Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB1075 Compare Versions

Version 1 (Old)

Version 2 (New)

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31	28		STATE OF OKLAHOMA
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33	30		1st Session of the 60th Legislature (2025)
34	31
35	32		COMMITTEE SUBSTITUTE
36	33		FOR ENGROSSED
37	34		SENATE BILL NO. 1075 By: Rosino of the Senate
38	35
39	36		and
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41	38		Moore of the House
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43	40
44	41
45	42		COMMITTEE SUBSTITUTE
46	43
47	44		An Act relating to The Oklahoma Real Estate License
48	45		Code; amending 59 O.S. 2021, Section 858 -102, as
49	46		amended by Section 1, Chapter 159, O.S.L. 2024 (59
50	47		O.S. Supp. 2024, Section 858 -102), which relates to
51	48		definitions; defining terms; requiring wholesalers to
52	49		provide certain disclosures; prohibiting wholesalers
53	50		from certain practices; proscribing certain
54	51		requirements for notice for the contract or
55	52		agreement; allowing for contracts to be invalid
56	53		without proper disclosure; requiring the Oklahoma
57	54		Real Estate Commission to provide certain form;
58	55		providing for promulgati on of rules; providing for
59	56		codification; and providing an effective date.
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65	62		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
66	63		SECTION 1. AMENDATORY 59 O.S. 2021, Section 858 -102, as
67	64		amended by Section 1, Chapter 159, O.S.L. 2024 (59 O.S. Supp. 2024,
68	65		Section 858-102), is amended to read as follows:
	66	+	Section 858-102. When used in this Code, unless the context
	67	+	clearly indicates otherwise, the following words and terms shall be
	68	+	construed as having the meanings ascribed to them i n this section:
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70		-	SB1075 HFLR Page 2
71		-	BOLD FACE denotes Committee Amendments. 1
	70	+	Req. No. 13530 Page 2 1
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96		-	Section 858-102. When used in this Code, unless the context
97		-	clearly indicates otherwise, the following words and terms shall be
98		-	construed as having the meanings ascribed to them in this section:
99	95		1. The term “real estate” shall include any interest or estate
100	96		in real property, within or without the State of Oklahoma, whether
101	97		vested, contingent or future, corporeal or incorporeal, freehold or
102	98		nonfreehold, and including leaseholds, op tions and unit ownership
103	99		estates to include condominiums, time -shared ownerships and
104	100		cooperatives; provided, however, that the term real estate shall not
105	101		include oil, gas or other mineral interests, or oil, gas or other
106	102		mineral leases; and provided further , that the provisions of this
107	103		Code shall not apply to any oil, gas, or mineral interest or lease
108	104		or the sale, purchase or exchange thereof;
109	105		2. The term “broker” shall include any person, partnership,
110	106		limited liability company, association, corporation, or business
111	107		entity, foreign or domestic, who for a fee, commission, or other
112	108		valuable consideration, or who with the intention or expectation of
113	109		receiving or collecting a fee, commission, or other valuable
114	110		consideration, performs any of the following acts:
115	111		a. sells, exchanges, purchases, rents, or leases real
116	112		estate,
117	113		b. offers to sell, exchange, purchase, rent, or lease
118	114		real estate,
	115	+	c. negotiates or attempts to negotiate the listing, sale,
	116	+	exchange, purchase, rent, or lease of real estate,
	117	+	d. lists or offers, attempts, or agrees to list real
	118	+	estate for sale, exchange, rent or lease,
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120		-	SB1075 HFLR Page 3
121		-	BOLD FACE denotes Committee Amendments. 1
	120	+	Req. No. 13530 Page 3 1
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146		-	c. negotiates or attempts to negotiate the listing, sale,
147		-	exchange, purchase, rent, or lease of real estate,
148		-	d. lists or offers, attempts, or agrees to list real
149		-	estate for sale, exchange, rent or lease,
150	145		e. auctions or offers, attempts, or agrees to auction
151	146		real estate,
152	147		f. controls the acceptance or deposit of rent from a
153	148		resident of a single -family residential real property
154	149		unit,
155	150		g. solicits listings of places for rent or lease,
156	151		h. solicits for prospective tenants, purchasers, or
