AS Title 8, Chapter 88: Real Estate Brokers and Other Licensees

Article 1. Real Estate Commission. Chapter 88. Real Estate Brokers and Other Licensees. Sec. 08.88.010. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.011. Creation and membership of commission. There is created a Real Estate Commission. It consists of seven members. Sec. 08.88.020. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.021. Appointment and term of office. [Repealed, § 49 ch 94 SLA 1987. For current law, see AS 08.01.035 .] Sec. 08.88.026. Terms of office. [Repealed, § 20 ch 80 SLA 1996. For current law, see AS 39.05.053 .] Sec. 08.88.030. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.031. Executive secretary of commission. The department shall, after consultation with the commission, employ a person, who is not a member of the commission, to serve as executive secretary for the commission. The executive secretary shall perform duties as assigned by the commission and may use the title “executive administrator” when performing the duties. Sec. 08.88.034. Investigator of the commission. [Repealed, § 9 ch 74 SLA 1987.] Sec. 08.88.037. Investigation and injunction. (a) The commission may request the department to conduct investigations to determine whether a person has violated a provision of this chapter or a regulation adopted under it, or to secure information useful in the administration of this chapter. (b) If it appears to the department that a person has engaged in or is about to engage in an act or practice in violation of a provision of this chapter or a regulation adopted under it and that action is warranted in the public interest, the department shall notify all commission members by telephone or facsimile of a proposed order or action, and, if a majority of the members of the commission approve, the department may (1) after reasonable notice of and an opportunity for a hearing is given to the person, issue an order directing the person to stop the act or practice; the department may issue a temporary order before a hearing is held; a temporary order remains in effect until a final order affirming, modifying, or reversing the temporary order is issued or until 15 days have elapsed after the person receives the notice and has not requested a hearing; a temporary order becomes final if the person to whom the notice is addressed does not request a hearing within 15 days after receiving the notice; if a hearing is requested, a hearing shall be conducted by a hearing officer within 30 days; the commission shall issue a final order within 10 days after the hearing; (2) bring an action in superior court to enjoin the act or practice and to enforce compliance with this chapter, a regulation adopted under it, or an order issued under it; (3) examine or have examined the books and records of a person whose business activities require licensure under this chapter and the department may require the person to pay the reasonable costs of the examination; and (4) issue subpoenas for the attendance of witnesses, and the production of books, records, and other documents. Sec. 08.88.040. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.041. Qualifications of commission members. (a) Five members of the commission must be real estate brokers or associate brokers who have been licensed real estate brokers or licensed associate brokers in the state for at least three years before appointment. Two members of the commission must be public members in accordance with AS 08.01.025 . (b) Of the five members of the commission who must be real estate brokers or associate brokers, one member shall be from the First Judicial District, one shall be from the Second Judicial District, one shall be from the Third Judicial District, one shall be from the Fourth Judicial District and one shall be from the state at large. However, if no licensed real estate broker or licensed associate broker is eligible or available for appointment from the Second Judicial District, then two licensed real estate brokers or licensed associate brokers shall be appointed from the state at large. Sec. 08.88.050. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.051. Commission meetings and officers. (a) The commission shall hold a regular annual meeting. It may hold a special meeting at the call of the chairman or at the request of three commission members. (b) At least two judicial districts shall be represented and at least a majority of the commission members shall be present in order to conduct business. (c) The commission shall elect its officers at the first meeting of each fiscal year. Sec. 08.88.060. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.061. Assistants. Notwithstanding contrary provisions of AS 08.01.050 , the commission may assign or designate assistants to (1) issue licenses to applicants who meet the qualifications for licensure established under this chapter; (2) prepare questions on examinations; (3) administer and grade examinations; (4) certify courses required under this chapter; (5) approve instructors to teach courses required under this chapter; and (6) negotiate terms for payment of fines and other money due under this chapter. Sec. 08.88.070. