CHAPTER 603

FORMERLY

SENATE BILL NO. 70

AS AMENDED BY SENATE AMENDMENT NO. 1 AND

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 29, TITLE 24, DELAWARE CODE RELATING TO REAL ESTATE BROKERS, SALESPERSONS AND APPRAISERS

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend subsection (a), §2902, Chapter 29, Title 24, Delaware Code by striking said subsection in its entirety and substituting the following in lieu thereof:

"(a) The Delaware Real Estate Commission shall consist of 9 members appointed by the Governor: 5 professional members, 4 of whom shall be licensed real estate brokers, and I salesperson; and 4 public members. All members shall have been residents of the State of Delaware for 5 years immediately prior to such appointment.

(1) Four of the professional members shall be brokers: one shall be a resident of New Castle County; one shall be a resident of Kent County; one shall be a resident of Sussex County; and one shall maintain an office in the City of Wilmington. Broker members of the Commission shall have been active brokers or salespersons for 5 years immediately prior to their appointment.

(2) One of the professional members shall be a salesperson. The salesperson member shall have been an active salesperson for 4 years immediately prior to his/her appointment.

(3) Of the 4 public members, at least one public member shall be from each county. To serve on the Commission, a public member shall not be, not have been within the last eight (8) years of the effective date of appointment. a real estate salesperson or broker, nor a member of the immediate family of a salesperson or broker; shall not be, nor have been with the last eight (8) years of the effective date of appointment, employed by a real estate broker; shall not have had a financial interest in the providing of goods and services to a real estate broker or salesperson; and shall not be, nor have been within the last eight (8) years of the effective date of appointment, engaged in an activity directly related to the real estate profession. Such public member shall be accessible to inquiries, comments and suggestions from the general public."

Section 2. Amend subsection (b), §2902, Chapter 29, Title 24, Delaware Code by striking said subsection in its entirety and substituting the following in lieu thereof:

"(b) Each member shall serve for a term of 3 years, unless otherwise specified in this Chapter; and may succeed him/herself for one additional term; provided. however, that where a member was initially appointed to fill a vacancy, such member may succeed him/herself for only I additional full term. Any person appointed to fill a vacancy on the Commission shall hold office for the remainder of the unexpired term of the former member."

Section 3. Amend subsection (c), §2902, Chapter 29, Title 24, Delaware Code by striking said subsection in its entirety and substituting the following in lieu thereof:

"(c) No member of the Real Estate Commission, while serving on the Commission, shall be a president, president-elect, vice-president, secretary. treasurer, or other elected official of a professional association of real estate brokers or salespersons."

Section 4. Amend subsection (d), §2902, Chapter 29, Title 24, Delaware Code by striking said subsection in its entirety and substituting the following in lieu thereof:

"(d) No current Commissioner shall be subject to the provisions of §2902(a)( I) and (3), of this Title, unless and until the time of such Commissioner's reappointment to the Delaware Real Estate Commission."

Section 5, Amend subsection (e), §2902, Chapter 29, Title 24, Delaware Code by striking the words "subsection (d)" where they occur in said subsection (e) and substituting the words "subsection (b)" in lieu thereof.

Section 6. Amend subsection (1), §2902, Chapter 29, Title 24, Delaware Code by striking said subsection in its entirety and substituting the following in lieu thereof:

"(f) The provisions set forth for 'employees' in Chapter 58 of Title 29 shall apply to all members of the Commission, and to all agents appointed, or otherwise employed, by the Commission."

Section 7. Amend §2903, Chapter 29, Title 24. Delaware Code by striking said Section in its entirety and substituting the following in lieu thereof:

"§2903. Election of officers: quorum: special meetings

(a) In the same month of each year the members shall elect, from among their number, a Chairperson, Vice-Chairperson and Secretary. Each officer shall serve for I year, and shall not succeed him/herself in the same office.

(b) The Commission shall hold regularly scheduled business meetings at least once in each quarter of a calendar year, and at such other times as the Chair deems necessary; or at the request of a majority of Commission members. Special or emergency meetings may be held without notice provided a quorum is present.

