Sec. 18. Effective date. This Act takes effect January 1, 2006.

SUMMARY

This bill amends the real estate brokerage license laws as follows:

1. It clarifies the definitions of the words "real estate brokerage agency" and "agency";

2. It repeals the current real estate brokerage contract section and enacts a section titled "Brokerage agreements." Brokerage agreements between a real estate company providing brokerage services to a client seller or buyer are required to be in writing, to include 4 specific contract provisions and to terminate a real estate company's rights to enforce an agreement after the expiration date against a client who engages the services of another real estate brokerage agency;

3. It amends the trust account section to permit brokerage trust accounts to be maintained only in a federally insured financial institution authorized to do business in this State, as defined in the Maine Revised Statutes, Title 9-B, section 131, subsection 17-A, or a credit union authorized to do business in this State as defined in Title 9-B, section 131, subsection 12-A, and authorizes the Real Estate Commission to adopt rules to establish standards by which trust account records are to be maintained;

4. It enacts a section that authorizes the Real Estate Commission to adopt rules establishing the requirements for real estate companies to maintain brokerage records, including a retention schedule;

5. It amends the agency relationship subchapter and establishes a nonagent presumption standard for real estate brokerage companies called "transaction broker." The roles of the transaction broker, buyer agent, seller agent and disclosed dual agent are clarified and the responsibilities to buyers and sellers are established; and

6. It adopts an effective date of January 1, 2006 for the bill.