| Summary |
The bill states that, with certain exceptions, a broker engagement
contract for the sale of a residential premises must not:
•
Purport to be a covenant running with the land or to be
binding on future owners of interests in the real property;
•
Allow for assignment of the right to provide service
without notice and agreement of the owner of the
residential premises; or
•
Purport to create a recordable lien, encumbrance, or other
real property security interest. Any such lien, encumbrance,
or other real property security interest is void and
unenforceable.
The bill defines a broker engagement contract as a written
contract in which a seller, buyer, landlord, or tenant of a residential
premises becomes the client of a broker and promises to pay the broker
a valuable consideration or agrees that the broker may receive a valuable
consideration from another person in exchange for the broker producing
a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or
rent the residential premises or for performing other services.
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