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 BackHOUSE OF REPRESENTATIVES
Committee Report
| Legislation: | HB 218 |
| Sponsor: | Valihura |
| Long Title: | AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS, SALESPERSONS AND APPRAISERS. |
| Committee: | POLICY ANALYSIS & GOVERNMENT ACCOUNTABILITY |
| Number of Committee Members: | 5 |
| Date of Report: | 06/20/2007 |
| Committee Vote: | Favorable: | On Its Merits: | Unfavorable: |
| 0 | 5 | 0 |
Purpose of the Bill : This Bill clarifies that the employer of the real estate salesperson or broker remains liable for the wrongful actions of the licensee. This clarification is necessary because some lawyers have asked if House Bill No. 122 from the 143rd General Assembly (Delaware’s new real estate agency law) removed liability from the employer. This Bill also corrects a word in the definition of Statutory Agent. This Bill also exempts certain commercial real estate transactions from the obligation to provide the Consumer Information Statement. Pennsylvania and Maryland have exempted certain commercial transactions from their consumer notice requirements. This Bill also clarifies the duty of confidentiality for certain commercial transactions. This Bill makes § 2973(b) consistent with § 2973(f) regarding notice to a party. For transactions exempt from providing the CIS this Bill clarifies when duties of the agent begin. Section 7 is a correction to make it consistent with § 2931. Section 8 is to delete the definitions of “(3) Disposition of land” and “(6) Subdivision” because those definitions went with the Out of State Land Sales Act which was deleted in its entirety by SB 370 of the 143rd General Assembly. Section 9 delays the effective date of the new agency law to give more time for the Delaware Real Estate Commission to approve the Consumer Information Statement and for brokers to train their salespeople on the new law.
Committee Findings: The committee supports releasing this legislation and feel it is advantageous not only to the brokers, salespersons, and appraisers but also to Delawarean consumers.
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