§ 17-42-701 - Definitions.
17-42-701. Definitions.
As used in this subchapter:
(1) "Actual introduction" means the referral of a principal to a licensee by the person or entity seeking the referral fee before the principal and licensee have engaged in material discussions regarding a specific real estate transaction;
(2) (A) "Interference with a licensee relationship" means:
(i) A demand for a referral fee from a licensee when reasonable cause for payment does not exist;
(ii) A threat to reduce, withhold, or eliminate any relocation or other benefits or the actual reduction, withholding, or elimination of any relocation or other benefit for the purpose of obtaining a referral fee from a licensee when reasonable cause for payment does not exist; or
(iii) An attempt to induce a principal to breach or terminate a representation agreement for the purpose of replacing that agreement with another representation agreement in order to obtain a referral fee.
(B) "Interference with a licensee relationship" does not mean:
(i) Communications between an employer or an employer's representative and an employee concerning relocation policies and benefits if the communication does not involve advice about or encouragement to terminate or amend an existing representation agreement; and
(ii) Advice to a principal about the right to allow a licensee relationship to expire under its own terms or not to renew the licensee relationship upon its expiration;
(3) "Licensee relationship" means an agreement between a licensee and a principal under which the licensee agrees to act as a principal broker as defined in 17-42-103;
(4) "Principal" means the buyer, seller, landlord, or tenant in a licensee relationship;
(5) "Reasonable cause for payment" means the creation of a cooperative or subagency relationship between licensees or a representation agreement as the result of an actual introduction of business;
(6) (A) "Referral fee" means any mutually agreed-upon fee, commission, or other consideration to be paid by a licensee to any person or entity.
(B) "Referral fee" does not mean a cooperative commission offered by a listing licensee to a selling licensee or by a selling licensee to a listing licensee; and
(7) (A) "Representation agreement" means an agreement between a principal and a licensee in which the licensee agrees to perform any of the activities of a principal broker.
(B) "Representation agreement" includes:
(i) A buyer's agency agreement, a property listing agreement, and a cooperative brokerage agreement; and
(ii) Any agreement containing any of the agreements described in subdivision (7)(B)(i) of this section.