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.