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.071. Duties and powers of the commission; grounds for disciplinary sanctions. (a) The commission shall (1) determine whether applicants meet requirements for licenses under this chapter and issue licenses to those who qualify; (2) prepare and grade examinations; (3) after hearing, have the authority to suspend or revoke the license of a licensee or impose other disciplinary sanctions authorized under AS 08.01.075 on a licensee who (A) with respect to a real estate transaction (i) made a substantial misrepresentation; (ii) made a false promise likely to influence, persuade, or induce; (iii) in the case of a real estate broker, pursued a flagrant course of misrepresentation or made a false promise through another real estate licensee; (iv) has engaged in conduct that is fraudulent or dishonest; (v) violates AS 08.88.391 ; (vi) violates AS 08.88.396 ; (B) procures a license by deceiving the commission, or aids another to do so; (C) has engaged in conduct of which the commission did not have knowledge at the time the licensee was licensed demonstrating the licensee's unfitness to engage in the business for which the licensee is licensed; (D) knowingly authorizes, directs, connives at, or aids in publishing, distributing, or circulating a material false statement or misrepresentation concerning the licensee's business or concerning real estate offered for sale, rent, or lease, or managed in the course of the licensee's business in this or any other state or concerning the management of an association in the course of a licensee's business in this or another state; (E) if a real estate broker, wilfully violates AS 08.88.171 (d) or 08.88.291; (F) if an associate real estate broker, claims to be a real estate broker, or, if a real estate salesperson, claims to be a real estate broker or associate real estate broker; (G) if a real estate broker, employs an unlicensed person to perform activities for which a real estate license is required; (H) if an employed real estate licensee of a real estate broker, fails immediately to turn money or other property collected in a real estate transaction over to the employing real estate broker; or (I) fails to carry and maintain errors and omissions insurance with terms and conditions established by the commission under AS 08.88.172 ; (4) prosecute, through the Department of Law, violations of the provisions of this chapter or lawful regulations adopted under this chapter; (5) release for publication in a newspaper of general circulation in the locale of the offending person's principal office registered with the commission notice of disciplinary action taken by the commission against a person licensed under this chapter; (6) issue a temporary permit to the personal representative of the estate of a deceased real estate broker or to another person designated by the commission with the approval of the personal representative of the estate in order to secure proper administration in concluding the affairs of the decedent broker's real estate business; (7) issue a temporary permit to a licensee designated by the commission for the purpose of securing proper administration, temporarily managing, or concluding the affairs of the real estate business of a broker if (A) an investigation produces substantial evidence that the broker has misappropriated trust funds; (B) the real estate license of the broker is suspended; or (C) the broker is incapacitated because of a traumatic event or medical condition, as defined in regulations adopted by the commission; (8) issue a temporary permit to the personal representative of a legally incompetent real estate broker or to another person designated by the commission with the approval of the personal representative of the broker in order to secure proper administration in temporarily managing the real estate business of the broker; (9) establish and periodically revise the form of the seller's property disclosure statement required by AS 34.70.010 ; (10) have the authority to levy civil fines as established in this chapter; (11) revoke the license of a broker, associate broker, or real estate salesperson who is convicted of a felony or other crime committed while licensed under this chapter that, in the judgment of the commission, affects the ability of that person to practice as a broker, associate broker, or real estate salesperson competently and safely or who is convicted of forgery, theft, extortion, conspiracy to defraud creditors, or fraud; notwithstanding AS 08.88.171 , a person whose license is revoked under this paragraph is not qualified to obtain or renew a license under AS 08.88.171 (a) — (c) until seven years have elapsed since the person completed the sentence imposed for the conviction. (b) When an award is made from the real estate recovery fund under this chapter, the commission may suspend the license of the real estate licensee whose actions formed the basis of the award. A suspension ordered under this subsection shall be lifted if the licensee reaches an agreement with the commission on terms and conditions for the repayment to the real estate recovery fund of the money awarded to the claimant and if the licensee satisfies the requirements of AS 08.88.095 . The suspension shall be reimposed if the licensee violates the terms of a repayment agreement entered into under this subsection. (c) For the purposes of (a)(3) of this section, the conduct of an employee is attributable to a real estate broker if the real estate broker has actual knowledge that the employee is going to engage in the conduct and agrees to the conduct, either actively or by remaining silent, or ratifies the conduct after it is engaged in. (d) The commission may investigate a violation of a provision of AS 08.88.600 — 08.88.695 by a real estate licensee and take administrative action under (a)(3) of this section if the commission has reason to believe that a violation has occurred. Sec. 08.88.080. