By: Haywood S.B. No. 577
A BILL TO BE ENTITLED
AN ACT
1-1 relating to licensing and registration requirements under The Real
1-2 Estate License Act; providing a penalty.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivision (5), Section 2, The Real Estate
1-5 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
1-6 amended to read as follows:
1-7 (5) "Person" means an individual or any other entity,
1-8 including but not limited to[,] a governmental body, limited
1-9 liability company, limited liability partnership, partnership, or
1-10 [a] corporation, foreign or domestic.
1-11 SECTION 2. Section 3, The Real Estate License Act (Article
1-12 6573a, Vernon's Texas Civil Statutes), is amended to read as
1-13 follows:
1-14 Sec. 3. The provisions of this Act shall not apply to any of
1-15 the following persons and transactions, and each and all of the
1-16 following persons and transactions are hereby exempted from the
1-17 provisions of this Act:
1-18 (1) an attorney at law licensed in this state or in
1-19 any other state;
1-20 (2) an attorney in fact under a duly executed power of
1-21 attorney authorizing the consummation of a real estate transaction;
1-22 (3) a public official in the conduct of his official
1-23 duties;
2-1 (4) a person calling the sale of real estate by
2-2 auction under the authority of a license issued by this state
2-3 provided the person does not perform any other act of a real estate
2-4 broker or salesman as defined by this Act;
2-5 (5) a person acting under a court order or under the
2-6 authority of a will or a written trust instrument;
2-7 (6) a salesperson employed by an owner in the sale of
2-8 structures and land on which said structures are situated, provided
2-9 such structures are erected by the owner in the due course of his
2-10 business;
2-11 (7) an on-site manager of an apartment complex;
2-12 (8) transactions involving the sale, lease, or
2-13 transfer of any mineral or mining interest in real property;
2-14 (9) an owner or his employees in renting or leasing
2-15 his own real estate whether improved or unimproved;
2-16 (10) transactions involving the sale, lease, or
2-17 transfer of cemetery lots; [or]
2-18 (11) transactions involving the renting, leasing, or
2-19 management of hotels or motels;
2-20 (12) a partnership or limited liability partnership
2-21 performing an act constituting an act of a broker or salesman, as
2-22 defined by this Act, through a partner who is duly licensed as a
2-23 real estate broker; or
2-24 (13) a person registered under Section 9A of this Act
2-25 who sells, buys, leases, or transfers an easement or right-of-way
3-1 for use in connection with telecommunication, utility, railroad, or
3-2 pipeline service.
3-3 SECTION 3. Section 4, The Real Estate License Act (Article
3-4 6573a, Vernon's Texas Civil Statutes), is amended to read as
3-5 follows:
3-6 Sec. 4. A person who, directly or indirectly for another,
3-7 with the intention or on the promise of receiving any valuable
3-8 consideration, offers, attempts, or agrees to perform, or performs,
3-9 a single act defined in Subdivisions 2 and 3, Section 2 of this
3-10 Act, whether as a part of a transaction, or as an entire
3-11 transaction, is deemed to be acting as a real estate broker or
3-12 salesman within the meaning of this Act. The commission of a
3-13 single such act by a person required to be licensed or registered
3-14 under this Act and not so licensed or registered shall constitute a
3-15 violation of this Act.
3-16 SECTION 4. Subsection (m), Section 5, The Real Estate
3-17 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
3-18 amended to read as follows:
3-19 (m) The commission shall charge and collect as a condition
3-20 for issuance and for renewal of a real estate broker license the
3-21 fee under Section 11(a)(14) of this Act. The commission shall
3-22 charge and collect as a condition for issuance and for renewal of a
3-23 registration under Section 9A of this Act the fee under Section
3-24 11(a)(14) of this Act. The commission shall charge and collect as
3-25 a condition for issuance and for renewal of a real estate salesman
4-1 license the fee under Section 11(a)(15) of this Act. The
4-2 commission shall transmit the fees under this subsection quarterly
4-3 to Texas A&M University for deposit in a separate banking account.
