Real estate brokers and salesmen revisions.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0003

SENATE FILE
NO.
SF0056

Real estate brokers and salesmen revisions.

Sponsored by:
Senator(s) Johnson

A BILL

for

AN ACT relating to
real estate brokers and salesmen; making general revisions throughout the Real Estate License Act; amending and repealing provisions as required; providing requirements for a broker
'
s price opinion; providing definitions;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section
1
.

W.S.
33
‑
28
‑
101,
33
‑
28
‑
102
by creating a new
subsection
(b)
,
33
‑
28
‑
103(a)(iii) through (vi),
33
‑
28
‑
104, 33
‑
28
‑
105
(a),
(c)
(intro)
,
(v)
, (e)
and
(g), 33
‑
28
‑
106(a), (b),
(c)(intro)
,
(ii), (d), (e)(intro)
,
(i)
,
(viii)
(intro)
, (f)(intro)
,
(i), (iii)
,
(vi)
(intro)
, (g)
(i)
, (k) and by creating a new subsection (n),
33
‑
28
‑
107(b),
33
‑
28
‑
108,
33
‑
28
‑
109
(a) through (c)
, 33
‑
28
‑
110
(a), (b)(intro), (i), (iii), (iv), (d) and (f)
, 33
‑
28
‑
111
(a)
(intro), (v), (vi)(intro), (A), (ix), (xiii) through (xvii), (xix), (xxiii), (xxv) through (xvii), (xxix)(intro), (A) and (c)
, 33
‑
28
‑
114
(a)
, 33
‑
28
‑
115,
33
‑
28
‑
117,
33
‑
28
‑
118
(a) through
(e), 33
‑
28
‑
119, 33
‑
28
‑
121, 33
‑
28
‑
122,
33
‑
28
‑
123,
33
‑
28
‑
201(b), 33
‑
28
‑
202
(a), (c)
and
(d)
(intro)
, 33
‑
28
‑
204, 33
‑
28
‑
302
(a), (b), (c), (f), (h)
(intro), (i)
, (j), (k), (n), (p)
and
(q)
, 33
‑
28
‑
303(f)
and
(g)
,

33
‑
28
‑
305(b)(ii)(J)
and
33
‑
28
‑
306(a)
(intro)
are amended to read:

33
‑
28
‑
101.

Short title; license required.

This act shall be known and may be cited as the
"
Real Estate License Act
.
"

of 1971
"
. F
rom and after the effective date of this act

I
t is unlawful for any person to engage in or conduct, directly or indirectly, or to advertise or hold himself out as
engaging in
or conducting the business
,
real estate activity

or acting in the capacity of a
real estat
e
responsible

broker, associate broker or
a real estate

salesman within this state without first obtaining a license as
a broker, associate broker or salesman, as
provided in this act.

33
‑
28
‑
102.

Definitions.

(b)

As used in this act:

(i)

"
Active license
"
means a real estate license that has not been in
activated, suspended or revoked;

(ii)

"
Advance fee
"
means a fee claimed, charged or received for a listing, advertisement or offer to sell or lease property issued primarily for promoting t
he sale or lease of real estate;

(iii)

"
Aggregate limit
"
means a provision in an insurance contract limiting the maximum liability of an insurer for a series of losses in a given time
period, such as the policy term;

(iv)

"
Associate broker
"
means an individual who has qualified as a broker under this act but is licensed under, is associated with and represents a
real estate company
;

(v)

"
Branch of
fice
"
means any office of a responsible broker other than
his principal place of business;

(vi)

"
Broker
"
means any person licensed under this act including associate brokers and responsible brokers.
"
Broker
"
does no
t include a salesman;

(vi
i
)

"
Buyer
"
means a person attempting to acquire real property and includes a tenant as that term is commonly used in the rental, leasing
or management of real property;

(
viii
)

"
Buyer
'
s agent
"
means a licensee who is authorized to represent and act on behalf of the buy
er in a real estate transaction;

(
i
x
)

"
Commission
"
means
the
Wyoming

real estate commission;

(
x)

"
Compensation
"
means any money, item of value or payment which is provided, promised or expected for the performance of any
real estate activity
;

(x
i
)

"
Cooperative transaction
"
means any real estate transaction in which more than one (1) responsible broker participates, rega
rdless of agency representation;

(xi
i
)

"
Customer
"
means a party to a real estate transaction who has established no intermediary or agency relationship with any license
e involved in the transaction;

(xi
ii
)

"
Degree in real estate
"
means a degree from an accredited degree granting college or university, including a junior or community college, with a major course of study in real estate. A degree
under this section shall at minimum require the
successful completion of four (4) core courses of real estate principles and practices, real estate law, real estate appraisal and real estate finance, plus at least two (2) additional real estate related courses. These courses shall total at least eighteen (18) or more semester hours or twenty-seven (27) quarter hours;

(x
i
v
)

"
Designated
licensee
"
means a licensee who is designated in writing by a responsible broker to serve as an agent or intermediary for a seller or a buyer in a real
estate transaction;

(x
v)

"
Distance education course
"
means a course where instruction takes place when the teacher and the student are not in a traditional classroom setting and ar
e separated by distance or time;

(xv
i
)

"
Equivalent coverage
"
means insurance coverage obtained independently of the group program available
through the insurer under contract with
the commission and subjec
t to the provisions of this act;

(xvi
i
)

"
Errors and
omissions
insurance
"
means professional liability insurance
which
provides insurance coverage to
active
licensees
for errors and
omissions
made during the course of real estate transactions subject to the coverages, limitations and ex
clusions of the specific policy;

(x
viii
)

"
Expired license
"
means a license
for which
the license period has expired
;

(x
i
x)

"
Extended reporting period
"
means a designated period of time after a claims-made policy has expired during which a claim may be made and coverage obtained as if the claim wa
s made during the policy period;

(xx
)

"
Firm name
"
means the name of a licensed business, company, corporation, entity, partnership, sole proprietorship or other entity as recorded by the commission;

(xxi)

"
Funds holder
"
means a third party who holds items of value in trust for the parti
es to a real estate transaction;