(a) A majority of members shall constitute a quorum; and no disciplinary action shall be taken without the affirmative vote of at least 5 members. Any member who fails to attend 3 consecutive unexcused meetings, or who fails to attend at least half of all regular business meetings during any calendar year, shall automatically upon such occurrence be deemed to have resigned from office and a replacement shall be appointed.

(c) Minutes of all meetings shall be recorded, and copies shall be maintained by the Division of Professional Regulation. At any hearing where evidence is presented. such hearing shall be recorded and transcribed by the Division. Each party in such a hearing shall be entitled, upon request, to obtain a copy of such transcript at his or her own expense.

(d) The Commission may adopt a seal and may use that seal on all official documents."

Section 8. Amend §2907. Chapter 29, Title 24, Delaware Code by striking said Sections in its entirety and substituting the following in lieu thereof:

"§2907. Qualifications for certificate: application: examination.

(a) An applicant who is applying for a certificate of registration under this Chapter shall have the following qualifications:

(1) The applicant shall be competent to transact the business of a real estate broker or real estate salesperson in such manner as to safeguard the interests of the public;

(2) The applicant shall provide such information as may be required on an application form designed and furnished by the Board with the approval of the Division of Professional Regulation. No application form shall require a picture of the applicant; require information relating to citizenship, place of birth, length of state residency; nor require personal references;

(3) The applicant shall be required to pass a uniform national and state examination as is contractually arranged for, with a nationally recognized independent testing service, by the Director of the Division of Regulation.

(4) The applicant shall not have been convicted of a felony, nor have been professionally penalized, nor convicted for drug addiction, nor have been professionally penalized or convicted for fraud.

(b) Where the Commission has found to its satisfaction that an applicant has been intentionally fraudulent, or that false information has been intentionally supplied. it shall report its findings to the Attorney General for further action.

(c) Where the application of a person has been refused or rejected and such applicant feels that the Commission has acted without justification; has imposed higher or different standards for him/her than for other applicants or registrants; or, has in some other manner contributed to or caused the failure of such application, the applicant may appeal to the Superior Court.

(d) Every application for a certificate under this Chapter shall be accompanied by the fee prescribed by §2908 of this Title."

Section 9. Amend Subsection (b), § 2911, Chapter 29, Title 24, Delaware Code by striking the words "15 continuing education hours approved by the Commission" and substituting "continuing education hours in an amount to be prescribed by the rules and regulations of the Commission" in lieu thereof; and by striking the sentence "The requirement shall take effect with the 1984 application for renewal, except that the Commission shall require evidence of only 8 hours of continuing education for the purpose of the 1984 application for renewal" in its entirety.

Section 10. Amend §2920, Chapter 29, Title 24, Delaware Code by adding to said Section the following:

"Notwithstanding the foregoing provisions, the Real Estate Commission shall permit a real estate salesperson, who possesses a valid certificate of registration in this state, to put his/her certificate of registration on an inactive list for an unlimited amount of time. The real estate salesperson may reactivate his/her certificate of registration, subject to payment of the biennial registration fees, for such time as the certificate has been inactive, upon submission of proof of fulfillment of continuing education requirements for each renewal period."

Section 11. Amend subsection (a), §2921, Chapter 29, Title 24, Delaware Code h) striking the sum 110,000" as the same appears in said subsection and substituting the sum 125,000" in lieu thereof.

Section 12. Amend §2921, Chapter 29, Title 24, Delaware Code by redesignating present subsection (b) as new subsection (c), and redesignating each succeeding subsection accordingly.

Section 13. Amend §2921, Chapter 29, Title 24, Delaware Code by adding a new subsection (b), which new subsection shall read as follows:

"(b) The Real Estate Commission shall inform the aggrieved person, immediately upon receipt of a written complaint, either sent to the Commission or the Division of Professional Regulation, that a Real Estate Guaranty Fund is available. and the steps necessary to comply with the provisions of this Section to recover compensation for any of the foregoing acts of a real estate salesperson or real estate broker."

Section 14. The Commission shall consist of the members presently serving unexpired terms on the Commission as it existed prior to the enactment date of this Act. Upon the expiration of the terms of office of those presently serving, the Governor shall appoint new members until such time as the Commission is composed of members meeting the requirements of this Act.

Approved August 7, 1996