SCS HB 866 -- TRANSACTION BROKERS

This bill contains provisions relating to real estate licensees
with the designation of transaction brokers.  The bill:

(1)  Expands the definitions of broker relationship, designated
broker, and subagent;

(2)  Adds the definition of a designated transaction broker;

(3)  Allows designated brokers to be considered as transaction
brokers unless they entered into dual agency agreements,
assisting other parties to the same transactions through
licensed affiliates, or making a listing presentation to
customers in anticipation of entering into an agreement;

(4)  States that transaction brokers have no obligation to
independently inspect or investigate for adverse material facts
for the involved parties; and

(5)  Allows affiliated licensees who have been excluded from an
agreement regarding buying or selling property to enter into a
subagency relationship by disclosing to the customer that they
are a subagent of the client.

The bill has an effective date of January 1, 2000.

HB 866 -- TRANSACTION BROKERS (Treadway)

This bill contains provisions relating to real estate licensees
with the designation of transaction brokers.  The bill:

(1)  Expands the definitions of broker relationship, designated
broker, and subagent;

(2)  Adds the definition of a designated transaction broker;

(3)  Allows designated brokers to be considered as transaction
brokers unless they entered into dual agency agreements,
assisting other parties to the same transactions through
licensed affiliates, or making a listing presentation to
customers in anticipation of entering into an agreement;

(4)  States that transaction brokers have no obligation to
independently inspect or investigate for adverse material facts
for the involved parties; and

(5)  Allows affiliated licensees who have been excluded from an
agreement regarding buying or selling property to enter into a
subagency relationship by disclosing to the customer that they
are a subagent of the client.

FISCAL NOTE:  No impact on state funds.

HB 866 -- TRANSACTION BROKERS

SPONSOR:  Treadway

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Professional Registration and Licensing by a vote of 15 to 0.

This bill contains provisions relating to real estate licensees
with the designation of transaction brokers.  The bill:

(1)  Expands the definitions of broker relationship, designated
broker, and subagent;

(2)  Adds the definition of a designated transaction broker;

(3)  Allows designated brokers to be considered as transaction
brokers unless they entered into dual agency agreements,
assisting other parties to the same transactions through
licensed affiliates, or making a listing presentation to
customers in anticipation of entering into an agreement;

(4)  States that transaction brokers have no obligation to
independently inspect or investigate for adverse material facts
for the involved parties; and

(5)  Allows affiliated licensees who have been excluded from an
agreement regarding buying or selling property to enter into a
subagency relationship by disclosing to the customer that they
are a subagent of the client.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this is further clean up
language for last year's House Bill 1601.

Testifying for the bill were Representative Treadway; and
Missouri Association of Realtors.

OPPONENTS:  There was no opposition voiced to the committee.

Bob Dominique, Legislative Analyst

HB 866 -- Transaction Brokers

Sponsor:  Treadway

This bill contains provisions relating to real estate licensees
with the designation of transaction brokers.  The bill:

(1)  Expands the definitions of broker relationship, designated
broker, and subagent;

(2)  Adds the definition of a designated transaction broker;

(3)  Allows designated brokers to be considered as transaction
brokers unless they entered into dual agency agreements,
assisting other parties to the same transactions through
licensed affiliates, or making a listing presentation to
customers in anticipation of entering into an agreement;

(4)  States that transaction brokers have no obligation to
independently inspect or investigate for adverse material facts
for the involved parties; and

(5)  Allows affiliated licensees who have been excluded from an
agreement regarding buying or selling property to enter into a
subagency relationship by disclosing to the customer that they
are a subagent of the client.