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Committee advances bill saying buyers need not sign agency agreement before viewing homes
Summary
Committee counsel and the bill sponsor said HB 50-91 would prevent requiring a buyer's agency agreement before a written offer and require written disclosures; a junior senator warned it could increase disputes between buyers and agents. The committee adopted a strike‑and‑insert amendment and reported the bill with a referral to Judiciary.
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The Senate Committee on Government Organization adopted a strike‑and‑insert amendment and reported House Bill 50-91 after hearing from counsel and the bill sponsor.
Committee counsel summarized the proposed change: "no consumer shall be required to enter into a buyer's agency agreement prior to the execution of a written offer," and that licensees must provide a written disclosure setting out parties, services and compensation before preparing an offer. Counsel said the proposed amendment recasts the language from the licensee's perspective and that the substance is effectively identical to the engrossed bill.
Delegate Patrick Lucas, the bill's appearing sponsor, told senators the measure responds to a recent lawsuit and settlement involving the National Association of Realtors and aims "to protect the consumer from having to tie themselves to a realtor for the entire home buying process." He said the bill restores previous practice and adds required disclosures, describing it as an attempt to "fix that problem."
The junior senator from the sixteenth raised concerns that eliminating the pre‑showing agreement could lead to disputes over commission when a buyer finds a home after multiple showings and then seeks a lower commission or deals directly with the listing agent. "I think the potential for buyers to ... just tell the realtor, hey, you showed me 10 properties ... I'm no longer interested," the junior senator said, and said he planned to vote no when the question was called.
After the strike‑and‑insert was adopted by voice vote, the vice chair moved the bill be reported to the full Senate with the recommendation that it pass as amended and, because it has a double reference, first be referred to the Committee on Judiciary. The motion carried on a voice vote.
