0001| HOUSE BILL 472
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| EARLENE ROBERTS
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO THE NEW MEXICO REAL ESTATE COMMISSION; PROVIDING
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0012| ADDITIONAL POWERS AND DUTIES.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 61-29-4.1 NMSA 1978 (being Laws 1985,
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0016| Chapter 89, Section 1, as amended) is amended to read:
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0017| "61-29-4.1. ADDITIONAL POWERS OF COMMISSION--CONTINUING
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0018| EDUCATION PROGRAMS--MINIMUM REQUIREMENTS.--In addition to the
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0019| powers and duties granted the commission under the provisions
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0020| of Section 61-29-4 NMSA 1978:
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0021| A. the commission shall adopt regulations
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0022| providing for continuing educational programs that offer
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0023| courses in selling, leasing or managing residential,
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0024| commercial and industrial property as well as courses
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0025| reviewing basic real estate law and practice. The regulations
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0001| shall require that every licensee except licensees who are
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0002| sixty-five years of age or older and who have a minimum of
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0003| twenty years' continuously licensed experience in the selling,
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0004| leasing or managing of real property, as a condition of his
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0005| license renewal, shall successfully complete thirty classroom
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0006| hours of instruction every three years in courses approved by
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0007| the commission. The regulations shall prescribe areas of
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0008| specialty or expertise and may require that a certain part of
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0009| the thirty hours of classroom instruction be devoted to
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0010| courses in the area of a licensee's specialty or expertise;
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0011| and
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0012| B. the commission may approve and promulgate forms
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0013| to be used in real estate transactions, but the failure to use
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0014| an approved form does not affect the validity of the
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0015| transaction."
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0016| Section 2. Section 61-29-12 NMSA 1978 (being Laws 1959,
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0017| Chapter 226, Section 11, as amended) is amended to read:
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0018| "61-29-12. REFUSAL, SUSPENSION OR REVOCATION OF LICENSE
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0019| FOR CAUSES ENUMERATED.--The commission [shall have the power
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to] may refuse a license for cause or [to] suspend or
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0021| revoke a license at any time where the licensee has by false
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0022| or fraudulent representations obtained a license or where the
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0023| licensee in performing or attempting to perform any of the
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0024| actions mentioned in Chapter 61, Article 29 NMSA 1978 is
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0025| deemed to be guilty of:
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0001| A. making a substantial misrepresentation;
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0002| B. pursuing a continued and flagrant course of
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0003| misrepresentation; making false promises through agents,
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0004| salespersons, advertising or otherwise; or using any trade
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0005| name or insignia of membership in any real estate organization
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0006| of which the licensee is not a member;
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0007| C. paying or receiving any rebate, profit,
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0008| compensation, [or] commission or payment of any nature to
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0009| or from any unlicensed person, except [his] direct payment
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0010| to a principal [or other] party to the transaction [and
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then only with his principal's written consent] at or
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0012| subsequent to closing;
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0013| D. representing or attempting to represent a real
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0014| estate broker other than the broker with whom he is licensed
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0015| without the express knowledge and consent of the broker;
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0016| E. failing, within a reasonable time, to account
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0017| for or to remit any money coming into his possession that
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0018| belongs to others, commingling funds of others with his own or
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0019| failing to keep such funds of others in an escrow or trustee
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0020| account or failing to furnish legible copies of all listing
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0021| and sales contracts to all parties executing them;
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0022| F. conviction in any court of competent
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0023| jurisdiction of a felony or any offense involving moral
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0024| turpitude;
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0025| G. employing or compensating directly or
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0001| indirectly any person for performing any of the acts regulated
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0002| by Chapter 61, Article 29 NMSA 1978 who is not a licensed
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0003| broker or licensed salesperson; provided, however, that a
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0004| licensed broker may pay a commission to a licensed broker of
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0005| another state; provided further that the nonresident broker
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0006| does not conduct in this state any of the negotiations for
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0007| which [a fee] compensation, [or] commission or payment of
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0008| any nature is paid except [in cooperation with] through a
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0009| licensed broker of this state;
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0010| H. failing, if a broker, to place as soon after
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0011| receipt as is practicably possible any deposit money or other
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0012| money received by him in a real estate transaction in a
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0013| custodial, trust or escrow account maintained by him in a bank
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0014| or savings and loan institution or title company authorized to
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0015| do business in this state, in which the funds shall be kept
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0016| until the transaction is consummated or otherwise terminated,
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0017| at which time a full accounting of the funds shall be made by
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0018| the broker. Records relative to the deposit, maintenance and
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0019| withdrawal of such funds shall contain information as may be
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0020| prescribed by the rules and regulations of the commission.
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0021| Nothing in this subsection shall prohibit any broker from
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0022| depositing nontrust funds in an amount not to exceed the
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0023| required minimum balance in each trust account so as to meet
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0024| the minimum balance requirements of the bank necessary to
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0025| maintain the account and avoid charges. This minimum balance
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0001| deposit shall not be considered commingling and shall not be
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0002| subject to levy, attachment or garnishment. This subsection,
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0003| however, shall not prohibit a broker from depositing any
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0004| deposit money or other money received by him in a real estate
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0005| transaction with another cooperating broker who shall in turn
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0006| comply with this subsection;
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0007| I. failing, if a salesperson, to place as soon
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0008| after receipt as is practicably possible in the custody of his
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0009| registered broker any deposit money or other money entrusted
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0010| to him by any person dealing with him as the representative of
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0011| his registered broker;
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0012| J. violating any provisions of Chapter 61, Article
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0013| 29 NMSA 1978 or any reasonable rule or regulation promulgated
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0014| by the commission in the interests of the public and in
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0015| conformance with the provisions of Chapter 61, Article 29 NMSA
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0016| 1978; or
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0017| K. any other conduct, whether of the same or
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0018| different character from that specified in this section, that
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0019| is related to dealings as a real estate broker or real estate
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0020| salesperson and that constitutes or demonstrates bad faith,
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0021| incompetency, untrustworthiness, impropriety, fraud,
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0022| dishonesty, negligence or any unlawful act.
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0023| Any unlawful act or violation of any of the provisions of
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0024| Chapter 61, Article 29 NMSA 1978 by any real estate
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0025| salesperson, employee, partner or associate of a licensed real
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0001| estate broker shall not be cause for the revocation of a
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0002| license of any real estate broker unless it appears to the
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0003| satisfaction of the commission that the real estate broker had
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0004| guilty knowledge of the unlawful act or violation."
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0005|
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