4-4 The money in the separate account shall be expended for the support
4-5 and maintenance of the Texas Real Estate Research Center and for
4-6 carrying out the purposes, objectives, and duties of the center.
4-7 However, all money expended from the separate account shall be as
4-8 determined by legislative appropriation.
4-9 SECTION 5. Section 6, The Real Estate License Act (Article
4-10 6573a, Vernon's Texas Civil Statutes), is amended by adding
4-11 Subsection (d) to read as follows:
4-12 (d) For an individual to be eligible for a registration or a
4-13 renewal of a registration under Section 9A of this Act, the
4-14 individual must be a citizen of the United States or a lawfully
4-15 admitted alien and be at least 18 years of age. For a corporation,
4-16 limited liability company, partnership, limited liability
4-17 partnership, or any other entity to be eligible for a registration
4-18 or renewal of a registration under Section 9A of this Act, it must
4-19 designate one of its officers, partners, or managers to act for it.
4-20 The designated person must be an individual registered under
4-21 Section 9A of this Act.
4-22 SECTION 6. Section 8, The Real Estate License Act (Article
4-23 6573a, Vernon's Texas Civil Statutes), is amended to read as
4-24 follows:
4-25 Sec. 8. (a) The commission shall establish a real estate
5-1 recovery fund which shall be set apart and maintained by the
5-2 commission as provided in this section. The fund shall be used in
5-3 the manner provided in this section for reimbursing aggrieved
5-4 persons who suffer actual damages by reason of certain acts
5-5 committed by a duly licensed real estate broker or salesman, a duly
5-6 registered person under Section 9A of this Act, or by an unlicensed
5-7 employee or agent of a broker or salesman, provided the registrant,
5-8 broker, or salesman was registered or licensed by the State of
5-9 Texas at the time the act was committed and provided recovery is
5-10 ordered by a court of competent jurisdiction against the
5-11 registrant, broker, or salesman. The use of the fund is limited to
5-12 an act that constitutes a violation of Section 15(a)(3) or (6) of
5-13 this Act if the judgment debtor was at the time of the violation a
5-14 licensed real estate broker or salesman. The use of the fund is
5-15 limited to an act that constitutes a violation of Section 9A(c)(1)
5-16 of this Act if the judgment debtor was at the time of the violation
5-17 registered under Section 9A of this Act.
5-18 (b) On application for an original license pursuant to this
5-19 Act, the applicant shall pay, in addition to his original license
5-20 application fee, a fee of $10 which shall be deposited in the real
5-21 estate recovery fund. On application for an original registration
5-22 under Section 9A of this Act and for each renewal of such
5-23 registration, the registrant shall pay, in addition to the
5-24 registrant's original application fee or renewal fee, a fee of $50,
5-25 which shall be deposited in the real estate recovery fund.
6-1 (c) If on December 31 of any year the balance remaining in
6-2 the real estate recovery fund is less than $1 million, each real
6-3 estate broker and each real estate salesman, on the next renewal of
6-4 his license, shall pay, in addition to his license renewal fee, a
6-5 fee of $10, which shall be deposited in the real estate recovery
6-6 fund, or a pro rata share of the amount necessary to bring the fund
6-7 to $1.7 million, whichever is less. If on December 31 of any year
6-8 the balance remaining in the real estate recovery fund is more than
6-9 $3.5 million or more than the total amount of claims paid from the
6-10 fund during the previous four fiscal years, whichever is greater,
6-11 the amount of money in excess of the greater amount shall be
6-12 transferred to the general revenue fund.
6-13 (d) No action for a judgment which subsequently results in
6-14 an order for collection from the real estate recovery fund shall be
6-15 started later than two years from the accrual of the cause of
6-16 action. When an aggrieved person commences action for a judgment
6-17 which may result in collection from the real estate recovery fund,
6-18 the registrant, real estate broker, or real estate salesman shall
6-19 notify the commission in writing to this effect at the time of the
6-20 commencement of the action.