157	152		sellers, or
158	153		i. advertises or holds himself or herself out as engaged
159	154		in such activities;
160	155		3. The term “broker associate” shall include any person who has
161	156		qualified for a license as a broker associate, and who is employed
162	157		or engaged by, associated as an independent contractor with, or on
163	158		behalf of and with the permission of a broker to perform any act set
164	159		out in the definition of a broker;
165	160		4. The term “business day” means any calendar day except for
166	161		Saturday, Sunday, or any public holiday recognized by state or
167	162		federal law;
	163	+	5. The term “contract” means any agreement or arrangement,
	164	+	including power of attorney, for the purchase, sale, or assignment
	165	+	of real estate;
	166	+	6. The term “homeowner” means any individual, entity, trust, or
	167	+	partnership holding title to residential property;
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169		-	SB1075 HFLR Page 4
170		-	BOLD FACE denotes Committee Amendments. 1
	169	+	Req. No. 13530 Page 4 1
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195		-	5. The term “contract” means any agreement or arrangement,
196		-	including power of attorney, for t he purchase, sale, or assignment
197		-	of real estate;
198		-	6. The term “homeowner” means any individual, entity, trust, or
199		-	partnership holding title to residential property;
200	194		7. The term “real estate sales associate” shall include any
201	195		person having a renewable license and employed or engaged by, or
202	196		associated as an independent contractor with, or on behalf of, a
203	197		broker to do or deal in any act, acts or transactions set out in the
204	198		definition of a broker;
205	199		5. 8. “Provisional sales associate” shall include any person
206	200		who has been licensed after June 30, 1993, employed or engaged by,
207	201		or associated as an independent contractor with, or on behalf of, a
208	202		broker to do or deal in any act, acts or transactions set out in the
209	203		definition of a broker and subject to an additional forty -five-
210	204		clock-hour postlicensing educati onal requirement to be completed
211	205		within the first twelve -month license term. However, the Oklahoma
212	206		Real Estate Commission shall promulgate rules for those persons
213	207		called into active military service for purposes of satisfying the
214	208		postlicensing educational requirement. The license of a provisional
215	209		sales associate shall be nonrenewable unless the postlicensing
216	210		requirement is satisfied prior to the expiration date of the
217	211		license. Further, the terms sales associate and provisional sales
	212	+	associate shall be sy nonymous in meaning except where specific
	213	+	exceptions are addressed in the Oklahoma Real Estate License Code;
	214	+	6. 9. The term “successful completion” shall include
	215	+	prelicense, postlicense, and distance education courses in which an
	216	+	approved public or privat e school entity has examined the
	217	+	individual, to the satisfaction of the entity and standards as
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219		-	SB1075 HFLR Page 5
220		-	BOLD FACE denotes Committee Amendments. 1
	219	+	Req. No. 13530 Page 5 1
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245		-	associate shall be synonymous in meaning except where specific
246		-	exceptions are addressed in the Oklahoma Real Estate License Code;
247		-	6. 9. The term “successful completion” shall include
248		-	prelicense, postlicense, and distance education cou rses in which an
249		-	approved public or private school entity has examined the
250		-	individual, to the satisfaction of the entity and standards as
251	244		established by the Commission, in relation to the course material
252	245		presented during the offering;
253	246		7. 10. The term “renewable license” shall refer to a broker,
254	247		broker associate or sales associate who is a holder of such license
255	248		or to a provisional sales associate who has completed the
256	249		educational requirements within the required time period as stated
257	250		in the Code;
258	251		8. 11. The term “nonrenewable license” shall refer to a
259	252		provisional sales associate who is the holder of such license and
260	253		who has not completed the postlicense educational requirement within
261	254		the required time period as stated in the Code;
262	255		9. 12. The term “surrendered license” shall refer to a real
263	256		estate license which is surrendered, upon the request of the
