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Guam Legislature advances bill requiring written brokerage agreements in real estate transactions
Summary
The Legislature moved Bill 77‑38 COR to the third‑reading file after sponsors said the measure would require written brokerage agreements for all licensed real‑estate brokers and salespeople, aiming to increase transparency and consumer protection.
Senator Tariqiu on the floor moved to place Bill 77‑38 COR, which would add a new section to Guam law to require that all real‑estate brokerage agreements be in writing, onto the third‑reading file. The bill’s author said the measure requires a written agreement executed before the start of brokerage services and that the agreement must state essential terms such as start and end dates, compensation arrangements and cancellation provisions.
The bill’s sponsor said the proposal aligns Guam with practices in more than 25 U.S. jurisdictions and noted industry testimony supporting the change. "This bill strengthens fairness, transparency, consumer protection in Guam's real estate industry by requiring that all brokerage agreements be in writing," Senator Tariqiu said on the floor. The sponsor also cited testimony delivered by Mr. Chris Felix of Century 21 and written testimony from the Department of Revenue and Taxation director Maria Lazama in support of the measure.
Why it matters: Supporters said written agreements reduce disputes and put consumers and licensees on the same page for high‑value transactions. The author and backers described the change as a consumer protection step that clarifies duties and pay for sellers, buyers, lessors and lessees who use licensed brokers or salespeople.
Supporters and details: According to the author’s presentation, the bill would: - Require that buyer‑ and seller‑brokerage agreements be in writing and executed before brokerage services begin; - Require disclosure of essential terms, including duration of the agreement, compensation, conflict‑of‑interest disclosures and termination clauses; - Apply to all licensed brokers and salespersons regardless of association membership.
The author noted that U.S. antitrust litigation concerning the practices of the National Association of Realtors has encouraged jurisdictions to adopt written‑agreement requirements; in floor remarks a senator (speaking from a telephone connection) referenced a class‑action settlement involving the National Association of Realtors and related federal enforcement activity.
What happened: The senator moved to place the bill on the third‑reading file; there were no objections and the motion carried. Placing a bill on the third‑reading file is a procedural step toward final floor consideration but is not passage of the law.
Next steps: With the bill on the third‑reading file, the Legislature may take a final vote at third reading or further amend the measure before final passage. Testimony from industry and the Department of Revenue and Taxation will remain part of the legislative record for future consideration.
Ending: The bill’s proponents said the change is intended to reduce confusion in the marketplace and to make sure all licensed professionals are held to the same written‑agreement standard.
