Minnesota Session Laws - 1997, Regular Session

                            CHAPTER 73-S.F.No. 1094 
                  An act relating to real estate; regulating 
                  compensation paid by licensees to tenants for 
                  referrals; amending Minnesota Statutes 1996, section 
                  82.19, subdivision 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 82.19, 
        subdivision 3, is amended to read: 
           Subd. 3.  No real estate broker, salesperson, or closing 
        agents shall offer, pay, or give, and no person shall accept, 
        any compensation or other thing of value from any real estate 
        broker, salesperson, or closing agents by way of 
        commission-splitting, rebate, finder's fees, or otherwise, in 
        connection with any real estate or business opportunity 
        transaction; provided.  This subdivision does not apply to 
        transactions (1) between a licensed real estate broker or 
        salesperson and the person by whom the broker or salesperson is 
        engaged to purchase or sell real estate or business opportunity, 
        (2) among persons licensed as provided herein, (3) between a 
        licensed real estate broker or salesperson and persons from 
        other jurisdictions similarly licensed in that jurisdiction, and 
        (4) involving timeshare or other recreational lands where the 
        amount offered or paid does not exceed $150, and payment is not 
        conditioned upon any sale but is made merely for providing the 
        referral and the person paying the fee is bound by any 
        representations the person receiving the fee makes, and (5) 
        involving a person who receives a referral fee from a person or 
        an agent of a person licensed under this section, provided that 
        in any 12-month period, no recipient may earn more than the 
        value of one month's rent, that the recipient is a resident of 
        the property or has lived there within 60 days of the payment of 
        the fee, and that the person paying the fee is bound by any 
        representations made by the recipient of the fee.  A licensed 
        real estate broker or salesperson may assign or direct that 
        commissions or other compensation earned in connection with any 
        real estate or business opportunity transaction be paid to a 
        corporation of which the licensed real estate broker or 
        salesperson is the sole owner. 
           Presented to the governor April 28, 1997 
           Signed by the governor April 29, 1997, 2:34 p.m.