(xxii)

"
Grace period
"
means Ja
nuary 1 to March 1 of each year;

(xxiii
)

"
Group program
"
means an insurance policy from an insu
rance provider selected by the c
ommission through the competitive p
rocess as specified in this act;

(xx
i
v)

"
Inactive license
"
means a license that
has been placed on inactive status at the request of the licensee and is not
expired, terminated, suspended or revoked
;

(xxv)

"
Individual coverage
"
means insurance coverage other than coverage from the group program which meets the
requirements of the commission;

(xxvi)

"
In-house real estate transaction
"
means a real estate transaction in which the buyer and the seller
have an agency or intermediary relationship with licensees from the same firm
;

(xxvi
i)

"
Interest in a transaction
"
means any advantage, benefit or profit, other than an agreed upon commission, which may be realized by a licensee as the result of a purchase, sale or lease of real property;

(xx
viii
)

"
Intermediary
"
means a licensee who assists one (1) or more parties throughout a contemplated real estate transaction
without
acting as an agent or advocate f
or any party to the transaction;

(xx
i
x
)

"
License
"
means the document issued by the commission certifying that the person named on the document had fulfilled all requiremen
ts for licensure under this act;

(xx
x)

"
Licensee
"
means any individual
or real estate company that holds a license
issued
by the commission
;

(xxx
i
)

"
Like-license
"
means a license from another jurisdiction which is at
an equivalent
level of exp
erience and responsibility as a comparable
Wyoming
license;

(xxxi
i
)

"
Material to the transaction
"
means having importance, relevance or consequence to a person making a decision
regarding real estate
.
"
M
aterial to the transaction
"
does not include psychological considerations including health issues or crimes whic
h have occurred on the property;

(xxxi
ii
)

"
Offer
"
means any inducement, solicitation or attempt to encourage a person to acquire an interest in real estate w
hich is made for gain or profit;

(xxx
i
v
)

"
Offeree
"
means a
person to whom an offer is made;

(xxxv)

"
Offeror
"
m
eans the person making an offer;

(xxxv
i
)

"
Office
"
means a broker
'
s place of business where records are maintain
ed;

(xxxvi
i
)

"
Opti
on
"
is a right that an owner may give to
another
to purchase or lease the owner
'
s property at a specific price;

(xxx
viii
)

"
Owner
"
means
a person with a right to convey an ownership or leasehold interest in real estate;

(
x
xxix
)

"
Person
"
means individuals,
corporations
, partnerships or ass
ociations, foreign
or
domestic;

(
xl
)

"
Prior acts coverage
"
means
insurance coverage for any
claim
made
during a current policy period when
the act or acts causing the claim or injuries for which the claim is made occurred prior to the inceptio
n of the current policy period;

(xl
i
)

"
Proof of coverage
"
me
ans a certificate of insurance;

(xli
i
)

"
Property manager
"
means a person who for compensation manages real estate, including collection of rents, maintenance
of
the property and accounting of fees received for
another;

(xli
ii
)

"
Qualified insurance carrier
"
means an insurance carrier that:

(A)

For the entire term of its contract shall provide the group plan of errors and omission insurance as provided in this act, maintains an A.M. Best rating of
"
B
"
or better and financial size
category of class VI or higher;

(B)

Is authorized by the
Wyoming

i
nsurance
d
epartment to do business in
Wyoming
as an insuran
ce carrier for the policy term;

(C)

Is and will remain qualified and authorized by the
Wyoming
insurance department to write policies of errors and omissions insurance in
Wyoming
for the policy term;

(D)

A
fter competitive bidding, has been notified by the commission that it is the successful bidder for the group plan to provide the errors and omissions insurance
as specified in this act;

(E)

H
as entered into a contract to provide group errors and omissions plan in conformity with
the
contract,
thi
s act, applicable rules of the c
ommission
and
other applicable law
;

(F)

W
ill col
lect premiums, maintain records
and report names of those insured and a record of claims to th
e commission on a timely basis;

(xl
i
v
)

"
Real estate
"
means leaseholds, as well as any other interest or estate in land, whether

corporeal, incorporeal, freehold or nonfreehold, and whether the real estate is situated in this

state or elsewhere but shall not apply to nor include
mineral lands, rights or leases;

(xl
v)

"
Real estate activity
"
occurs when an individual for another and for compensation:

(A)

Sells, exchanges, purchases, rents, manages or leases real estate;

(B)

Offers to sell, exchange, purchase, rent, manage or lease real estate;

(C)

Negotiates, offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or

leasing of real estate;

(D)

Lists, offers, attempts or agrees to list real estate for sale, lease or exchange;

(E)

Auctions, offers, attempts or agrees to auction real estate;

(F)

Collects, offers, attempts or agrees to collect rent for the use of real estate;

(G)

Advertises or holds himself out as being engaged in the business of buying, selling,

exchanging, renting or leasing real estate;

(H)

Engages in the business of charging an advance fee in connection with any contract
undertaken
to promote the sale or lease of real estate either through its listing in a publication

issued for that purpose or for referral of information concerning the real estate to brokers;

(J)

Buys, sells, offers to buy or sell or otherwise deals in options on real estate or improvements

thereon;

(K)

Assists or directs in the procuring of prospects calculated to result in the sale, exchange,

le
ase or rental of real estate;

(
M
)

Assists or directs in the negotiation of any transaction calculated or intended to result in the

sale, exchange, lease or rental of real estate;

(
N
)

Issues a b
roker
'
s price o
pinion;
or

(
O
)

Deals in time shares.

