HB 266 -- REAL ESTATE BROKERS

SPONSOR:  Treadway

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Professional Registration and Licensing by a vote of 15 to 0.

This bill requires that reasonable cause be established before
any commission is paid by a real estate agent or broker.
Reasonable cause does not exist unless the party seeking
compensation actually introduces the business to the licensee
before a relationship is established between the licensee and
the principal to the transaction.  Even though reasonable cause
exists, it will not guarantee the interested party a legal right
to receive compensation.

Nothing in the bill prohibits any consumer from joining any
organization in which one of the benefits includes the
organization's ability to negotiate prices for real estate, nor
does it prohibit any inducements to the buyer.  Further, nothing
prohibits an employer from directing an employee from following
all terms of relocation packages or prohibits the employer's
choice of relocation providers.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill is needed because in
certain situations relocation companies have demanded fees for
real estate transactions which they have not been a party to.

Testifying for the bill were Representative Treadway; Missouri
Association of Realtors; Missouri Real Estate Agents
Association; and National Employee Relocation Council.

OPPONENTS:  There was no opposition voiced to the committee.

Bob Dominique, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am