Bill Text: MS HB1532 | 2019 | Regular Session | Introduced


Bill Title: Real estate brokers; prohibit from doing business in state if not a licensed Mississippi resident broker or Mississippi licensed nonresident broker.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-02-05 - Died In Committee [HB1532 Detail]

Download: Mississippi-2019-HB1532-Introduced.html

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Judiciary A

By: Representative Tullos

House Bill 1532

AN ACT TO AMEND SECTION 73-35-11, MISSISSIPPI CODE OF 1972, TO PROHIBIT REAL ESTATE BROKERS OR SALESPERSONS WHO ARE NOT LICENSED MISSISSIPPI RESIDENT BROKERS OR MISSISSIPPI LICENSED NONRESIDENT BROKERS OR SALESPERSONS FROM DOING BUSINESS AS A REAL ESTATE BROKER OR SALESPERSON IN THE STATE; TO BRING FORWARD SECTIONS 73-35-8 AND 73-35-10, MISSISSIPPI CODE OF 1972, WHICH RELATE TO REAL ESTATE BROKER LICENSES, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 73-35-11, Mississippi Code of 1972, is amended as follows:

     73-35-11.  It shall be unlawful for any licensed broker, salesperson or other person who is not licensed as a Mississippi resident or nonresident broker or salesperson and a licensed broker or licensed salesperson in this state to perform any of the acts regulated by this chapter * * *, except that a licensed broker of another state who does not hold a Mississippi real estate license may cooperate with a licensed broker of this state provided that any commission or fee resulting from such cooperative negotiation shall be stated on a form filed with the commission reflecting the compensation to be paid to the Mississippi broker.

 * * *Whenever a Mississippi broker enters into a cooperative agreement under this section, the Mississippi broker shall file within ten (10) days with the commission a copy of each such written agreement. By signing the agreement, the nonresident broker who is not licensed in this state agrees to abide by Mississippi law, and the rules and regulations of the commission; and further agrees that civil actions may be commenced against him in any court of competent jurisdiction in any county of this state in which a claim may arise.

The Mississippi broker shall require a listing or joint listing of the property involved. The written cooperative agreements shall specify all material terms of each agreement, including but not limited to its financial terms.

The showing of property located in Mississippi and negotiations pertaining thereto shall be supervised by the Mississippi broker. In all advertising of real estate located in Mississippi, the name and telephone number of the Mississippi broker shall appear and shall be given equal prominence with the name of the nonresident broker who is not licensed in this state.

The Mississippi broker shall be liable for all acts of the above cooperating broker, as well as for his own acts, arising from the execution of any cooperative agreement.

The Mississippi broker shall determine that the cooperating broker is licensed as a broker in another state.

All earnest money pertaining to a cooperative agreement must be held in escrow by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.

     SECTION 2.  Section 73-35-8, Mississippi Code of 1972, is brought forward as follows:

     73-35-8.  (1)  A nonresident may apply for a nonresident's license in Mississippi provided the individual is (a) a licensed broker in another state, or (b) is a broker/salesperson or salesperson affiliated with a resident or nonresident Mississippi broker, or (c) is a nonresident who applies for a broker's license and who will maintain an office in Mississippi.  The nonresident broker need not maintain a place of business within Mississippi provided he is regularly actively engaged in the real estate business and maintains a place of business in the other state.  The nonresident licensee or applicant shall be subject to all the provisions of this chapter, except for the residency requirement and approved equivalent prelicensing education.

     (2)  Every nonresident applicant shall file a statement of irrevocable consent with the Real Estate Commission that legal actions may be commenced against him in the proper court of any county of this state in which a cause of action may arise or in which the plaintiff may reside by service of process or pleading authorized by the laws of this state, by the Secretary of State of Mississippi, or by any member of the commission or chief executive officer thereof, the consent stipulating that the service of process or pleading shall be taken in all courts to be valid and binding as if personal service had been made upon the nonresident licensee in this state.  The consent shall be duly acknowledged. Every nonresident licensee shall consent to have any hearings conducted by the commission pursuant to Section 73-35-23, Mississippi Code of 1972, at a place designated by the commission.

     (3)  Any service of process or pleading shall be served on the executive officer of the commission by filing duplicate copies, one (1) of which shall be filed in the office of the commission and the other forwarded by certified mail to the last-known principal address of the nonresident licensee against whom such process or pleading is directed.  No default in any such action shall be taken except upon an affidavit of certification of the commission or the executive officer thereof that a copy of the process or pleading was mailed to the defendant as herein provided, and no default judgment shall be taken in any such action or proceeding until thirty (30) days after the mailing of process or pleading to the defendant.