(xlv
i
)

"
Real estate company
"
means
a business entity including a
firm, co
mpany, corporation, partnership or sole proprietorship which is
licensed to conduct real estate activity
;

(xlvi
i
)

"
Real
estate transaction
"
or
"
transaction
"
means any
real estate activity
under this section
;

(xl
viii
)

"
Regular employee
"
means
a person
who is employed
by an owner of real estate
on a salaried basis
or paid wages
which are not performance based
,
is subject to i
ncome tax withholding and FICA and
whose duties are performed in the ordinary course of
the

owner
'
s
business or the management or
operation of
the owner
'
s
investments;

(
l
ix
)

"
Responsible broker
"
means
a person
who has a
n

active
broker
'
s license and who is responsible for the supervision of the activities of licensees

associated with the
real estate company
or a broker who operates a single license office;

(
l
)

"
Retroactive date
"
means the date when the first real estate errors and omissions coverage was effective insuring the named insured on a claims-made basis and since which time the insured
has been continuously insured;

(l
i
)

"
Salesman
"
means
an individual

who has qualified as a salesman under this act and is licensed under
and
represents a licensed real estate company
;

(li
i
)

"
Seller
"
means a person who is attempting to sell or exchange real property and includes
a landlord
as that term is commonly used in the rental, leasing
or management of real property;

(li
ii
)

"
Seller
'
s agent
"
means a licensee who is authorized to represent and act for the seller in a
real estate transaction;

(l
i
v
)

"
Short term rental
"
means the rental of real property f
or thirty-one (31) days or less;

(l
v)

"
Single-limit liability
"
means the maximum limit payable, per licensee, for damages arising out of the same error, omission
or wrongful act;

(lvi)

"
Subagent
"
means a licensee authorized to represent and act on
behalf
of a real estate company in performing real estate activity for a principal. A subagent shall owe the same obligations and responsibilities to the principal as a responsible broker;

(lv
ii
)

"
Surrendered license
"
means a license that has been voluntarily terminated or surrendered by a licensee who, at the time of the voluntary termination or surrender, was under investigation or named in a formal administrative c
omplaint
and the surrender has been accepted by the commission
;

(l
viii
)

"
Suspended license
"
means a license that has been temporarily sus
pended by the issuing authority;

(l
i
x
)

"
Time share
"
means any arrangement, whether by membership agreement, lease, rental

agreement, license, use agreement or other means, whereby the purchaser receives a right to use

or a freehold interest in accom
modations, facilities or
property for a specific period of
time during any given year,
but not necessari
ly for consecutive years,
and which extends for a

period of more than one (1) year;

(l
x
)

"
Transaction manager
"
means a licensee designated in writing by the responsible broker to

supervise a transaction. The transaction manager shall not be an agent in the transaction and

shall have the duties of an intermediary while supervising the transaction
;

(l
xi
)

"
W
ritten listing agreement
"
means any real estate employment agreement, including
without
limitation
a
buyer
'
s brokerage agreement,
a
seller
'
s listing contract and
a
property management contract. The authority created under a written listing agreement may not be assigned
to another person
without the written consent of all parties to the agreement
;

(lx
ii
)

"
This act
"
means W.S. 33
‑
28
‑
101 through 33
‑
28
‑
401.

33
‑
28
‑
103.

Exemptions.

(a)

The provisions of this act shall not apply to:

(iii)

Any individual acting as receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or of a trust instrument or as a witness in any judicial proceeding or other proceeding conducted by the state or any governmental subdivision or agency

unless that person is a licensee
;

(iv)

Any officer or employee of a federal agency in the conduct of his official duties
, unless that person is a licensee
;

(v)

Any officer or employee of the state government or any political subdivision thereof performing his official duties
, unless that person is a licensee
;

(vi)

Any person or employee acting as the resident manager for the owner or an employee acting as the resident manager for a broker managing an apartment building, duplex, apartment complex or court, when the resident manager resides on the premises and is engaged in the leasing of property in connection with his employment
, unless that person is a licensee
; or

33
‑
28
‑
104.

Acts constituting person
as
licensee
.

Any person who, for another, with the intention or upon the promise of receiving
any valuable consideration

compensation

offers, attempts or agrees to perform, or performs any single act
defined in W.S. 33
‑
28
‑
102(a)(iii)

of real estate activity
, whether as a part of a transaction or as the entire transaction shall be deemed to be acting as a
broker, associate broker or salesman

licensee

within the meaning of this act.

33
‑
28
‑
105.

Creation of commission; membership; terms; removal; chairman; powers and duties; director and duties thereof; other employees; compensation; disposition of fees.

(a)

The
Wyoming
real estate commission is created to consist of five (5) commissioners, each of whom shall be a citizen of
Wyoming
, appointed by the governor with the advice and consent of the senate. Not less than three (3) or more than four (4) of the membership shall have been engaged in business as
an
active salesperson or broker

a
licensee

in Wyoming for at least five (5) years immediately preceding appointment. No more than one (1) commissioner shall be appointed from the same county

to serve at the same time
. The term of the members of the commission shall be for three (3) years and until their successors are appointed and qualified. Members appointed to fill vacancies shall be appointed in accordance with W.S. 28
‑
12
‑
101, and no member shall be appointed to succeed himself for more than one (1) full term. The governor may remove any commission member as provided in W.S. 9
‑
1
‑
202. The commission at its first meeting held after September 1 of each year shall select a chairman to serve for the following year. The commission has the power to regulate the issuance of licenses, to revoke or suspend licenses issued under this act, to censure licensees and may do all things necessary and proper to carry out the provisions of this act. The commission may, from time to time, promulgate and amend necessary and reasonable rules and regulations for these purposes.
Effective July 1, 1979,

A
ppointments and terms shall be in accordance with W.S. 28
‑
12
‑
101 through 28
‑
12
‑
103.

(c)

The commission shall employ a director. The director is subject to the rules and regulations of the human resources division of the department of administration and information. The director
'
s salary shall be paid from the real estate
board

commission

account specified in subsection (g) of this section. The duties of the director shall include the following:

(v)

Assist the commission with examinations to be given applicants for real estate
broker and salesman
licenses, and to conduct the examinations at the direction of the commission;

(e)

Each member of the commission shall receive
as
compensation from the real estate
board

commission

account for each day actually spent on his official duties
including

per diem and mileage allowance as allowed
t
o
for
state employees and salary in the amount provided by W.S. 28
‑
5
‑
101(d) for the performance of official duties.

