The bill amends section 2512 of the Occupational Code, which outlines the penalties for licensees who violate specific provisions related to real estate transactions. Key insertions include the clarification that a licensee must assist a buyer in developing or negotiating an offer only after entering into a written buyer agency agreement that discloses the compensation the real estate broker will receive. Additionally, it specifies that a prospective buyer remains a customer until such an agreement is established, and that an agency relationship cannot be assumed without a written contract.

The bill also modifies existing language regarding the handling of funds in real estate transactions, emphasizing the requirement for real estate brokers to maintain proper custodial trust or escrow accounts and to account for all funds received. Notably, the term "purchaser" has been replaced with "buyer" throughout the text, and the timeframe for filing complaints related to violations has been adjusted to 18 months from the date of the alleged violation or the completion of the transaction. The enactment of this bill is contingent upon the passage of two other related bills in the legislature.

Statutes affected:
House Introduced Bill: 339.2512
As Passed by the House: 339.2512