6-21 (e) When an aggrieved person recovers a valid judgment in a
6-22 court of competent jurisdiction against a registrant, real estate
6-23 broker, or real estate salesman, on the grounds described in
6-24 Subsection (a) of this section that occurred on or after May 19,
6-25 1975, the aggrieved person may, after final judgment has been
7-1 entered, execution returned nulla bona, and a judgment lien
7-2 perfected, file a verified claim in the court in which the judgment
7-3 was entered and, on 20 days' written notice to the commission, and
7-4 to the judgment debtor, may apply to the court for an order
7-5 directing payment out of the real estate recovery fund of the
7-6 amount unpaid on the judgment, subject to the limitations stated in
7-7 Subsection (n) of this section.
7-8 (f) The court shall proceed on the application forthwith.
7-9 On the hearing on the application, the aggrieved person is required
7-10 to show that:
7-11 (1) the judgment is based on facts allowing recovery
7-12 under Subsection (a) of this section;
7-13 (2) he is not a spouse of the debtor, or the personal
7-14 representative of the spouse; and he is not a registrant under
7-15 Section 9A of this Act or a real estate broker or salesman, as
7-16 defined by this Act, who is seeking to recover a real estate
7-17 commission or any compensation in the transaction or transactions
7-18 for which the application for payment is made;
7-19 (3) he has obtained a judgment under Subsection (e) of
7-20 this section that is not subject to a stay or discharge in
7-21 bankruptcy, stating the amount of the judgment and the amount owing
7-22 on the judgment at the date of the application;
7-23 (4) based on the best available information, the
7-24 judgment debtor lacks sufficient attachable assets in this state or
7-25 any other state to satisfy the judgment; and
8-1 (5) the amount that may be realized from the sale of
8-2 real or personal property or other assets liable to be sold or
8-3 applied in satisfaction of the judgment and the balance remaining
8-4 due on the judgment after application of the amount that may be
8-5 realized.
8-6 (g) A recovery on the judgment against a single defendant
8-7 made before payment from the recovery fund must be applied by the
8-8 creditor first to actual damages.
8-9 (h) The court shall make an order directed to the commission
8-10 requiring payment from the real estate recovery fund of whatever
8-11 sum it finds to be payable on the claim, pursuant to and in
8-12 accordance with the limitations contained in this section, if the
8-13 court is satisfied, on the hearing, of the truth of all matters
8-14 required to be shown by the aggrieved person by Subsection (f) of
8-15 this section and that the aggrieved person has satisfied all of the
8-16 requirements of Subsections (e) and (f) of this section. The
8-17 commission may relitigate any issue material and relevant in the
8-18 hearing on the application that was determined in the underlying
8-19 action on which the judgment in favor of the applicant was based.
8-20 If the court finds that the aggregate amount of claims against a
8-21 registrant, real estate broker, or salesman exceeds the limitations
8-22 contained in this section, the court shall reduce proportionately
8-23 the amount it finds payable on the claim.
8-24 (i) A license or registration granted under the provisions
8-25 of this Act may be revoked by the commission on proof that the
9-1 commission has made a payment from the real estate recovery fund of
9-2 any amount toward satisfaction of a judgment against a registrant
9-3 under Section 9A of this Act or a licensed real estate broker or
9-4 salesman. The commission may probate an order revoking a license.
9-5 No registrant, broker, or salesman is eligible to receive a new
9-6 registration or license until he has repaid in full, plus interest
9-7 at the current legal rate, the amount paid from the real estate
9-8 recovery fund on his account.
9-9 (j) The sums received by the real estate commission for
9-10 deposit in the real estate recovery fund shall be held by the
9-11 commission in trust for carrying out the purposes of the real
9-12 estate recovery fund. These funds may be invested and reinvested
9-13 in the same manner as funds of the Texas State Employees Retirement
9-14 System, and the interest from these investments shall be deposited
9-15 to the credit of the real estate recovery fund, provided, however,
9-16 that no investments shall be made which will impair the necessary
9-17 liquidity required to satisfy judgment payments awarded pursuant to
9-18 this section.