264	257		licensee, due to a pending investigation or disciplinary
265	258		proceedings;
266	259		10. 13. The term “canceled license” shall refer to a real
267	260		estate license which is canceled, upon the request of the licensee
	261	+	and approval of the Commission, due to a personal reason or
	262	+	conflict;
	263	+	11. 14. The term “publicly market” shall include all
	264	+	advertisements and marketing conducted in a public or open manner or
	265	+	place;
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269		-	SB1075 HFLR Page 6
270		-	BOLD FACE denotes Committee Amendments. 1
	267	+	Req. No. 13530 Page 6 1
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295		-	and approval of the Commission, due to a personal reason or
296		-	conflict;
297		-	11. 14. The term “publicly market” shall include all
298		-	advertisements and marketing conducted in a public or open manner or
299		-	place;
300	292		12. 15. “Licensee” shall include any person who performs any
301	293		act, acts or transactions set out in the definition of a broker and
302	294		licensed under the Oklahoma Real Estate License Code;
303	295		13. 16. The word “Commission” shall mean the Oklahoma Real
304	296		Estate Commission;
305	297		14. 17. The word “person” shall include and mean ever y
306	298		individual, partnership, association or corporation, foreign or
307	299		domestic;
308	300		15. 18. Masculine words shall include the feminine and neuter,
309	301		and the singular includes the plural; and
310	302		16. 19. The word “associate” shall mean a broker associate,
311	303		sales associate or provisional sales associate ; and
312	304		20. The term “wholesaler” means any individual or entity
313	305		engaging in the business of securing, negotiating, or facilitating
314	306		the sale of residential real estate for the primary purpose of
315	307		transferring, assigning, or s elling their equitable interest in the
316	308		property, directly or indirectly, for financial profit. This
317	309		includes any person or entity that:
	310	+	a. enters into a contract to purchase residential real
	311	+	estate with the intent of assigning or selling the
	312	+	contractual rights to another party before taking
	313	+	possession or legal ownership of such residential real
	314	+	estate, and
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319		-	SB1075 HFLR Page 7
320		-	BOLD FACE denotes Committee Amendments. 1
	316	+	Req. No. 13530 Page 7 1
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345		-	a. enters into a contract to purchase residential real
346		-	estate with the intent of assigning or selling the
347		-	contractual rights to another party before taking
348		-	possession or legal ownership of such residential real
349		-	estate, and
350	341		b. engages in double closing. As used in this paragraph,
351	342		“double closing” means the wholesaler simultaneously
352	343		closes two separate transactions on the s ame property,
353	344		one with the original seller and one with the end
354	345		buyer, without the intent to reside in or otherwise
355	346		materially improve such residential real estate .
356	347		SECTION 2. NEW LAW A new section of law to be codified
357	348		in the Oklahoma Statutes as Section 858.314 of Title 59, unless
358	349		there is created a duplication in numbering, reads as follows:
359	350		A. A wholesaler shall:
360	351		1. Disclose in writing to the homeowner, before the execution
361	352		of any contract or written agreement, his or her inten t to assign or
362	353		sell his or her equitable interest in the residential real estate
363	354		for a higher price than what is offered to the homeowner;
364	355		2. Provide a prominent written disclosure to the homeowner in
365	356		all written contracts between the parties stating that the homeowner
366	357		should seek legal advice before signing any contract concerning his
367	358		or her home; and
	359	+	3. Disclose in writing to the homeowner that the homeowner has
	360	+	the right to cancel the contract without penalty within seven (7)
	361	+	business days after the ex ecution of the contract.
	362	+	B. A wholesaler shall not, directly or indirectly:
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369		-	SB1075 HFLR Page 8
370		-	BOLD FACE denotes Committee Amendments. 1
	364	+	Req. No. 13530 Page 8 1
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395		-	3. Disclose in writing to the homeowner that the homeowner has
396		-	the right to cancel the contract without penalty w ithin seven (7)
397		-	business days after the execution of the contract.
