BILL REQ. #:  S-0382.2 

Read first time 01/24/2003.   Referred to Committee on Financial Services, Insurance & Housing.

     AN ACT Relating to allowing out-of-state licensees to practice commercial real estate; amending RCW 18.85.010; and adding a new section to chapter 18.85 RCW.

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

Sec. 1   RCW 18.85.010 and 1998 c 46 s 2 are each amended to read as follows:
     In this chapter words and phrases have the following meanings unless otherwise apparent from the context:
     (1) "Real estate broker," or "broker," means a person, while acting for another for commissions or other compensation or the promise thereof, or a licensee under this chapter while acting in his or her own behalf, who:
     (a) Sells or offers for sale, lists or offers to list, buys or offers to buy real estate or business opportunities, or any interest therein, for others;
     (b) Negotiates or offers to negotiate, either directly or indirectly, the purchase, sale, exchange, lease, or rental of real estate or business opportunities, or any interest therein, for others;
     (c) Negotiates or offers to negotiate, either directly or indirectly, the purchase, sale, lease, or exchange of a manufactured or mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the manufactured or mobile home is, or will be, located;
     (d) Advertises or holds himself or herself out to the public by any oral or printed solicitation or representation that he or she is so engaged; or
     (e) Engages, directs, or assists in procuring prospects or in negotiating or closing any transaction which results or is calculated to result in any of these acts;
     (2) "Real estate salesperson" or "salesperson" means any natural person employed, either directly or indirectly, by a real estate broker, or any person who represents a real estate broker in the performance of any of the acts specified in subsection (1) of this section;
     (3) An "associate real estate broker" is a person who has qualified as a "real estate broker" who works with a broker and whose license states that he or she is associated with a broker;
     (4) The word "person" as used in this chapter shall be construed to mean and include a corporation, limited liability company, limited liability partnership, or partnership, except where otherwise restricted;
     (5) "Business opportunity" shall mean and include business, business opportunity and good will of an existing business or any one or combination thereof;
     (6) "Commission" means the real estate commission of the state of Washington;
     (7) "Director" means the director of licensing;
     (8) "Real estate multiple listing association" means any association of real estate brokers:
     (a) Whose members circulate listings of the members among themselves so that the properties described in the listings may be sold by any member for an agreed portion of the commission to be paid; and
     (b) Which require in a real estate listing agreement between the seller and the broker, that the members of the real estate multiple listing association shall have the same rights as if each had executed a separate agreement with the seller;
     (9) "Clock hours of instruction" means actual hours spent in classroom instruction in any tax supported, public technical college, community college, or any other institution of higher learning or a correspondence course from any of the aforementioned institutions certified by such institution as the equivalent of the required number of clock hours, and the real estate commission may certify courses of instruction other than in the aforementioned institutions; ((and))
     (10) "Incapacitated" means the physical or mental inability to perform the duties of broker prescribed by this chapter; and
     (11) "Commercial real estate" means any parcel of real estate in this state other than real estate containing one to four residential units. "Commercial real estate" does not include a single-family residential lot or single-family residential units such as condominiums, townhouses, manufactured homes, or homes in a subdivision when sold, leased, or otherwise conveyed on a unit-by-unit basis, even when those units are part of a larger building or parcel of real estate, unless the property is sold or leased for a commercial purpose.

NEW SECTION.  Sec. 2   A new section is added to chapter 18.85 RCW to read as follows:
     (1) An out-of-state broker, for a fee, commission, or other valuable consideration, or in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration, may perform those acts that require a license under this chapter, with respect to commercial real estate, provided that the out-of-state broker does all of the following:
     (a) Works in cooperation with a Washington real estate broker who holds a valid, active license issued under this chapter;
     (b) Enters into a written agreement with the Washington broker that includes the terms of cooperation, oversight by the Washington broker, compensation, and a statement that the out-of-state broker and its agents will agree to adhere to the laws of Washington;
     (c) Furnishes the Washington broker with a copy of the out-of-state broker's current license in good standing from any jurisdiction where the out-of-state broker maintains an active real estate license;
     (d) Consents to jurisdiction that legal actions arising out of the conduct of the out-of-state broker or its agents may be commenced against the out-of-state broker in the court of proper jurisdiction of any county in Washington where the cause of action arises or where the plaintiff resides;
     (e) Includes the name of the Washington broker on all advertising in accordance with RCW 18.85.230(8); and
     (f) Deposits all documentation required by this section and records and documents related to the transaction with the Washington broker, for a period of three years after the date the documentation is provided, or the transaction occurred, as appropriate.
     (2) An out-of-state salesperson or associate broker may perform those acts that require a real estate salesperson or associate broker license under this chapter with respect to commercial real estate, provided that the out-of-state salesperson or associate broker meets all of the following requirements:
     (a) Is licensed with and works under the direct supervision of the out-of-state broker;
     (b) The out-of-state broker with whom the salesperson or associate broker is associated meets all of the requirements under subsection (1) of this section; and
     (c) Provides the Washington broker who is working in cooperation with the out-of-state broker with whom the salesperson or associate broker is associated with a copy of the salesperson's or associate broker's current license in good standing from the jurisdiction where the out-of-state salesperson or associate broker maintains an active real estate license in connection with the out-of-state broker.
     (3) A person, partnership, association, limited liability company, limited liability partnership, or corporation licensed in a jurisdiction where there is no legal distinction between a real estate broker license and a real estate salesperson license must meet the requirements of subsection (1) of this section before engaging in any activity described in this section that requires a real estate broker license in this state.