9-19 (k) When the real estate commission receives notice of entry
9-20 of a final judgment and a hearing is scheduled under Subsection (h)
9-21 of this section, the commission may notify the Attorney General of
9-22 Texas of its desire to enter an appearance, file a response, appear
9-23 at the court hearing, defend the action, or take whatever other
9-24 action it deems appropriate. In taking such action the real estate
9-25 commission and the attorney general shall act only to protect the
10-1 fund from spurious or unjust claims or to insure compliance with
10-2 the requirements for recovery under this section.
10-3 (l) When, on the order of the court, the commission has paid
10-4 from the real estate recovery fund any sum to the judgment
10-5 creditor, the commission shall be subrogated to all of the rights
10-6 of the judgment creditor to the extent of the amount paid. The
10-7 judgment creditor shall assign all his right, title, and interest
10-8 in the judgment up to the amount paid by the commission which
10-9 amount shall have priority for repayment in the event of any
10-10 subsequent recovery on the judgment. Any amount and interest
10-11 recovered by the commission on the judgment shall be deposited to
10-12 the fund.
10-13 (m) The failure of an aggrieved person to comply with the
10-14 provisions of this section relating to the real estate recovery
10-15 fund shall constitute a waiver of any rights under this section.
10-16 (n) Notwithstanding any other provision, payments from the
10-17 real estate recovery fund are subject to the following conditions
10-18 and limitations:
10-19 (1) payments may be made only pursuant to an order of
10-20 a court of competent jurisdiction, as provided in Subsection (e) of
10-21 this section, and in the manner prescribed by this section;
10-22 (2) payments for claims, including attorneys' fees,
10-23 interest, and court costs, arising out of the same transaction
10-24 shall be limited in the aggregate to $50,000 regardless of the
10-25 number of claimants; and
11-1 (3) payments for claims based on judgments against any
11-2 one licensed real estate broker, licensed real estate [or]
11-3 salesman, or registrant under Section 9A of this Act may not exceed
11-4 in the aggregate $100,000 until the fund has been reimbursed by the
11-5 licensee or registrant for all amounts paid.
11-6 (o) Nothing contained in this section shall limit the
11-7 authority of the commission to take disciplinary action against a
11-8 registrant or licensee for a violation of this Act or the rules and
11-9 regulations of the commission; nor shall the repayment in full of
11-10 all obligations to the real estate recovery fund by a registrant or
11-11 licensee nullify or modify the effect of any other disciplinary
11-12 proceeding brought pursuant to this Act.
11-13 (p) Any person receiving payment out of the real estate
11-14 recovery fund pursuant to Section 8 of this Act shall be entitled
11-15 to receive reasonable attorney fees as determined by the court,
11-16 subject to the limitations stated in Subsection (n) of this
11-17 section.
11-18 (q) A registrant, broker, or salesman registered or licensed
11-19 under this Act shall notify consumers and service recipients of the
11-20 availability of the real estate recovery fund established under
11-21 this section for reimbursing certain aggrieved persons. The notice
11-22 must include the name, mailing address, and telephone number of the
11-23 commission and any other information required by commission rule.
11-24 The notification may be provided with the notice required by
11-25 Section 5(q) of this Act or:
12-1 (1) on a written contract for the services of a
12-2 registrant, broker, or salesman;
12-3 (2) on a brochure distributed by a registrant, broker,
12-4 or salesman;
12-5 (3) on a sign prominently displayed in the place of
12-6 business of a registrant, salesman, or broker; or
12-7 (4) in a bill or receipt for service provided by a
12-8 registrant, broker, or salesman.