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.081. Commission regulations. The commission shall adopt regulations necessary to carry out the purposes of this chapter. Sec. 08.88.090. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.091. Education of applicants and licensees. (a) The commission may conduct and assist in conducting real estate clinics, meetings, courses, or institutes. The commission may (1) assist libraries and educational institutions in sponsoring studies and programs; and (2) publish informational materials for the purpose of raising the standards of the real estate business and the competency of licensees. (b) An applicant for licensure under AS 08.88.171 (c) must complete 40 hours of education approved by the commission before the person may be licensed under that subsection. (c) An applicant for licensure under AS 08.88.171 (a) or (b) shall complete 30 hours of education approved by the commission before the person may be licensed under either of those subsections. (d) A person who is licensed under this chapter must complete 20 hours of continuing education approved by the commission before the person's license may be renewed. The commission may not establish limits that prevent a person from satisfying this continuing education requirement within a two-day period. (e) Except for a course described in (f)(1) or (3) of this section, in order for an educational course to be recognized for credit under this section, AS 08.88.095 , or 08.88.098, the course outline and the instructor of the course shall have been approved by the commission or the commission's designee before the course is conducted. A course outline or instructor is considered approved if the commission or the commission's designee does not disapprove the outline or instructor within 45 days after the date on which complete application was made for approval. Each approved contact hour of a submitted course outline constitutes one credit hour of education under (d) of this section, AS 08.88.095 , or 08.88.098. The fee for continuing education course certification under AS 08.88.221 and for course certification under AS 08.88.221 to satisfy the educational requirements of AS 08.88.095 and 08.88.098 must be based on the hours approved for credit, not on the hours submitted. (f) The commission shall establish by regulation the educational and continuing educational requirements for licenses issued by the commission. The regulations for continuing education requirements and for educational requirements under AS 08.88.095 and 08.88.098 must allow the following types of courses to qualify for the appropriate number of credit hours, as determined by the commission: (1) courses that are developed by national organizations, as identified for the purpose of this paragraph in the commission's regulations, that are delivered by nationally certified instructors and that are required in order to earn professional designations from a national organization in specialized areas of licensed real estate practice; notwithstanding other provisions of this chapter, the commission may not charge a fee for these courses; (2) technology courses directly related to real estate practice that are designed to enhance the skills and performance of a real estate licensee; and (3) courses offered by an accredited college or university as part of a real estate curriculum that are available for at least one quarter-hour or one-half semester-hour of academic credit; the commission may not charge a fee for these courses. (g) The commission shall establish core curricula for continuing education in the following areas: real estate sales, property management, community association management, and commercial sales. A licensee shall complete at least one of the four core curricula during each biennial licensing period as part of the licensee's continuing education. Sec. 08.88.095. Educational requirements after initial license. (a) In addition to the continuing educational requirements of AS 08.88.091 (d), within one year after the date that the commission issues an initial license under this chapter, the licensee shall complete 30 hours of education approved by the commission under AS 08.88.091 . (b) On the document representing an initial license, the commission shall include clear and prominent language stating that the license is subject to the licensee's completion of the educational requirements within one year after the date of the issuance of the license. (c) Within 30 days after the end of the one-year period, the licensee shall submit, on a form provided by the commission, a certification that the licensee has completed the educational