April 21, 2010, Introduced by Rep. Polidori and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
by amending section 2512 (MCL 339.2512), as amended by 2008 PA 90
and by adding section 2516.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2512. A licensee who commits 1 or more of the following
is subject to the penalties set forth in article 6:
(a) Except in a case involving property management, acts for
more than 1 party in a transaction without the knowledge of the
(b) Fails to provide a written agency disclosure to a
prospective buyer or seller in a real estate transaction as defined
in section 2517.
(c) Represents or attempts to represent a real estate broker
other than the employer without the express knowledge and consent
of the employer.
(d) Fails to account for or to remit money coming into the
licensee's possession which belongs to others.
(e) Changes a business location without notification to the
(f) In the case of a real estate broker, fails to return a
real estate salesperson's license within 5 days as provided in
(g) In the case of a licensee engaged in property management,
violates section 2512c(2), (5), or (6).
(h) Except as provided in section 2512b, shares or pays a fee,
commission, or other valuable consideration to a person not
licensed under this article including payment to any person
providing the names of, or any other information regarding, a
potential seller or purchaser of real estate but excluding payment
for the purchase of commercially prepared lists of names. However,
a licensed real estate broker may pay a commission to a licensed
real estate broker of another state if the nonresident real estate
broker does not conduct in this state a negotiation for which a
commission is paid.
(i) Conducts or develops a market analysis not in compliance
with section 2601(a)(ii).
(j) Fails to provide the minimum services as specified in
section 2512d(3) when providing services pursuant to a service
provision agreement unless expressly waived in writing by the
(k) Fails to convey an offer to purchase to an owner and to
the financial institution, bank, or other entity holding the
mortgage that has commenced a foreclosure proceeding during the
time the proceeding is pending or within the redemption period in
the case of a completed foreclosure, in violation of section 2516.
(l) In the case of real estate subject to foreclosure, fails to
obtain, within 5 business days after receipt of the offer to
purchase, a letter of acceptance or rejection from the financial
institution, bank, or other entity holding the mortgage or fails to
immediately convey a letter of acceptance or rejection, in
violation of section 2516.
(k) Except in the case of property management accounts,
fails to deposit in the real estate broker's custodial trust or
escrow account money belonging to others coming into the hands of
the licensee in compliance with the following:
(i) A real estate broker shall retain a deposit or other money
made payable to a person, partnership, corporation, or association
holding a real estate broker's license under this article pending
consummation or termination of the transaction involved and shall
account for the full amount of the money at the time of the
consummation or termination of the transaction.
(ii) A real estate salesperson shall pay over to the real
estate broker, upon receipt, a deposit or other money on a
transaction in which the real estate salesperson is engaged on
behalf of the real estate broker.
(iii) A real estate broker shall not permit an advance payment
of funds belonging to others to be deposited in the real estate
broker's business or personal account or to be commingled with
funds on deposit belonging to the real estate broker.
(iv) A real estate broker shall deposit, within 2 banking days
after the broker has received notice that an offer to purchase is
accepted by all parties, money belonging to others made payable to
the real estate broker into a separate custodial trust or escrow
account maintained by the real estate broker with a bank, savings
and loan association, credit union, or recognized depository until
the transaction involved is consummated or terminated, at which
time the real estate broker shall account for the full amount
(v) A real estate broker shall keep records of funds deposited
in its custodial trust or escrow account, which records shall
indicate clearly the date and from whom the money was received, the
date deposited, the date of withdrawal, and other pertinent
information concerning the transaction, and shall show clearly for
whose account the money is deposited and to whom the money belongs.
The records shall be subject to inspection by the department. A
real estate broker's separate custodial trust or escrow account
shall designate the real estate broker as trustee, and the
custodial trust or escrow account shall provide for withdrawal of
funds without previous notice. This article and the rules
promulgated pursuant to this article do not prohibit the deposit of
money accepted under this section in a noninterest bearing account
of a state or federally chartered savings and loan association or a
state or federally chartered credit union.
(vi) If a purchase agreement signed by a seller and purchaser
provides that a deposit be held by an escrowee other than a real
estate broker, a licensee in possession of such a deposit shall
cause the deposit to be delivered to the named escrowee within 2
banking days after the licensee has received notice that an offer
to purchase is accepted by all parties.
Sec. 2516. A real estate salesperson shall do both of the
following, as applicable:
(a) Convey an offer to purchase to the owner of real estate
and, if an action for foreclosure has been commenced against the
real estate, to the financial institution, bank, or other entity
holding the mortgage. In the case of real estate subject to
foreclosure, the offer shall be conveyed to the financial
institution, bank, or other entity holding the mortgage during the
time of the foreclosure action, including the redemption period.
(b) In the case of real estate subject to foreclosure, the
real estate salesperson shall obtain, within 5 business days after
receipt of the offer to purchase, a letter of acceptance or
rejection from the financial institution, bank, or other entity
holding the mortgage. The letter of acceptance or rejection shall
be immediately conveyed to the offeror or the buyer's agent, as