Senate Bill Report SB 5050 — Senate Committee on Business, Financial Services & Trade (As of January 20, 2021)
Summary
This Senate Bill Report on SB 5050, as of January 20, 2021, is for the Senate Committee on Business, Financial Services & Trade; the bill concerns real estate firms and brokers and lists Senator Hasegawa as sponsor. The report states that the bill directs real estate firms and managing brokers to pay their brokers the portion of commissions due within a reasonable time period. Brokers that do not receive commissions in a timely manner may file a complaint with the Department of Licensing, and may also bring a civil action in superior court to recover commissions. The report states that a finding of failure to pay commissions in a reasonable time period is a violation subject to disciplinary action by the Department of Licensing, and lists the appropriation as None.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2021-01-21
- Case
- 2021 01 21 A28239 D225171 Bill Report 5050 Sba Bfst 21
Cite this document
“Senate Bill Report SB 5050 — Senate Committee on Business, Financial Services & Trade (As of January 20, 2021).”
Original at app.leg.wa.gov, dated 2021-01-21. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-01-21-2021-01-21-a28239-d225171-bill-report-5050-sba-bfst-21/
, SHA-256 b82b3c906dae81ea4848aedad93d1ff777e4dc2a25619a36db5b511c5a1e3049.Full text
SENATE BILL REPORT
SB 5050
As of January 20, 2021
Title: An act relating to real estate firms and brokers.
Brief Description: Concerning real estate firms and brokers.
Sponsors: Senator Hasegawa.
Brief History:
Committee Activity: Business, Financial Services & Trade: 1/21/21.
Brief Summary of Bill
• Directs real estate firms and managing brokers to pay their brokers in a
reasonable time period after receiving commissions.
• Provides brokers with options to pursue grievances regarding the
untimely payment of commissions, including the option to file a
complaint with the Department of Licensing (DOL).
• Ensures that a finding of failure to pay commissions in a reasonable time
period is a violation subject to disciplinary action by the DOL.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Clinton McCarthy (786-7319)
Background: A real estate broker, associate broker, or salesperson is required to obtain a
state license from the Department of Licensing (DOL). To receive a license, an individual
must meet certain requirements, including passing the license examination established by
the Washington Real Estate Commission and having a minimum amount of training. To
receive a broker's license, the applicant must have at least two years of experience as a
salesperson. A real estate broker is a person who:
• sells, lists, or buys real estate for others;
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 5050
• negotiates for others the purchase, sale, exchange, lease, or rental of real estate,
business opportunities, or a manufactured home in conjunction with the land on
which the home is located;
• advertises or holds themself out to the public as engaged in these activities; or
• engages, directs, or assists in procuring prospects or in negotiating or closing any
transaction which results in these activities.
To be licensed, a broker must complete 90 hours of instruction and pass a broker's licensing
examination. To renew a license, a broker must pay a renewal fee and complete an
additional 90 hours of instruction. A broker is only licensed to one firm and is supervised
by managing and designated brokers. Prompt delivery to managing brokers of required
records and complete copies of transactions is required. During the first two years of a
broker's licensure, a managing broker must provide a heightened level of supervision.
The director of DOL has the authority to take disciplinary action against any broker and
may impose sanctions or fines specified in statute. Examples of violations include:
• violating any lawful rules made by the director;
• making or promoting false statements to induce a person to act;
• knowingly committing any material fraud, misrepresentation, or concealment when
another party relies upon the word of the licensee;
• accepting the services of an unlicensed broker; and
• conversion of any money, contract, deed, or note to the licensee's own use.
Summary of Bill: Real estate firms and managing brokers are directed to pay their brokers
and managing brokers the portion of commissions due to the brokers within a reasonable
time period. Brokers that do not receive their commissions in a timely manner may file a
complaint with DOL. They may also bring a civil action in superior court to recover
commissions, enjoin future violations, or for an order requiring DOL to suspend or revoke a
license from a licensee.
When DOL receives a complaint, they must investigate to see if a violation has occurred,
and take action pursuant to statue if a violation is found to have occurred.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Senate Bill Report -2- SB 5050
File and source
- File
- 2021-01-21_a28239_d225171_bill-report-5050-sba-bfst-21.pdf
- Size
- 7,865 bytes
- SHA-256
- b82b3c906dae81ea4848aedad93d1ff777e4dc2a25619a36db5b511c5a1e3049
- Original
- app.leg.wa.gov