     (4)  An applicant shall sign an agreement to cooperate with any investigation of the applicant's real estate brokerage activities which the commission may undertake.

     (5)  Each applicant for a nonresident license must qualify in all respects, including education, background investigation, examination and fees, as an applicant who is a resident of Mississippi with the exception of the residency requirement and approved equivalent prelicensing education.

     (6)  A certification from the Executive Officer of the Real Estate Commission in the state in which the nonresident maintains his principal place of business shall be required.  An applicant shall disclose all states in which he has held a real estate license and furnish a certification of licensure from that state or states.

     (7)  The applicant/broker shall obtain an appropriate Mississippi license for the firm through which he intends to operate as a broker.

     (8)  Any nonresident broker, broker-salesperson and salesperson shall meet Mississippi continuing education requirements after becoming licensed just as any resident licensee.

     (9)  A broker or salesperson licensed in this state, on inactive status in good standing and no longer a resident of this state, may, after meeting other requirements for nonresident licensees, make application for a nonresident license without being required to meet current prelicensing educational requirements at the time of application or having to sit for the examination in order to obtain the equivalent nonresident license.

     (10)  A nonresident licensee in good standing who changes his legal domicile to the State of Mississippi may obtain a resident license equivalent to his nonresident license without meeting the current educational requirements or sitting for the examination, provided other requirements set forth for residents of the state are met.

     (11)  A nonresident licensee may utilize the inactive status for his license under the same requirements as a resident licensee, including, but not limited to, continuing education requirements and ceasing active status under a licensed nonresident broker.

     SECTION 3.  Section 73-35-10, Mississippi Code of 1972, is brought forward as follows:

     73-35-10.  (1)  (a)  To qualify for a Mississippi real estate broker's license or a Mississippi resident license as a real estate salesperson, or a nonresident's license in Mississippi, an applicant must have successfully been cleared for licensure through an investigation that shall consist of a determination that the applicant does not possess a background which calls into question public trust, as set forth below in subsection (2), and verification that the prospective licensee is not guilty of or in violation of any statutory ground for denial of licensure as set forth in Section 73-35-21.

          (b)  To assist the commission in conducting its licensure investigation, from and after July 1, 2016, all applicants for a Mississippi real estate broker's license, or a Mississippi resident license as a real estate salesperson, or a nonresident's license in Mississippi, and all applicants for renewal of any real estate license shall undergo a fingerprint-based criminal history records check of the Mississippi central criminal database and the Federal Bureau of Investigation criminal history database.  Each applicant shall submit a full set of the applicant's fingerprints in a form and manner prescribed by the commission, which shall be forwarded to the Mississippi Department of Public Safety (department) and the Federal Bureau of Investigation Identification Division for this purpose.

          (c)  Any and all state or national criminal history records information obtained by the commission that is not already a matter of public record shall be deemed nonpublic and confidential information restricted to the exclusive use of the commission, its members, officers, investigators, agents and attorneys in evaluating the applicant's eligibility or disqualification for licensure, and shall be exempt from the Mississippi Public Records Act of 1983.  Except when introduced into evidence in a hearing before the commission to determine licensure, no such information or records related thereto shall, except with the written consent of the applicant or by order of a court of competent jurisdiction, be released or otherwise disclosed by the commission to any other person or agency.

          (d)  The commission shall provide to the department the fingerprints of the applicant, any additional information that may be required by the department, and a form signed by the applicant consenting to the check of the criminal records and to the use of the fingerprints and other identifying information required by the state or national repositories.

          (e)  The commission shall charge and collect from the applicant, in addition to all other applicable fees and costs, such amount as may be incurred by the commission in requesting and obtaining state and national criminal history records information on the applicant.

     (2)  (a)  The commission must ensure that applicants for real estate licenses do not possess a background that could call into question public trust.  An applicant found by the commission to possess a background which calls into question the applicant's ability to maintain public trust shall not be issued a real estate license.

          (b)  The commission shall not issue a real estate license if:

              (i)  The applicant has had a real estate license revoked in any governmental jurisdiction within the five-year period immediately preceding the date of the application;

              (ii)  The applicant has been convicted of, or pled guilty or nolo contendere to, a felony in a domestic or foreign court:

                   1.  During the five-year period immediately preceding the date of the application for licensing; or

                   2.  At any time preceding the date of the application, if such felony involved an act of fraud, dishonesty or a breach of trust, or money laundering.

          (c)  The commission shall adopt rules and regulations necessary to implement, administer and enforce the provisions of this section.

          (d)  The requirement of a criminal background check provided in this section shall not apply to persons who have held a broker's or salesperson's license in this state for at least twenty-five (25) years and who are older than seventy (70) years of age.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2019.


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