12-9 SECTION 7. Section 9, The Real Estate License Act (Article
12-10 6573a, Vernon's Texas Civil Statutes), is amended to read as
12-11 follows:
12-12 Sec. 9. (a) When an applicant has satisfactorily met all
12-13 requirements and conditions of this Act, a license or certificate
12-14 of registration shall be issued which may remain in force and
12-15 effect so long as the holder of the certificate of registration or
12-16 license remains in compliance with the obligations of this Act,
12-17 which include payment of the renewal fee as provided in Section 11
12-18 of this Act. Each active salesman license issued shall be
12-19 delivered or mailed to the broker with whom the salesman is
12-20 associated and shall be kept under his custody and control.
12-21 (b) An applicant is not permitted to engage in the real
12-22 estate business either as a broker or salesman until a license
12-23 evidencing his authority to engage in the real estate business has
12-24 been received. A person may not engage in the business of selling,
12-25 buying, leasing, or transferring an easement or right-of-way for
13-1 another for compensation until the person is licensed or registered
13-2 under this Act.
13-3 (c) The commission by rule may adopt a system under which
13-4 licenses and registrations expire on various dates during the year.
13-5 Dates for payment of the renewal fee shall be adjusted accordingly.
13-6 For the year in which the renewal date is changed, renewal fees
13-7 payable shall be prorated on a monthly basis so each licensee or
13-8 registrant shall pay only that portion of the fee which is
13-9 allocable to the number of months during which the license or
13-10 registration is valid. On renewal of the license or registration
13-11 on the new renewal date, the total renewal fee is payable.
13-12 (d) Any other provision of this Act notwithstanding, the
13-13 commission may issue licenses and registrations valid for a period
13-14 not to exceed 24 months and may charge and collect renewal fees for
13-15 such period; provided, however, that such renewal fees shall not,
13-16 calculated on an annual basis, exceed the amounts established in
13-17 Section 11 of this Act, and further provided that the educational
13-18 conditions for renewal established in Subsection (e) of Section 7
13-19 of this Act shall not be waived by the commission.
13-20 (e) The commission shall require, in any application for a
13-21 broker or salesman license or a renewal of a broker or salesman
13-22 license, the applicant to disclose whether the applicant has
13-23 entered a plea of guilty or nolo contendere to, been found guilty
13-24 of, or been convicted of a felony and the time for appeal has
13-25 elapsed or the judgment or conviction has been affirmed on appeal,
14-1 irrespective of an order granting probation following the
14-2 conviction or suspending the imposition of sentence.
14-3 SECTION 8. The Real Estate License Act (Article 6573a,
14-4 Vernon's Texas Civil Statutes) is amended by adding Section 9A to
14-5 read as follows:
14-6 Sec. 9A. (a) A person may not sell, buy, lease, or transfer
14-7 an easement or right-of-way for another for compensation, or with
14-8 the intention or in the expectation or on the promise of receiving
14-9 or collecting compensation, for use in connection with
14-10 telecommunication, utility, railroad, or pipeline service unless
14-11 the person is:
14-12 (1) licensed as a real estate broker or real estate
14-13 salesman under this Act;
14-14 (2) exempt from this Act for the purpose of selling,
14-15 buying, leasing, or transferring an easement or right-of-way; or
14-16 (3) registered with the commission under this section.
14-17 (b) The commission shall maintain a registry of persons who
14-18 are registered under this section.
14-19 (c) The commission shall investigate a signed complaint
14-20 received by the commission that relates to the acts of a person
14-21 registered or required to be registered under this section. The
14-22 commission may revoke or suspend the registration of a registrant
14-23 under this section who:
14-24 (1) engaged in dishonest dealings, fraud, deceptive
14-25 acts, misrepresentations, bad faith, unlawful discrimination, or
15-1 untrustworthiness;
15-2 (2) failed within a reasonable time to make good a
15-3 check to the commission after the commission has mailed a request
15-4 for payment to the registrant's last known address as reflected in
15-5 the commission records;
15-6 (3) failed to provide to a party in a transaction a
15-7 written notice promulgated by the commission that is to be given
15-8 before the party is obligated to sell, buy, lease, or transfer a
15-9 right-of-way or easement and that contains the name of the
15-10 registrant, the certificate number of the registrant, the name of
15-11 the person the registrant represents, a statement advising the
15-12 party that the party may seek representation from a lawyer or real
15-13 estate broker in the transaction, and a statement generally
15-14 advising the party that the right-of-way or easement may affect the
15-15 value of the property; or
15-16 (4) disregarded or violated a provision of this Act or
15-17 a rule of the commission relating to registrants under this
15-18 section.
