Colorado Legislative Council Staff

NO FISCAL IMPACT

Drafting Number:

Prime Sponsor(s):

LLS 99-0552

Sen. Teck

Rep. McElhany

Date:

Bill Status:

Fiscal Analyst:

January 20, 1999

Senate Business Affairs

Will Meyer (303-866-4976)

 

TITLE:            CONCERNING PROHIBITED ACTIVITIES IN CONNECTION WITH REAL ESTATE BROKERAGE RELATIONSHIPS.



Summary of Assessment


            The bill prohibits the payment of real estate brokerage referral fees by real estate licensees except in certain limited circumstances. The bill defines these circumstances as "unless reasonable cause for payment of the referral fee exists". A reasonable cause for payment means: (1) an actual introduction of business has been made; (2) a subagency relationship exists; (3) a contractual referral fee relationship exists; or (4) a contractual cooperative brokerage relationship exists. The bill further prohibits any licensee to interfere with the brokerage relationship of another licensee. The bill allows any person aggrieved by any violation of the provisions of the bill to bring a civil action, with the prevailing party entitled to treble damages. The bill would become effective ninety days after the adjournment of the Legislature, unless a referendum petition is filed and approved by the voters.


            The bill addresses unreasonable demands for the payment of referral fees and provides for a civil cause of action for the enforcement of its provisions. The provisions will not have a significant impact on any state agency, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.



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