398		-	B. A wholesaler shall not, directly or indirectly:
399	389		1. Act as an advisor or consultant, or in any other manner
400	390		representing that the wholesaler is acting on behalf of the
401	391		homeowner; or
402	392		2. Represent himself or herself as holding a certification or
403	393		license, or being a member of a licensed profession, without
404	394		possession of the certification or license.
405	395		C. The homeowner shall have the right to cancel the contract
406	396		without penalty within two (2) business days from the date of
407	397		execution of the contract.
408	398		D. The wholesaler shall be prohibited from placing any lien or
409	399		encumbrance on or otherwise clouding title of the property.
410	400		E. Any contract or agreement used by a wholesaler shall contain
411	401		the following:
412	402		1. The name, address, and telepho ne number of the wholesaler;
413	403		2. The address of the residence involved in the transaction;
414	404		3. The total consideration to be given by the wholesaler to the
415	405		homeowner;
416	406		4. A complete description of the terms of payment or other
417	407		consideration including, but not limited to, any services of any
	408	+	nature which the wholesaler represents he or she will perform for
	409	+	the seller before or after the sale; and
	410	+	5. The following notice shall appear on the contract in
	411	+	immediate proximity to the space reserved for the seller ’s signature
	412	+	and shall be in at least twelve -point bold type if the contract is
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419		-	SB1075 HFLR Page 9
420		-	BOLD FACE denotes Committee Amendments. 1
	414	+	Req. No. 13530 Page 9 1
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445		-	nature which the wholesaler represents he or she will perform for
446		-	the seller before or after the sale; and
447		-	5. The following notice shall appear on the contract in
448		-	immediate proximity to the space reserved for the seller’s signature
449		-	and shall be in at least twelve -point bold type if the contract is
450	439		typed or in capital letters if the contract is printed. The notice
451	440		shall contain the name of the wholesaler, the date and time by which
452	441		the contract shall be canceled, and the following language:
453	442		“NOTICE REQUIRED BY OKLAHOMA LAW : You may cancel this contract
454	443		at any time before midnight of ____________________ (Date).
455	444		____________ (Name of Wholesaler) or anyone working for
456	445		_____________ (Name of Wholesaler) CANNOT ask you to s ign or have
457	446		you sign any deed or any other document until your right to cancel
458	447		this contract has ended. See the attached notice of cancellation
459	448		form for an explanation of this right. You should always consult an
460	449		attorney or community organization before signing any legal
461	450		documents concerning your home. It is advisable that you find your
462	451		own attorney. The law requires this contract to contain the entire
463	452		agreement. You should not rely upon any other written or oral
464	453		agreement or promise.”
465	454		F. Failure to include any of the required disclosures under
466	455		this section shall render the contract invalid and unenforceable by
467	456		the wholesaler and shall entitle the homeowner to any earnest money
468	457		deposit involved in the transaction. Any earnest money deposit or
	458	+	security deposit by a wholesaler shall be kept in an escrow account
	459	+	maintained in this state with a federally insured financial
	460	+	institution. The homeowner may terminate the contract at any time
	461	+	if the wholesaler fails to comply with the provisions of this
	462	+	section.
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470		-	SB1075 HFLR Page 10
471		-	BOLD FACE denotes Committee Amendments. 1
	464	+	Req. No. 13530 Page 10 1
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496		-	security deposit by a wholesaler shall be kept in an escrow account
497		-	maintained in this state with a federally insured financial
498		-	institution. The homeowner may terminate the contract at any time
499		-	if the wholesaler fails to comply with the provisions of this
500		-	section.
501	489		G. The Oklahoma Real Estate Commission shall create, publish,
502	490		and provide on its website a notice of cancellation form, which
503	491		shall be included by the wholesaler with any contract. This form
504	492		shall be provided to the homeowner at no cost.
505	493		H. The Commission shall promulgate any rules necessary to
506	494		implement the provisions of this section.
507	495		SECTION 3. This act shall become effective November 1, 2025.
508	496
509		-	COMMITTEE REPORT BY: COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT
510		-	OVERSIGHT, dated 04/16/2025 - DO PASS, As Amended.
	497	+	60-1-13530 AO 04/16/25
	498	+
	499	+