15-19 (d) The commission may adopt rules to administer and enforce
15-20 this section.
15-21 SECTION 9. Subsection (a), Section 10, The Real Estate
15-22 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
15-23 amended to read as follows:
15-24 (a) If the commission declines or fails to register or
15-25 license an applicant, it shall immediately give written notice of
16-1 the refusal to the applicant. Before the applicant may appeal to a
16-2 district court as provided in Section 18 of this Act, he must file
16-3 within 10 days after the receipt of the notice an appeal from the
16-4 ruling, requesting a time and place for a hearing before the
16-5 commission. The commission shall set a time and place for the
16-6 hearing within 30 days from the receipt of the appeal, giving 10
16-7 days' notice of the hearing to the applicant. The time of the
16-8 hearing may be continued from time to time with the consent of the
16-9 applicant. Following the hearing, the commission shall enter an
16-10 order which is, in its opinion, appropriate in the matter
16-11 concerned.
16-12 SECTION 10. Section 11, The Real Estate License Act (Article
16-13 6573a, Vernon's Texas Civil Statutes), is amended to read as
16-14 follows:
16-15 Sec. 11. (a) The commission shall charge and collect the
16-16 following fees:
16-17 (1) a fee not to exceed $100 for the filing of an
16-18 original application for a real estate broker license;
16-19 (2) a fee not to exceed $100 for annual renewal of a
16-20 real estate broker license;
16-21 (3) a fee not to exceed $50 for the filing of an
16-22 original application for a real estate salesman license;
16-23 (4) a fee not to exceed $50 for annual renewal of a
16-24 real estate salesman license;
16-25 (5) a fee not to exceed $25 for an application for a
17-1 license examination;
17-2 (6) a fee not to exceed $20 for filing a request for a
17-3 license for each additional office or place of business;
17-4 (7) a fee not to exceed $20 for filing a request for a
17-5 license or certificate of registration for a change of place of
17-6 business, change of name, return to active status, or change of
17-7 sponsoring broker;
17-8 (8) a fee not to exceed $20 for filing a request to
17-9 replace a license or certificate of registration lost or destroyed;
17-10 (9) a fee not to exceed $400 for filing an application
17-11 for approval of an education program under Section 7(f) of this
17-12 Act;
17-13 (10) a fee not to exceed $200 a year for operation of
17-14 an education program under Section 7(f) of this Act;
17-15 (11) a fee of $15 for transcript evaluation;
17-16 (12) a fee not to exceed $10 for preparing a license
17-17 or registration history;
17-18 (13) a fee not to exceed $50 for the filing of an
17-19 application for a moral character determination;
17-20 (14) an annual fee of $20 from each real estate broker
17-21 and each registrant under Section 9A of this Act to be transmitted
17-22 to Texas A&M University for the Texas Real Estate Research Center
17-23 as provided by Section 5(m) of this Act; [and]
17-24 (15) an annual fee of $17.50 from each real estate
17-25 salesman to be transmitted to Texas A&M University for the Texas
18-1 Real Estate Research Center as provided by Section 5(m) of this
18-2 Act;
18-3 (16) an annual fee of $80 from each registrant under
18-4 Section 9A of this Act; and
18-5 (17) any fee authorized under Section 8 of this Act
18-6 for the real estate recovery fund.
18-7 SECTION 11. Section 12, The Real Estate License Act (Article
18-8 6573a, Vernon's Texas Civil Statutes), is amended by adding
18-9 Subsection (e) to read as follows:
18-10 (e) The certificate of registration of a registrant under
18-11 Section 9A of this Act shall at all times be prominently displayed
18-12 in the registrant's place of business. Within 10 days after a move
18-13 from a previously designated address, the registrant shall notify
18-14 the commission of the move and obtain a new certificate of
18-15 registration reflecting the new location.
