Rhode Island SB 413: AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE BROKERS AND SALESPERSONS (Requires applicants to pass test to include topics on fair housing and requires 24 hours of continuing education.)

Bill Text

2021 -- S 0413 SUBSTITUTE A AS AMENDED 
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LC002155/SUB A 
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S T A T E     O F     R H O D E     I S L A N D 
IN GENERAL ASSEMBLY 
JANUARY SESSION, A.D. 2021 
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A N   A C T 
RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE BROKERS AND 
SALESPERSONS 
Introduced By: Senators Quezada, Calkin, Murray, Lawson, and Bell 
Date Introduced: February 25, 2021 
Referred To: Senate Judiciary 
 
 
It is enacted by the General Assembly as follows: 
SECTION 1. Sections 5-20.5-4, 5-20.5-6 and 5-20.5-14 of the General Laws in Chapter 5-1 
20.5 entitled "Real Estate Brokers and Salespersons" are hereby amended to read as follows: 2 
5-20.5-4. Examination   of   applicants -- Examination   fee -- Licensing   without 3 
examination. 4 
(a) The director shall require any applicant for a real estate broker's or salesperson's license 5 
to submit to and pass a written examination to show the applicant's knowledge of the state statutes 6 
and  the  rules  and  regulations  relating  to  real  property,  deeds,  mortgages,  leases,  contracts, and 7 
agency real estate relationships, and federal and state fair housing laws pertaining to fair housing 8 
and the treatment of any individual in a protected class as designated in chapter 37 of title 34. An 9 
applicant shall not be required to take the uniform portion of the Rhode Island real estate licensing 10 
examination if the applicant provides sufficient evidence that the applicant possesses an existing 11 
valid real estate license from a state that has similar statutes or regulations in effect which provide 12 
for reciprocal waiver of the  uniform portion of the  real estate  licensing examination for persons 13 
holding an existing valid Rhode Island real estate broker's or salesperson's license. An applicant for 14 
a real estate broker's or salesperson's license, prior to the taking of the examination, must pay an 15 
examination fee, the cost of which is limited to the charge as designated by the appropriate testing 16 
service's contract with the department of business regulation. 17 
(b) An applicant for a real estate salesperson's license must submit satisfactory evidence of 18 

 
 
 
LC002155/SUB A - Page 2 of 13 
completion  of  a  minimum  of  forty-five  (45)  classroom  hours  in  a  real  estate  course  given  by  a 1 
school as defined in § 5-20.5-19. The applicant for a broker's license must also submit satisfactory 2 
proof that he or she: (i) Has been engaged full time as a real estate salesperson for at least two (2) 3 
years  immediately  prior  to  the  date  of  application;  and  (ii)  Has  successfully  completed  at  least 4 
ninety (90) hours of approved classroom study in a school as defined in § 5-20.5-19, or equivalent 5 
in  a  correspondence  course  offered  by  an  extension  department  of  an  accredited  college  or 6 
university. The director, in his or her sole discretion, may require any additional evidence or proof 7 
as to the honesty, trustworthiness, integrity, good reputation, and competency of any applicant. 8 
(c) Any successful applicant who fails to remit the original license fee as provided in § 5-9 
20.5-11 within one year of the date of that examination may be required by the director to re-submit 10 
to and pass a written examination as provided in subsection (a) of this section. 11 
(d) When an attorney-at-law licensed by the supreme court of the state desires to have a 12 
real estate broker's license or a real estate salesperson's license, the attorney, by application, and 13 
upon payment of the applicable fee as provided in § 5-20.5-11, shall be granted a license without 14 
examination. 15 
(e) A certificate of licensure shall be issued by the real estate division of the department of 16 
business regulation within thirty (30) days after it is requested at a cost of not more than twenty-17 
five dollars ($25.00) for each certificate issued. 18 
5-20.5-6. Duration of licenses -- Rules and regulations -- Suspension or revocation of 19 
licenses Duration  and  renewal  of  licenses -- Continuing  education-rules  and  regulations -- 20 
Suspension or revocation of licenses. 21 
(a)  If  the  director  is  satisfied  that  the  applicant  is  competent  and  trustworthy  and  is 22 
reasonably  familiar  with  the  statutes  and  law  relating to  real  estate,  he  or  she  shall  issue  to  the 23 
applicant  a  license  to  act  as  a  real  estate  broker  or  a  real  estate  salesperson.  The  director  shall 24 
promulgate rules and regulations mandating the term of license for each category of license issued 25 
pursuant to this chapter. No license shall remain in force for a period in excess of three (3) years. 26 
Any fee for the initial issuance of a license or for renewal of a license issued pursuant to this chapter 27 
is determined by multiplying the current annual fee by the term of years of the license or renewal. 28 
The fee for the total number of years of the initial lic