requirements. (d) After a licensee submits the completed form under (c) of this section and pays the required fee, the commission shall issue a new license document to the licensee that does not contain the language required by (b) of this section. (e) If a licensee fails to complete the educational requirements within the one-year period or to provide the certification required by (c) of this section, the license automatically lapses 30 days after the end of the one-year period. However, the commission may reinstate the license under AS 08.88.241 . (f) Notwithstanding the other provisions of this section, an individual who is issued an initial license as a real estate broker is not required to satisfy the educational requirements for that initial license if, immediately before the issuance, the individual is licensed as an associate real estate broker under this chapter. (g) In this section, “educational requirements” means the educational requirements of (a) of this section. Sec. 08.88.098. Educational requirements after suspension. (a) In addition to the continuing educational requirements of AS 08.88.091 (d) and the educational requirements of AS 08.88.095 (a), if the commission suspends a license under AS 08.01.075 , the licensee shall complete the education required by the commission before the commission may reinstate the suspended license. (b) After completing the educational requirements of (a) of this section, the licensee shall submit, on a form provided by the commission, a certification that the licensee has completed the educational requirements. (c) The educational requirements of (a) of this section are in addition to any other conditions that the commission sets for reinstating a suspended license under this chapter. Sec. 08.88.100. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.101. Administrative duties of the commission. [Repealed, § 9 ch 74 SLA 1987.] Sec. 08.88.110. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.111. Commission regulations. [Repealed, § 55 ch 45 SLA 1998.] Sec. 08.88.120. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.121. Sale of register. [Repealed, § 9 ch 74 SLA 1987.] Sec. 08.88.130. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.131. Applicability of the Administrative Procedure Act. AS 44.62 (Administrative Procedure Act) applies to regulations and proceedings under this chapter. Sec. 08.88.140. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.141. Compensation. A commission member is entitled to transportation expenses and per diem allowances specified in AS 39.20.180 . Secs. 08.88.150 — 08.88.160. [Repealed, § 3 ch 95 SLA 1964.] Article 2. Licensing. Sec. 08.88.161. License required. Unless licensed as a real estate broker, associate real estate broker, or real estate salesperson in this state, a person may not, except as otherwise provided in this chapter, (1) sell, exchange, rent, lease, auction, or purchase real estate; (2) list real estate for sale, exchange, rent, lease, auction, or purchase; (3) collect rent for the use of real estate or collect fees for property management; (4) practice, or negotiate for a contract to practice, property management; (5) collect fees for community association management; (6) practice, or negotiate for a contract to practice, community association management; (7) as a business, buy, sell, or deal in (A) options in real estate; or (B) options in improvements to real estate; (8) assist in or direct the procuring of prospective buyers and sellers of real estate, communicate with prospective buyers and sellers of real estate, or assist in the negotiation of a transaction that results or is calculated to result in the sale, exchange, rent, lease, auction, or purchase of real estate; (9) accept or pay a fee for the performance of any of the activities listed in this section except as otherwise specifically provided in this chapter; (10) hold out to the public as being engaged in the business of doing any of the things listed in this section; or (11) attempt or offer to do any of the things listed in this section. Sec. 08.88.165. Conduct of auctions. Notwithstanding AS 08.88.161 , a person who is not licensed under this chapter may conduct an auction of real estate if (1) the person has completed an auctioneering program at a school certified by an agency of this or another state, and the program included a course on real estate sales; and (2) a real estate broker licensed under this chapter or an associate real estate broker licensed under this chapter supervises and is present during the auction. Sec. 08.88.167. Civil penalty for unlicensed or unauthorized practice. (a) In addition to penalties prescribed by any other provision of law, if a person engages or offers to engage in an activity for which a license is required under AS 08.88.161 without being licensed or authorized to engage in the activity in accordance with the provisions of this chapter, the commission may enter an order levying a civil penalty. (b) A civil penalty levied under this section may not exceed $5,000, or the amount of gain realized plus $5,000, whichever is greater, for each offense. In levying a civil penalty, the commission shall set the amount of the penalty imposed under this section after taking into account the seriousness of the