(g)

All fees collected by the commission shall be deposited in the state treasury. The state treasurer shall deposit the fees to the credit of the real estate
board

commission

account. Disbursements from the account shall not exceed the monies credited to it.

33
‑
28
‑
106.

Application for license; qualifications; sworn statement; commission approval of course of study; statement of broker; denial of license;
issuing
license
s
.

(a)

Any person desiring to act as a
real
estate broker, associate broker or real estate salesman

licensee
shall file an application for a license with the commission. The application shall be in the form and detail as the commission shall prescribe and the applicant shall provide to the commission fingerprints and other information necessary for a criminal history record background check as provided in W.S. 7
‑
19
‑
201(a).

(b)

Licenses shall be granted only to persons who bear a good reputation for honesty, trustworthiness, integrity and competence to transact the business of a
broker, associate broker or salesman

licensee

in a manner which will safeguard the interests of the public, and only after satisfactory proof of the applicant
'
s qualifications has been presented to the commission including a criminal history record background check as provided in W.S. 7
‑
19
‑
201(a).

(c)

Each applicant for a
responsible broker
'
s or associate

broker
'
s license shall:

(ii)

Have first served actively for two (2)
of the four (4)

years
immediately preceding the application

as a real estate salesman or shall furnish to the commission proof indicating that the applicant holds a degree in real estate from an accredited university or college; and

(d)

Every officer of a corporation acting as a
responsible

broker for the corporation and every member of
an association or partnership

a
real estate company

acting as a
responsible

broker for that
association or partnership

real estate company

who engages in the real estate business shall obtain a
responsible

broker
'
s license.

(e)

Every applicant for a
responsible broker
'
s or associate

broker
'
s license shall furnish a sworn statement setting forth:

(i)

The name of the
person, firm, partnership, association or corporation

real estate company

with which he will be associated in the business of real estate;

(viii)

Evidence that the applicant has completed not less than sixty (60)
cumulative

class hours in a course of study approved by the commission, given by instructors approved by the commission and has satisfactorily passed an examination covering material taught in each course.

The commission shall:

(f)

Each applicant for a salesman
'
s license shall have reached the age of majority. The application for a salesman
'
s license shall be accompanied by a written statement by the
responsible

broker in whose service the applicant is about to enter stating:

(i)

The name and place of business of the
responsible

broker
;
making the statement;

(iii)

The
responsible

broker will actively supervise and train the applicant during the period the requested license remains in effect;

(vi)

The applicant has completed not less than thirty (30) class hours in a course of study approved by the commission, given by instructors approved by the commission and has satisfactorily passed an examination covering material taught in each course.

The commission shall:

(g)

The commission may consider prior revocation, conduct or conviction in its determination of whether to grant the applicant a license if the applicant:

(i)

Has

been fined or disciplined or

had his real estate license revoked
,

on a prior occasion

suspended, censured or placed on probation in any jurisdiction
;

(k)

The commission shall issue
to each broker and to each salesman licensee a license and pocket card

licenses
in a form and size as the commission shall prescribe.

(n)

The commission shall:

(i
)

Approve courses that cover real estate principles, real estate law, real estate finance and related topics;

(ii
)

Promulgate rules and regulations to provide a process for challenging a course in lieu of evidence of completion of class hours;

(iii
)

Publish a list of approved real estate courses and keep the list updated annually;

(iv
)

On request, evaluate a specific course or courses which are not on the approved list and approve or disapprove the course.

33
‑
28
‑
107.

Examinations; salesmen
'
s and brokers
'
licenses.

(b)

No applicant shall engage in
th
e
real estate
business either as a broker or salesman

activity

until he has satisfactorily passed the examination, complied with the other requirements of this act and until a license has been issued to him.

33
‑
28
‑
108.

Fees.

Pursuant to W.S. 33
‑
1
‑
201, the commission shall establish fees for examinations, original licenses, renewals, certifications, change of place of business, transfers
,

and

duplicate licenses
.

and duplicate pocket cards
.
The fees shall be used to pay the expense of maintaining and operating the office of the commission and the enforcement of this act.

33
‑
28
‑
109.

Responsible b
roker to maintain fixed office; change of address; branch offices; restrictions on associate brokers and salesmen.

(a)

Each resident
licensed

responsible

broker shall maintain a fixed office within this state.
The original license as broker and the original license of each salesman associated with or under contract to the broker shall be prominently displayed in the office.

The address of the office shall be designated
in the broker
'
s license

on all licenses associated with the office

and no license issued under this act shall authorize the licensee to transact real estate
business

activity

at any other address except a licensed branch office. In case of removal from the designated address, the licensee shall make application to the commission before the removal
or within ten (10) days thereafter,

designating the new location of his office and paying the required fee, whereupon the commission shall issue a license for the new location for the unexpired period if the new location complies with the terms of this act.

(b)

If a
responsible

broker maintains more than one (1) place of business within the state
,
a branch office license shall be issued to the
responsible

broker for each branch office so maintained by him
.

and the branch office license shall be displayed conspicuously in each branch office.

Every branch office shall be under the direction and supervision of
a licensed

the responsible

broker. A
responsible

broker requesting a branch office license shall also, in addition to the branch office application, submit a plan of supervision for the branch office.

(c)

An associate broker or salesman shall not be associated or engaged under contract to any other
responsible

broker than is designated upon the license issued to the associate broker or salesman. Upon termination of an
associate broker
'
s or salesman
'
s
association or contractual relationship,
he shall surrender his pocket card to

his
responsible

broker
who shall return his license and pocket card to

shall immediately notify

the commission for cancellation

of the
associate broker
'
s or salesman
'
s
license
. Whenever a licensed associate broker or salesman desires to change his broker or contractual relationship from one
licensed

responsible

broker to another, he shall notify the commission promptly in writing of the facts attendant thereon and pay the required fee. The commission shall issue a new license
.

and pocket card
.
No associate broker or salesman shall directly or indirectly associate himself with a
responsible

broker until he has been issued a license to do so with that
responsible

broker.

33
‑
28
‑
110.

Unlawful to compensate unlicensed person; licensing of
like-licensed
nonresidents; service of process on nonresidents.

