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IN HB1338
Bill
Status
1/14/2019
Primary Sponsor
Mike Speedy
Click for details
AI Summary
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Requires persons who manage common areas and facilities for homeowners associations or condominium associations to obtain and maintain a real estate broker license, regardless of whether they are involved in actual property sales or leases
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For self-managed subdivisions, neighborhoods, or condominiums, at least one board member of the HOA or association of co-owners must hold a real estate broker license
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Licensed property managers are subject to all broker licensing requirements including examinations, continuing education, fee payments, standards of practice, and sanctions for violations
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The attorney general may investigate and prosecute complaints against property managers, including issuing cease and desist orders for those operating without a license
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Effective date: July 1, 2019
Legislative Description
Broker licensure for property managers. Specifies that a person that, for consideration, manages the common areas and facilities or other property of: (1) a subdivision or neighborhood on behalf of a homeowners association; or (2) a condominium on behalf of an association of co-owners; must obtain and maintain a real estate broker license (license) regardless of whether the person or any of the person's partners, members, or employees is engaged in the actual sale or lease of real estate or units of real estate in the subdivision, neighborhood, or condominium. Provides that the same requirement applies to at least one member of the board of directors of: (1) a homeowners association; or (2) an association of co-owners; in the case of a subdivision, neighborhood, or condominium that is self-managed with respect to the common areas, facilities, and other property of the subdivision, neighborhood, or condominium. Specifies that a person or board member engaging in such management activities is subject to all applicable statutory provisions concerning: (1) the requirements for the issuance and renewal of a license; (2) the standards of practice for licensees, including sanctions for violations of the standards; (3) enforcement proceedings and penalties for performing management activities without a license; and (4) the investigation and prosecution by the attorney general of complaints made against the person with respect to such management activities. Requires the attorney general and the real estate commission to seek to achieve consistency in conducting investigations and prosecutions and in applying sanctions, as applicable. Specifies that a person or board member engaging in such management activities acts, and is obligated to be licensed, on behalf of both: (1) the homeowners association or the association of co-owners as a corporation or an entity; and (2) the individual members of the homeowners association or the association of co-owners. Makes conforming amendments in the statutes governing: (1) condominiums; and (2) homeowners associations.
Last Action
First reading: referred to Committee on Employment, Labor and Pensions
1/14/2019