvertence of the director;
(2)
Violating any of the provisions of this chapter or any lawful rules or
regulations made by the director pursuant thereto or violating a provision of
chapter 64.36, 19.105, or 58.19 RCW or RCW 18.86.030 or the rules adopted under
those chapters or section;
(3)
Being convicted in a court of competent jurisdiction of this or any other
state, or federal court, of forgery, embezzlement, obtaining money under false
pretenses, bribery, larceny, extortion, conspiracy to defraud, or any similar
offense or offenses: PROVIDED, That for the purposes of this section being
convicted shall include all instances in which a plea of guilty or nolo
contendere is the basis for the conviction, and all proceedings in which the
sentence has been deferred or suspended;
(4)
Making, printing, publishing, distributing, or causing, authorizing, or
knowingly permitting the making, printing, publication or distribution of false
statements, descriptions or promises of such character as to reasonably induce
any person to act thereon, if the statements, descriptions or promises purport
to be made or to be performed by either the licensee or his or her principal
and the licensee then knew or, by the exercise of reasonable care and inquiry,
could have known, of the falsity of the statements, descriptions or promises;
(5)
Knowingly committing, or being a party to, any material fraud,
misrepresentation, concealment, conspiracy, collusion, trick, scheme or device
whereby any other person lawfully relies upon the word, representation or
conduct of the licensee;
(6)
Accepting the services of, or continuing in a representative capacity, any
associate broker or salesperson who has not been granted a license, or after
his or her license has been revoked or during a suspension thereof;
(7)
Conversion of any money, contract, deed, note, mortgage, or abstract or other
evidence of title, to his or her own use or to the use of his or her principal
or of any other person, when delivered to him or her in trust or on condition,
in violation of the trust or before the happening of the condition; and failure
to return any money or contract, deed, note, mortgage, abstract or other
evidence of title within thirty days after the owner thereof is entitled
thereto, and makes demand therefor, shall be prima facie evidence of such
conversion;
(8)
Failing, upon demand, to disclose any information within his or her knowledge
to, or to produce any document, book or record in his or her possession for
inspection of the director or his or her authorized representatives acting by
authority of law;
(9)
Continuing to sell any real estate, or operating according to a plan of
selling, whereby the interests of the public are endangered, after the director
has, by order in writing, stated objections thereto;
(10)
Committing any act of fraudulent or dishonest dealing or a crime involving
moral turpitude, and a certified copy of the final holding of any court of
competent jurisdiction in such matter shall be conclusive evidence in any
hearing under this chapter. However, RCW 9.96A.020 does not apply to a person
who is required to register as a sex offender under RCW 9A.44.130;
(11)
Advertising in any manner without affixing the broker's name as licensed, and
in the case of a salesperson or associate broker, without affixing the name of
the broker as licensed for whom or under whom the salesperson or associate
broker operates, to the advertisement; except, that a real estate broker,
associate real estate broker, or real estate salesperson advertising their
personally owned real property must only disclose that they hold a real estate
license;
(12)
Accepting other than cash or its equivalent as earnest money unless that fact
is communicated to the owner prior to his or her acceptance of the offer to
purchase, and such fact is shown in the earnest money receipt;
(13)
Charging or accepting compensation from more than one party in any one
transaction without first making full disclosure in writing of all the facts to
all the parties interested in the transaction;
(14)
Accepting, taking or charging any undisclosed commission, rebate or direct
profit on expenditures made for the principal;
(15)
Accepting employment or compensation for appraisal of real property contingent
upon reporting a predetermined value;
(16)
Issuing an appraisal report on any real property in which the broker, associate
broker, or salesperson has an interest unless his or her interest is clearly
stated in the appraisal report;
(17)
Misrepresentation of his or her membership in any state or national real estate
association;
(18)
Discrimination against any person in hiring or in sales activity, on the basis
of any of the provisions of any state or federal antidiscrimination law;
(19)
Failing to keep an escrow or trustee account of funds deposited with him or her
relating to a real estate transaction, for a period of three years, showing to
whom paid, and such other pertinent information as the director may require,
such records to be available to the director, or his or her representatives, on
demand, or upon written notice given to the bank;
(20)
Failing to preserve for three years following its consummation records relating
to any real estate transaction;
(21)
Failing to furnish a copy of any listing, sale, lease or other contract
relevant to a real estate transaction to all signatories thereof at the time of
execution;
(22)
Acceptance by a branch manager, associate broker, or salesperson of a
commission or any valuable consideration for the performance of any acts
specified in this chapter, from any person, except the licensed real estate
broker with whom he or she is licensed;
(23)
To direct any transaction involving his or her principal, to any lending
institution for financing or to any escrow company, in expectation of receiving
a kickback or rebate therefrom, without first disclosing such expectation to
his or her principal;
(24)
Buying, selling, or leasing directly, or through a third party, any interest in
real property without disclosing in writing that he or she holds a real estate
license;
(25)
In the case of a broker licensee, failing to exercise adequate supervision over
the activities of his or her licensed associate brokers and salespersons within
the scope of this chapter;
(26)
Any conduct in a real estate transaction which demonstrates bad faith,
dishonesty, untrustworthiness or incompetency;
(27)
Acting as a vehicle dealer, as defined in RCW 46.70.011, without having a
license to do so;
(28)
Failing to assure that the title is transferred under chapter 46.12 RCW when
engaging in a transaction involving a mobile home as a broker, associate
broker, or salesperson; or
(29)
Violation of an order to cease and desist which is issued by the director under
this chapter.