(a)

It is unlawful for any
licensed

responsible
broker to compensate any person who is not a licensed
responsible

broker, associate broker or salesman for performing any of the acts regulated by this act provided, however, that a
licensed

responsible

broker may pay a commission to a
licensed
broker of another state if the nonresident broker does not conduct
in this state any of the negotiations for which a commission

any real estate activity in this state for which compensation

is paid.

(b)

A nonresident may be issued a
nonresident

Wyoming

responsible

broker
'
s license if:

(i
)

The individual
is a licensed broker

holds a like-license
in his home state;

(iii)

The individual meets all the other requirements of this act

and rules and regulations of the commission
; and

(iv)

The individual
'
s home state has entered into a reciprocal agreement with the commission relating to the issuance of reciprocal licenses.

The broker furnishes the commission a statement under seal of the commission of his home state evidencing that he is an active licensed broker in good standing and has no complaints pending against him in his home state
.

(d)

A nonresident
salesman employed by or associated with a broker holding a nonresident broker
'
s license may be issued a nonresident salesman
'
s license under the nonresident broker if he submits to the commission a statement under the seal of the commission of the state in which he is licensed evidencing that he is an active licensed salesman

in good standing and with no complaints pending against him in his home state.

may be issued a
Wyoming
associate broker or salesman license if:

(i)

The individual holds a like-license in his home state;

(ii)

The individual is actively engaged in the real estate business in his home state;

(iii)

The individual meets all the other requirements of this act and
rules and regulations of the commission
;
and

(iv)

The
individual
furnishes the commission a statement under seal of the commission of his home state evidencing that he
holds an active license
in good standing and has no complaints pending against him in his home state
.

(f)

Prior to being issued a license, every nonresident
broker

licensee

shall file with the commission a designation in writing which appoints the director of the commission to act as his licensed agent upon whom all judicial and other process or legal notices directed to the licensee may be served. Service upon the agent so designated shall be equivalent to personal service upon the licensee. Copies of the appointment, certified by the director of the commission, shall be received in evidence in any proceeding and shall be given the same force and effect as the original. In the written designation the licensee shall agree that any lawful process against the licensee which is served upon his appointed agent shall be of the same legal force and validity as if served upon the licensee, and that the authority of the agent shall continue in force so long as any liability of the licensee remains outstanding in this state. Upon the receipt of any process or notice, the director shall mail a copy of the same by certified mail, return receipt requested, to the last known business address of the licensee.

33
‑
28
‑
111.

Censure of licensee and suspension or revocation of license; grounds.

(a)

The commission shall upon a written sworn complaint or may upon its own motion
investigate the actions of any

broker, associate broker or salesman
,
person conducting real estate activity regarding real property located in Wyoming,

impose an administrative fine not to exceed two thousand five hundred dollars ($2,500.00) for each separate offense and may censure
the

a

licensee, place
the

a

licensee on probation and set the terms of probation, suspend or revoke any license issued under this act
and impose an administrative fin
e
for any of the following:

(v)

Negotiating a sale, exchange or lease of real estate

Conducting real estate activity

directly with an owner or lessor if the licensee knows the owner has
a

written outstanding contract

an outstanding written agreement

in connection with the property
granting an exclusive right to sell to

with

another
responsible

broker;

(vi)

Intentionally

U
sing advertising which:

(A)

Is misleading or is inaccurate in any
material

matter

material to the transaction
; or

(ix)

If a
responsible

broker, failing to supervise the activities of hi
s associate broker or salesman;

(xiii)

Failing to submit all offers in writing to a seller
, if received prior to the written acceptance of any offer

or buyer
;

(xiv)

Commingling the money or other property
of
the licensee
'
s principals

others

with his own;

(xv)

Accepting, giving or charging an undisclosed commission, rebate or direct
or indirect
profit on expenditures made for
a principal

others
;

(xvi)

Engaging in
real estate

activity as an associate broker or salesman involving the representing or attempt to represent a
real estate

responsible

broker other than his
licensed

responsible

broker;

(xvii)

Accepting
a commission

compensation

or other valuable consideration by an associate broker or salesman from anyone other than his
employing

responsible
broker;

(xix)

Guaranteeing or authorizing any person to guarantee future profits which may result from the resale of real
property

estate
;

(xxiii)

Compensating any unlicensed person for performing
the services of a broker, associate broker or salesman

real estate activity
;

(xxv)

Failing to account for any monies or property
entrusted to licensee

received from others
;

(xxvi)

Failing to keep the funds of others in an escrow or trust account
, unless each person
with
an interest in the funds has agreed otherwise in writing
;

(xxvii)

Failing to deposit all financial instruments in an escrow or
trustee

trust

account within one (1) banking day in a financial institution in this state
, unless each person
with
an interest in the funds has agreed otherwise in writing
;

(xxix)

If a
responsible

broker
:

(A)

Failing to deliver to the
seller

parties

in every real estate transaction at the time the transaction is closed a complete, detailed closing statement showing all of the receipts and disbursements handled by the
broker

licensee
and each licensee in his office

for the
seller

parties

unless a clear and accurate accounting is furnished by
an escrow

another broker or a closing

agent
;

(c)

All administrative fines collected under this section shall be
applied for the costs of hearing officers, court reporters, expert
witnesses
, other
witnesses
, travel and per diem expenses for commissioners and staff, facility rent and other costs incurred by the commission pursuant to this act. Any fines which have not been expended under this subsection at the end of each fiscal year shall be

paid to the state treasurer to be credited to the public school fund of the county in which the violation occurred.

33
‑
28
‑
114.

Conducting business without license prohibited; penalties; civil liability.

(a)

Any person
acting as a broker, associate broker or salesman

performing real estate activity

without first obtaining a license is guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than
one thousand dollars ($1,000.00
)
five thousand dollars ($5,000.00)

or by imprisonment in the county jail for a term not to exceed six (6) months. Upon conviction of a subsequent violation the person shall be punished by a fine of not more than
one thousand dollars ($1,000.00)

five thousand dollars ($5,000.00)

or by imprisonment in the county jail for a term not to exceed one (1) year or both. If a corporation is convicted it shall be punished by a fine of not more than five thousand dollars ($5,000.00).

