SF 1777

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to real estate; regulating compensation paid 
  1.3             by licensees to tenants for referrals; amending 
  1.4             Minnesota Statutes 1994, section 82.19, subdivision 3. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 82.19, 
  1.7   subdivision 3, is amended to read: 
  1.8      Subd. 3.  No real estate broker, salesperson, or closing 
  1.9   agents shall offer, pay, or give, and no person shall accept, 
  1.10  any compensation or other thing of value from any real estate 
  1.11  broker, salesperson, or closing agents by way of 
  1.12  commission-splitting, rebate, finder's fees, or otherwise, in 
  1.13  connection with any real estate or business opportunity 
  1.14  transaction; provided.  This subdivision does not apply to 
  1.15  transactions (1) between a licensed real estate broker or 
  1.16  salesperson and the person by whom the broker or salesperson is 
  1.17  engaged to purchase or sell real estate or business opportunity, 
  1.18  (2) among persons licensed as provided herein, (3) between a 
  1.19  licensed real estate broker or salesperson and persons from 
  1.20  other jurisdictions similarly licensed in that jurisdiction, and 
  1.21  (4) involving timeshare or other recreational lands where the 
  1.22  amount offered or paid does not exceed $150, and payment is not 
  1.23  conditioned upon any sale but is made merely for providing the 
  1.24  referral and the person paying the fee is bound by any 
  1.25  representations the person receiving the fee makes., and (5) 
  2.1   involving no more than three referral fees or other 
  2.2   considerations in any 12-month period each not exceeding the 
  2.3   value of rent for one month for the referral of a residential 
  2.4   tenant paid by the owner or manager of a residential property, 
  2.5   or an employee, to a person who is a current or past resident of 
  2.6   that property, and who is not in the business of making these 
  2.7   referrals.  A licensed real estate broker or salesperson may 
  2.8   assign or direct that commissions or other compensation earned 
  2.9   in connection with any real estate or business opportunity 
  2.10  transaction be paid to a corporation of which the licensed real 
  2.11  estate broker or salesperson is the sole owner.