Two bills supported by the REALTOR® Political Action Committee at the General Assembly this year will become effective on July 1, 2016.

House Bill 684 pertains to the Condominium and Property Owners’ Association Acts and makes the following changes regarding the rental of a privately owned unit: First, associations can no longer prohibit the owner of a unit from renting it or evict the owner’s tenant; Second, associations may not charge any fees in excess of $50 or charge any kind of deposit, security or otherwise; And third, requires the association to recognize the owner authorized agent without needing the power of attorney, as long as the agent is licensed by the Real Estate Board.

In addition, the bill conforms the Property Owners’ Association Act and the Condominium Owners’ Association Acts as they relate to the provision of electronic disclosure documents and the charges associated to those documents. Finally, HB 684 sets out specific definitions of delivery, receipt of delivery, and authorized agent in order to eliminate any confusion regarding the disclosure packet delivery.

The second piece of legislation, House Bill 567, deals with the Real Estate Board and agency law. First and foremost, this bill authorizes the Real Estate Board to grant exemptions, waive, or reduce the number of continuing education classes in cases of certified illness or undue hardship. As it relates to the agency statute, the bill clarifies that a written brokerage agreement is not required before showing a residential property to potential buyers or tenants, but must be signed before conversations of substance regarding a property take place. On the commercial side, it removes the brokerage disclosure requirement entirely.

Both of these laws take effect on July 1 of this year, so please be aware of how they affect you and your business. Should you have any questions, please do not hesitate to contact Jo Gehlbach at jgehlbach@RARealtors.com.