violation, the economic benefit resulting from the violation, the history of violations, and other facts the commission considers relevant. (c) Before entering an order under (a) of this section, the commission shall send the person written notice of the proposed order that grants the person a 30-day period during which the person may request a hearing on the record. (d) In connection with proceedings under (a) — (c) of this section, the commission may issue subpoenas to compel the attendance and testimony of witnesses and the disclosure of evidence and may request the department to bring an action to enforce a subpoena. (e) A person aggrieved by the levy of a civil penalty under this section may file an appeal with the superior court for judicial review of the penalty under AS 44.62.560 . (f) If a person fails to pay a civil penalty within 30 days after entry of an order under (a) of this section, or within 10 days after the court enters a final judgment in favor of the commission of an order stayed pending an appeal under (e) of this section, the commission may initiate other action to recover the amount of the penalty. (g) An action to enforce an order under this section may be combined with an action for an injunction under AS 08.88.037 . Sec. 08.88.170. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.171. Eligibility for license. (a) A natural person qualifies for a real estate broker license if the person passes the brokers examination, applies for a license within six months after passing the examination, furnishes satisfactory proof of successful completion of the education requirements of AS 08.88.091 , has had at least 36 months of active and continuous experience as a real estate licensee within the 60 months immediately preceding application for the broker license, is not under indictment for or seven years have elapsed since the person has completed a sentence imposed upon conviction of a felony or other crime that, in the judgment of the commission, affects the person's ability to practice as a real estate broker competently and safely or upon conviction of forgery, theft, extortion, conspiracy to defraud creditors, or fraud, and is an owner of a real estate business or employed as a real estate broker by a foreign or domestic corporation, partnership, limited partnership, or limited liability company. Unless the broker fails to satisfy the educational requirements of AS 08.88.095 or renew the license, or the broker's license is suspended or revoked, the broker's license continues in effect as long as the broker's license is active. If the broker stops being an owner of a real estate business or stops being employed as a real estate broker by a foreign or domestic corporation, partnership, limited partnership, or limited liability company, the broker's license is suspended from the time the broker stops until the broker satisfies the educational requirements of AS 08.88.098 and (1) again becomes an owner of a real estate business or is again employed as a real estate broker by a foreign or domestic corporation, partnership, limited partnership, or limited liability company; or (2) is employed by another broker as an associate broker, in which case the real estate broker license shall be returned to the commission by the broker, and the commission shall issue the broker an associate real estate broker license. (b) A natural person qualifies for an associate real estate broker license if the person passes the brokers examination, applies for the license within six months after passing the examination, submits satisfactory proof of successful completion of the education requirements of AS 08.88.091 , has had at least 36 months of active and continuous experience as a real estate licensee within the 60 months immediately preceding application for the license, furnishes satisfactory proof that errors and omissions insurance required under AS 08.88.172 has been obtained, is not under indictment for or seven years have elapsed since the person has completed a sentence imposed upon conviction of a felony or other crime that, in the judgment of the commission, affects the person's ability to practice as an associate real estate broker competently and safely or upon conviction of forgery, theft, extortion, conspiracy to defraud creditors, or fraud, and is employed by a licensed real estate broker as an associate real estate broker. Unless the associate broker fails to satisfy the educational requirements of AS 08.88.095 or renew the license, or the associate broker's license is suspended or revoked, the associate broker's license continues in effect as long as the associate broker is employed by a licensed real estate broker as an associate broker. If the associate broker stops being employed by a licensed real estate broker, the associate broker's license is suspended from the time the associate broker stops until the associate broker satisfies the educational requirements of AS 08.88.098 and (1) again is employed by a real estate broker as an associate broker; or (2) becomes an owner of a real estate business or is employed as a real estate broker by a foreign or domestic corporation, partnership, limited partnership, or limited liability company, in which case the associate broker's license shall be