Report Title:

Real Estate Brokers; Licensure Prohibitions

Description:

Prohibits persons convicted of felonies involving fraud or misrepresentation from being licensed as a real estate broker.

HOUSE OF REPRESENTATIVES	H.B. NO.	51
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO REAL ESTATE BROKERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 467-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  No license, registration, or certificate under this chapter shall be issued to:

     (1)  Any individual applying for a real estate broker or salesperson license who does not satisfy the requirements set forth in section 467-9.5;

     (2)  Any individual applying for a real estate broker or salesperson license unless the individual has demonstrated by passing with a grade satisfactory to the commission an examination appropriate to the license sought that the individual has a reasonable knowledge of:

          (A)  Estates, interests, and rights in real property;

         (B)  The documents or acts or occurrences by which property is transferred or otherwise affected;

         (C)  The rights and duties of an agent;

         (D)  The laws of the State relating to real estate brokers and salespersons; and

         (E)  Other subjects that the commission determines to be essential for the protection of the general public in its real estate transactions;

     (3)  Any person who does not possess a reputation for or record of competency, honesty, truthfulness, financial integrity, and fair dealing;

     (4)  Any partnership unless the real estate brokerage business thereof is under the direct management of a principal broker who is a general partner or employee thereof and holds a current active real estate broker's license;

     (5)  Any corporation unless the real estate brokerage business thereof is under the direct management of a principal broker who is an officer or employee thereof and holds a current active real estate broker's license;

     (6)  Any individual applying for a real estate broker's license who does not have a current Hawaii real estate salesperson's license;

     (7)  Any person with a trade name, partnership, limited liability company, or corporation that is not currently registered with the business registration division of the department of commerce and consumer affairs; provided that no real estate salesperson's license shall be approved or issued with a trade name; [or]

     (8)  Any limited liability company unless the real estate brokerage business is under the direct management of a principal broker who is a member of a member-managed limited liability company or a manager of a manager-managed limited liability company or employee and holds a current active real estate broker's license[.]; or

(9) Any individual applying for a real estate broker's license who has been convicted in any state or country of a felony involving intent to defraud or misrepresent, which in this State is classified at least as a class C felony."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

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