Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 461-H.F.No. 2139 
                  An act relating to real estate; regulating trust 
                  accounts; clarifying a definition for purposes of 
                  licensing real estate appraisers; regulating dual 
                  agency disclosure; amending Minnesota Statutes 1992, 
                  section 82B.02, by adding a subdivision; Minnesota 
                  Statutes 1993 Supplement, sections 82.197, subdivision 
                  3; and 82.24, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        82.197, subdivision 3, is amended to read: 
           Subd. 3.  [SCOPE AND EFFECT.] The requirements for 
        disclosure of agency relationships set forth in this chapter are 
        intended only to establish a minimum standard for regulatory 
        purposes, and are not intended to abrogate common 
        law. Disclosures made in accordance with the requirements for 
        disclosure of agency relationships set forth in this chapter are 
        sufficient to satisfy common law disclosure requirements.  In 
        addition, when a principal in the transaction is a licensee or a 
        relative or business associate of the licensee, that fact must 
        be disclosed in writing in addition to any other required 
        disclosures.  The commissioner, in consultation with 
        representatives of the real estate industry, consumer groups, 
        the attorney general's office, and any other group deemed 
        appropriate by the commissioner, shall study current required 
        disclosure forms and recommend any additions that may be 
        necessary to ensure that consumers are informed of the various 
        agency relations and how they affect the consumer.  The 
        commissioner shall prepare legislation for the 1995 session 
        which incorporates those recommendations. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 82.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERALLY.] (a) All trust funds received 
        by a broker or the broker's salespeople or closing agents shall 
        be deposited forthwith upon receipt in a trust account, 
        maintained by the broker for such purpose in a bank, savings and 
        loan association, credit union, or an industrial loan and thrift 
        company with deposit liabilities designated by the broker or 
        closing agent, except as such money may be paid to one of the 
        parties pursuant to express written agreement between the 
        parties to a transaction.  The depository bank shall be a 
        Minnesota bank or trust company or any foreign bank and shall 
        authorize the commissioner to examine its records of such 
        deposits upon demand by the commissioner.  The industrial loan 
        and thrift company shall be organized under chapter 53.  The 
        savings and loan association or credit union shall be organized 
        under the laws of any state or the United States. 
           (b) All trust accounts opened or maintained pursuant to 
        requirements of paragraph (a) must be established through the 
        use of an employer identification number.  Any trust account 
        currently identified with a broker's personal social security 
        number must be changed to reflect the broker's employer's 
        identification number rather than the broker's personal social 
        security number. 
           Sec. 3.  Minnesota Statutes 1992, section 82B.02, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [RESIDENTIAL REAL PROPERTY OR RESIDENTIAL REAL 
        ESTATE.] "Residential real property" or "residential real estate"
        means property occupied by, or intended to be occupied by, one 
        to four families as their residence. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor April 14, 1994 
           Signed by the governor April 18, 1994, 3:14 p.m.