CONSIDERATION FOR TENANT REFERRALS                                                     H.B. 4693:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

 

 

 

 

 

 

 

 

 

House Bill 4693 (as reported without amendment)

Sponsor:  Representative Steven Johnson

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform

 


CONTENT

 

The bill would amend Article 25 of the Occupational Code, which governs real estate brokers, real estate associate brokers, and real estate salespersons, to increase the amount of consideration that a landlord may offer and a tenant may accept for a referral of a prospective tenant that does not constitute participation in a real estate transaction or paying of real estate commissions.

 

Under the Code, the following actions do not constitute participation in a real estate transaction or in the payment of real estate commissions:

 

 --   As an owner or an authorized agent of the owner, offering an existing tenant of the owner's property a consideration of a value of one-half month's rent or less for referring a prospective tenant to the owner or the authorized agent of the owner for the purpose of entering into a lease agreement.

 --   As an existing tenant of rental property, accepting a consideration of one-half month's rent or less for the referral of prospective tenants.

 

The bill would increase, from one-half month's rent to one month's rent, the maximum value of consideration a landlord could offer, and a tenant could accept for referring a prospective tenant that would not constitute participation in a real estate transaction or paying of real estate commissions.

 

MCL 339.2512b                                                            Legislative Analyst:  Eleni Lionas

 

FISCAL IMPACT

 

The bill would have no fiscal impact on State or local government.

 

Date Completed:  2-10-22                                        Fiscal Analyst:  Elizabeth Raczkowski

 

 

 

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.