18-16 SECTION 12. Subsections (a) and (b), Section 16, The Real
18-17 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes),
18-18 are amended to read as follows:
18-19 (a) A license or registration granted under the provisions
18-20 of this Act shall be suspended or revoked by the commission on
18-21 proof that the licensee or registrant, not being licensed and
18-22 authorized to practice law in this state, for a consideration,
18-23 reward, pecuniary benefit, present or anticipated, direct or
18-24 indirect, or in connection with or as a part of his employment,
18-25 agency, or fiduciary relationship as a licensee, drew a deed, note,
19-1 deed of trust, will, or other written instrument that may transfer
19-2 or anywise affect the title to or an interest in land, except as
19-3 provided in the subsections below, or advised or counseled a person
19-4 as to the validity or legal sufficiency of an instrument or as to
19-5 the validity of title to real estate.
19-6 (b) Notwithstanding the provisions of this Act or any other
19-7 law, the completion of contract forms which bind the sale,
19-8 exchange, option, lease, or rental of any interest in real property
19-9 by a registrant under Section 9A of this Act, a real estate broker,
19-10 or a real estate salesman incident to the performance of the acts
19-11 of a broker as defined by this Act [article] does not constitute
19-12 the unauthorized or illegal practice of law in this state, provided
19-13 the forms have been promulgated for use by the commission for the
19-14 particular kind of transaction involved, or the forms have been
19-15 prepared by an attorney at law licensed by this state and approved
19-16 by said attorney for the particular kind of transaction involved,
19-17 or the forms have been prepared by the property owner or prepared
19-18 by an attorney and required by the property owner.
19-19 SECTION 13. Subsection (a), Section 19, The Real Estate
19-20 License Act (Article 6573a, Vernon's Texas Civil Statutes), is
19-21 amended to read as follows:
19-22 (a) A person acting as a real estate broker or real estate
19-23 salesman without first obtaining a license or a person required to
19-24 register under Section 9A of this Act who sells, purchases, leases,
19-25 or transfers a right-of-way or easement without first obtaining a
20-1 certificate of registration under Section 9A of this Act is guilty
20-2 of a misdemeanor and on conviction shall be punishable by a fine of
20-3 not less than $100 nor more than $500, or by imprisonment in the
20-4 county jail for a term not to exceed one year, or both; and if a
20-5 person other than an individual [corporation or a limited liability
20-6 company], shall be punishable by a fine of not less than $1,000 nor
20-7 more than $2,000. A person, on conviction of a second or
20-8 subsequent offense, shall be punishable by a fine of not less than
20-9 $500 nor more than $1,000, or by imprisonment for a term not to
20-10 exceed two years, or both; and if a person other than an individual
20-11 [corporation or a limited liability company], shall be punishable
20-12 by a fine of not less than $2,000 nor more than $5,000.
20-13 SECTION 14. (a) Except as provided by Subsection (b) of
20-14 this section, this Act takes effect September 1, 1997.
20-15 (b) Sections 3, 7, 8, and 13 of this Act take effect January
20-16 1, 1998.
20-17 SECTION 15. Transactions included within the provisions of
20-18 Section 9A, The Real Estate License Act (Article 6573a, Vernon's
20-19 Texas Civil Statutes), as added by this Act, shall be governed by
20-20 this Act from and after its effective date. Transactions executed
20-21 prior to that date are validated in all respects with regard to
20-22 compliance with the licensing provisions of Section 1, The Real
20-23 Estate License Act (Article 6573a, Vernon's Texas Civil Statutes).
20-24 SECTION 16. The importance of this legislation and the
20-25 crowded condition of the calendars in both houses create an
21-1 emergency and an imperative public necessity that the
21-2 constitutional rule requiring bills to be read on three several
21-3 days in each house be suspended, and this rule is hereby suspended.