33
‑
28
‑
115.

Unlicensed person may not maintain action for fee.

No action or suit shall be instituted, nor recovery be had, in any court of this state by any person for compensation for any
act done or service rendered, which is prohibited under this act to other than licensed brokers, licensed associate brokers or licensed salesmen

real estate activity

unless the person was licensed under this act at the time of
offering to perform any act or service or procuring any promise to contract for the payment of compensation for any contemplated act or service

engaging in real estate activity
.

33
‑
28
‑
117.

Directory of licensees.

The commission shall
annually publish

maintain and make publicly available

a directory of licensees, including a list of licenses suspended and revoked which shall contain other data as the commission may determine to be in the interest of real estate licensees and the public.

The lists shall be distributed to all licensed brokers without charge.

33
‑
28
‑
118.

License renewals; continuing education; payment of fees; effect of failure to renew; inactive status.

(a)

Licenses issued under this act may be renewed for successive three (3) year periods.
Application for renewal of any license issued prior to this act shall be made before December 31, 1983. Thereafter the application shall be made before December 31 of the third year of the license period
.
The commission may establish a grace period for license renewal not to exceed sixty (60) days. The commission may establish a late fee for license renewal not to exceed seventy-five dollars ($75.00).

(b)

Effective December 31, 1983,

T
he commission may adopt rules and regulations providing for mandatory continuing education allocable over each three (3) year period not to exceed sixty (60) hours.

(c)

Failure to
remit

timely submit a complete renewal application including proof of required continuing education and

renewal fees when due shall automatically
cance
l
cause

a license
, but otherwise the license shall remain in full force and effect continuously from the date of issuance, unless suspended or revoked by the commission for just cause

to expire
. Presentation of a check to the commission as a fee for either an original or renewal license or for examination for license, which is returned to the state treasurer unpaid, is cause for revocation or denial of license unless it is established that the dishonor of the check was not the fault of the applicant or licensee.

(d)

Any licensee whose license has
been cancelled for failure to renew

expired

as provided in this section
after the grace period has ended,

shall comply with all requirements of a new applicant, including writing the appropriate examination, before a license will be reissued.

(e)

Any real estate associate broker or salesman who is not employed by or associated with a
responsible

broker, or any
responsible

broker who desires to become inactive may renew his license in an inactive status prior to the renewal deadline established in this section, by submitting the renewal fee together with a completed renewal application on which he has noted his present inactive status.

33
‑
28
‑
119.

Advertising; licensing under one name; trade names; advertisement of associate brokers and salesmen.

(a)

Every real estate
broker

licensee
, when advertising or promoting his real estate brokerage business, shall use the
firm

name under which he is licensed and shall use no slogans or phraseology in a manner which would indicate or suggest to the public that real property may be listed or is being offered for sale, exchange, lease or rent by a private party not licensed by the commission.

(b)

No real estate
broker

licensee
licensed under this act shall insert in any publication an advertisement which lists only a post office box number, telephone number or street address

without including the firm name
.

(c)

No person, corporation, partnership or association, domestic or foreign, shall act or advertise as a
real estate

responsible broker, associate

broker or salesman in this state by use of letterheads, billboards, radio or television announcements or any other media of advertising, without first obtaining a
real estate

responsible brokers
'
, associate

broker
'
s or salesman
'
s license from the commission.

(d)

Except as provided in subsection (e) of this section, no person shall be licensed as a
real estate

responsible broker, associate

broker or a real estate salesman under more than one (1)
firm

name, and no person shall conduct or promote a real estate brokerage business except under the
firm

name under which the person or brokerage business is licensed.

(e)

A trade name, with the permission of the owner of the trade name, may be used concurrently with the licensed name of the
broke
r
real estate company

in the promotion or conduct of the
licensed

responsible

broker
'
s business. The
broker
'
s
licensed

firm

name shall be displayed in a conspicuous manner that may be readily identified by the general public.

(f)

A
licensed

responsible

broker shall not advertise the sale, purchase, exchange or lease of property, whether owned by him or not, without including in the advertisement the
firm

name under which he is licensed.

(g)

A licensed associate broker or salesman shall not advertise the sale, purchase, exchange or lease of property, whether owned by him or not, without including in the advertisement the name of the
responsible

broker
or
firm name

with whom he is associated and licensed and the name under which he is licensed.

(h)

A licensee shall not advertise the sale, purchase, exchange or lease of property owned by the licensee unless the advertisement includes the fact that an owner of the property is a real estate licensee.

(j)

If a licensee uses his individual name in advertising, the first and last name shall be included. A common shortened spelling of the first name of the licensee is permitted. The use of a nickname is permitted if the name is reflected on the license.

33
‑
28
‑
121.

Temporary licenses to complete affairs of deceased brokers.

In the event of the death of a licensed
responsible

broker who is the sole proprietor of a real estate
business

company
, upon application by his personal representative, the director shall issue, without examination and for a specified period of time, a temporary license to the personal representative, or to a licensed individual designated by him and approved by the director. The license shall authorize the holder of the temporary license to continue to transact business for the sole purpose of completing the affairs of the deceased
responsible

broker.

33
‑
28
‑
122.

Responsible
b
roker
'
s trust accounts; disposition of interest; commingling with personal funds prohibited; disputed deposits; cooperative transactions.

(a)

Every
responsible

broker licensed in this state shall:

(i)

Maintain a separate account in a financial institution in this state designated as a trust
or escrow

account in which all down payments, earnest money deposits, advance listing fees or other trust funds received by him, his associate brokers or his salesmen on behalf of a principal or any other person shall be deposited unless all persons having an interest in the funds have agreed otherwise in writing. The account shall permit immediate withdrawal of the funds deposited therein
.
In lieu of maintaining a trust or escrow account under this paragraph, a responsible broker may use a funds holder
;

(ii)

Notify the real estate commission on forms it prescribes of the name of the financial institution in which a trust account is maintained and the name of the account. If the
responsible

broker uses a
closing agent

funds holder

and deposits monies with
this agent

the funds holder
, his intention to use a
closing agen
t
funds holder and the fund holder
'
s name

shall be disclosed to all parties to any contract, purchase agreement, lease or lease agreement negotiated by him. The
responsible

broker shall
identify all funds holders used by the broker and

notify the real estate commission in writing that he uses
a closing agent

and deposits monies with the
agent

funds holder
;

(iii)

Permit the commission or its representative to examine the
responsible broker
'
s

trust
account

accounting
records;

(iv)

Upon cancellation of his license for any reason, maintain the
escrow

trust
account until all deposits have been properly disbursed.

(b)

If a
responsible

broker
'
s branch office maintains a separate trust account, the office shall maintain a separate bookkeeping system.

(c)

A trust account maintained by a
responsible

broker under this section may be interest bearing or noninterest bearing. Any interest accrued on any deposit in a trust account shall be paid out as agreed in writing by all persons having an interest in the deposit. In the absence of a written agreement among all persons having an interest in the deposit, at the time all or any portion of any deposit is withdrawn and paid out, all interest accrued upon the funds withdrawn and paid out shall also be withdrawn and paid out to the person from whom the trust funds were received; provided, if the funds are required to be disbursed to more than one (1) person, each person entitled to receive any portion of the deposit shall also be paid a portion of the interest in the same proportion as the funds withdrawn and paid out to each person bears to the total deposit.

(d)

A
broker

licensee

is not entitled to any part of the earnest money or other
money paid

item of value given
to him in connection with any real estate transaction as part or all of his commission or fee until the transaction has been consummated or terminated.

(e)

No
responsible

broker shall permit an advance payment of funds belonging to others to be deposited in the
responsible

broker
'
s personal account or be commingled with his personal funds. It will not be considered commingling if, when establishing the trust account, the
responsible
broker deposits some of his funds to keep the account open or to avoid charges for a minimum balance, so long as that deposit is identified at the time of deposit. No
responsible

broker shall use deposits in a trust account for a purpose other than the transaction for which they were provided.

(f)

In the event of a dispute over the return or forfeiture of any deposit held by the
listing

responsible
broker, the
listing

responsible

broker may continue to hold the deposit in
his

a

trust account until he has a written release from the parties consenting to this disposition or until a civil action is filed, at which time it may be paid to the court.

(g)

Unless otherwise agreed by all parties to the contract, i
n a cooperative transaction, in which
one (1)

the

responsible

broker
holds an exclusive right to sell or an exclusive agency on a property and the selling broker

working with a buyer

receives cash or a check as earnest money
,

or according to a contract,

the
selling

responsible
broker shall deliver the contract and the earnest money to the
listing

responsible

broker
working with the seller

who shall deposit the cash or check in his trust account. If the
sellin
g
broker
working with a buyer

receives a promissory note, or thing of value, the note or thing of value shall be delivered with the contract to the
listing
broker
working with the seller

to be held by
the

listing

broker
.

33
‑
28
‑
123.

Retention of records.

Every
responsible
broker licensed in this state shall keep and maintain a full set of records of every real estate transaction in which he participates on behalf of
or to assist

any party to the transaction. The records shall be maintained not less than seven (7) years from the latest date on which the
responsible
broker participated in the transaction.

33
‑
28
‑
201.

Real estate recovery account created; funding of account; no liability of state.

(b)

Beginning January 1, 1984,

E
very person obtaining or renewing a
real estate
broker
'
s, associate broker
'
s or salesman
'
s

license shall pay an additional fee of twenty dollars ($20.00) which shall be deposited in the real estate recovery fund account. When the balance of the real estate recovery fund account reaches twenty thousand dollars ($20,000.00) one
-
half (1/2) of the fee shall be deposited in the real estate recovery fund account and one
‑
half (1/2) of the fee shall be deposited in the educational fund account. When the real estate recovery fund account balance reaches fifty thousand dollars ($50,000.00) all fees shall be deposited in the education fund account.

33
‑
28
‑
202.

Real estate recovery account created; payments; pro rata distribution when account insufficient; service of process; joinder of account.

(a)

If any person obtains a final judgment in any court of competent jurisdiction against any
real estate broker or real estate salesman licensed under this act

licensee

on the grounds of fraud, willful misrepresentation, deceit or conversion of trust funds arising directly out of any transaction
occurring after December 31, 1983

which occurred when the
broker, associate broker or salesman

licensee

was licensed and in which the
broker, associate broker or salesman performed acts for which a real estate license is required

licensee preformed real estate activity
, that person, within one (1) year of termination of all proceedings, including appeals, may file with the commission a verified petition in the court in which the judgment was entered for an order directing payment out of the real estate recovery account in the amount of actual damages included in the judgment and unpaid, and that a writ of execution has been returned unsatisfied, but for not more than
four thousand dollars ($4,000.00)

ten thousand dollars ($10,000.00)
.

(c)

Any
real
estate broker, associate broker or real estate salesman who is licensed or renews his license under W.S. 33
‑
28
‑
108 after December 31, 1983, and

licensee

upon whom personal service cannot be made with reasonable diligence shall be deemed to have appointed the director of the commission as his agent for service of process for purposes of actions filed against him pursuant to subsection (a) of this section. Service of process pursuant to subsection (b) of this section shall be made under the Wyoming Rules of Civil Procedure.

(d)

In lieu of the petition under subsection (a) of this section for an order directing payment out of the real estate recovery account, a person filing an action against a
licensed
real estate
broker, associate broker or salesman
licensee

of a type described in subsection (a) of this section may join the real estate recovery account as a limited third party defendant and have judgment rendered directly against the account in the amount provided in subsection (a) of this section provided:

33
‑
28
‑
204.

Suspension
of licenses following payment from account; reinstatement.

If the commission is required to make any payment from the real estate recovery account in settlement of a claim or toward the satisfaction of a judgment, the commission shall immediately suspend the judgment debtor
'
s license. The judgment debtor shall not be licensed
as either a broker, associate broker or salesman

or have his license reinstated until he has repaid in full the amount paid from the real estate recovery account with interest thereon of eighteen percent (18%) per annum.
Repayment under this section shall not prohibit the commission from acting in accordance with W.S. 33
‑
28
‑
111.

A discharge in bankruptcy shall not relieve a person from the disabilities and penalties of the section.

33
‑
28
‑
302.

Relationships between licensees and the public.

(a)

A
responsible

broker shall not be required to offer or engage in more than one (1) of the brokerage relationships. When engaged in any
of the activities enumerated in W.S. 33
‑
28
‑
102(a)(iii
)

real estate activity
, a licensee
, with permission of his responsible broker,
may act in any real estate transaction as an agent or intermediary or may work with the seller or buyer as a customer. The licensee
'
s duties and obligations arising from that relationship shall be disclosed to the seller or buyer pursuant to this article.

(b)

When engaged in any
of the activities enumerated in W.S. 33
‑
28
‑
102(a)(iii)

real estate activity
, a licensee may act as an agent only pursuant to a written agreement with the seller or buyer which discloses the duties and responsibilities set forth in W.S. 33
‑
28
‑
303 or 33
‑
28
‑
304.

(c)

When engaged in any
of the activities enumerated in W.S. 33
‑
28
‑
102(a)(iii)

real estate activity
, a licensee may act as a subagent with the duties and responsibilities set forth in W.S. 33
‑
28
‑
303(g)
,
only pursuant to a written agreement between the seller and the seller
'
s agent authorizing an offer of subagency to other
responsible

brokers, or as an intermediary with the seller or buyer, which written agreement discloses the duties and responsibilities set forth in W.S. 33
‑
28
‑
305.

(f)

A licensee may complete real estate forms and shall explain to the parties the effects thereof if the licensee is performing
the activities enumerated or referred to in W.S. 33
‑
28
‑
102(a)(iii
)
real estate activities

in the transaction in which the forms are to be used.

(h)

If a real estate
brokerage firm

company

has more than one (1) licensee, the responsible broker and any licensee associated with or engaged by that responsible broker may be designated to work with the seller or the buyer as a designated
agent

licensee
. For an in-house real estate transaction, the designated
agent

licensee

shall be:

(i)

A
responsible

broker;

(j)

Licensees employed or engaged by the same responsible broker may be designated
agents

licensees

for different buyers or sellers in the same transaction. If the responsible broker is representing a buyer or a seller in an in-house transaction, the responsible broker shall immediately appoint a transaction manager. The simultaneous designations shall not constitute dual agency or require the responsible broker or licensee to act as an intermediary unless otherwise required by this article. A responsible broker or transaction manager shall have access to all necessary information but shall be prohibited from sharing any confidential information of any party to the transaction that the
responsible

broker or
transaction

manager may learn in the process of supervising the licensees or the transaction.

(k)

A licensee may work as an agent for the seller treating the buyer as a customer or as an agent for the buyer treating the seller as a customer but not as an agent for both the seller and the buyer. A licensee may be designated to work as an intermediary for both the seller and the buyer in the same transaction

pursuant to W.S. 33
‑
28
‑
307
. The applicable designated relationship shall be disclosed in writing to the seller and buyer at the earliest reasonable opportunity. A designated
agen
t
licensee
is not precluded from working with a buyer or seller in a real estate transaction solely because the
agent

licensee
was precluded from representing that person in an earlier separate real estate transaction.

(n)

Nothing in this section shall be construed to limit the responsible broker
'
s responsibility to supervise licensees associated with the
responsible

broker or
firm

real estate company

or to shield the
responsible

broker from vicarious liability.

(p)

A customer relationship shall exist between a licensee and any party to a real estate transaction unless a single agency or intermediary relationship is established through a written agreement between the licensee and the party or parties. When a buyer or seller
is represented by another

has a written listing agreement with a

licensee,
a

another

licensee may work with the other buyer or seller as a customer, having no written agreement, agency or intermediary relationship with
either

any

party. A licensee shall not owe any duty of confidentiality to a customer.

(q)

Proprietary ownership interest of
listings

written listing agreements

shall be vested in the responsible broker.

33
‑
28
‑
303.

Seller
'
s agent engaged by seller.

(f)

A seller may agree in writing with a seller
'
s agent to extend an offer of subagency to other
responsible
brokers
to cooperate in selling the property.

(g)

Any
responsible

broker acting as a subagent on the seller
'
s behalf shall have the obligations and responsibilities set forth in subsections (a) through (e) of this section.

33
‑
28
‑
305.

Intermediary.

(b)

A licensee engaged as an intermediary shall owe to each party with whom the intermediary has contracted the following duties and obligations:

(ii)

To exercise reasonable skill and care as an intermediary, including:

(J)

Disclosing to any prospective seller all adverse material facts actually known by the intermediary, including but not limited to adverse material facts pertaining to the buyer
'
s financial ability to perform the terms of the transaction
;

and the buyer
'
s intent to occupy the property as a principal residence
;
and

33
‑
28
‑
306.

Relationship disclosures.

(a)

For purposes of this section, open house showings, preliminary conversations and requests for factual information do not constitute discussions or arrangements incidental to a sale, purchase, exchange or lease. Prior to engaging in any discussion or arrangement incidental to a sale, purchase, exchange or lease
,

option,

and
,
prior to entering into any written agreement
,
with a buyer or seller, a licensee shall make a written disclosure of applicable agency, intermediary or customer relationships which shall contain at a minimum the following:

Section
2
.

W.S.
33
‑
28
‑
102(a),
33
‑
28
‑
106(e)(viii)(A) through (D) and (f)(vi)(A) through (D),
33
‑
28
‑
110(c)
, (g), (h)
and (j)
, 33
‑
28
‑
111(a)(xxix)(B), 33
‑
28
‑
305(f)(iv)

and 33
‑
28
‑
401(f) are
repealed.

Section
3
.

This act is effective July 1, 2011
.

(END)

1
SF0056