returned to the commission by the associate broker, and the commission shall issue the licensee a broker's license. (c) A natural person qualifies for a real estate salesperson license if the person passes the real estate salesperson examination, applies for the license within six months after passing the examination, submits satisfactory proof of successful completion of the education requirements of AS 08.88.091 , is at least 19 years of age, furnishes satisfactory proof that errors and omissions insurance required under AS 08.88.172 has been obtained, is not under indictment for a felony or other crime that, in the judgment of the commission, affects the individual's ability to practice as a real estate salesperson competently and safely or under indictment for forgery, theft, extortion, conspiracy to defraud creditors, or fraud, or, if convicted of such an offense, seven years have elapsed since the person completed the sentence imposed upon conviction. Unless the salesperson fails to satisfy the educational requirements of AS 08.88.095 or renew the license, or the real estate salesperson's license is suspended or revoked, a real estate salesperson's license continues in effect. (d) A real estate licensee shall promptly inform the commission of a change in business association that affects the status of the licensee's license under this section. (e) Notwithstanding (a) — (d) of this section, a natural person qualifies for a limited license to practice community association management under (f) of this section if the person (1) applies by January 1, 1999; (2) pays the required fees; (3) demonstrates to the commission's satisfaction that the person has engaged in the practice of community association management for at least 24 months before January 1, 1999; and (4) meets other requirements that may be established by the commission in its regulations for issuance of a license under this subsection. (f) A person who qualifies under (e) of this section shall be issued an associate broker license if, at the time of issuance, the person is employed by a broker. A person who qualifies under (e) of this section shall be issued a broker license if, at the time of issuance, the person is the owner of a community association management business or is employed as a community association manager by a foreign or domestic corporation, partnership, limited partnership, or limited liability company. After initial issuance of a license to a person under this subsection, the person is subject to the same requirements that exist for other brokers and associate brokers licensed under this chapter. However, notwithstanding other provisions of this chapter, under a license issued under this subsection, a person may practice only community association management and does not qualify as a broker or associate broker for purposes of AS 08.88.161 (1) — (4), (7), or (8) or 08.88.165(2). A person issued a limited license to practice community association management under this section may not use the terms “salesperson,” “broker,” or “associate broker” for any business purpose unless the person is also licensed appropriately under other provisions of this chapter. Sec. 08.88.172. Errors and omissions insurance. (a) A person licensed as a real estate broker, associate real estate broker, or real estate salesperson shall, as a condition of licensing, carry and maintain errors and omissions insurance to cover activities for which licensing is required under AS 08.88.161 . (b) The department shall establish by regulation the terms and conditions of the errors and omissions insurance required by this section, including (1) coverage requirements; (2) limits of coverage; (3) the maximum amount of premium to be charged licensees under a master errors and omissions policy under (d) of this section; and (4) the method for adjusting these amounts based on the Consumer Price Index. (c) A licensee may obtain the errors and omissions insurance required by (a) of this section by (1) obtaining a master insurance policy that may be made available to licensees by the commission; or (2) independently obtaining errors and omissions insurance that complies with the requirements established under (b) of this section. (d) The commission may (1) solicit bids for a master errors and omissions insurance policy for licensees that meets the minimum terms and conditions established under (b) of this section using a competitive sealed bid process under AS 36.30 (State Procurement Code); and (2) charge a licensee a reasonable administration fee to recover costs incurred in connection with the solicitation made under (1) of this subsection. (e) [Repealed, § 4 ch 39 SLA 2016.] (f) A licensee seeking to obtain or renew a license shall certify to the commission that errors and omissions insurance has been obtained. A licensee who elects to independently obtain errors and omissions insurance shall provide a certificate of coverage with the application to obtain or renew a license. Sec. 08.88.173. Fidelity bond for community association managers. (a) If the board of directors of a community association allows a broker to exercise control over community association fees or other community association funds, the broker must provide evidence to the commission that the broker is covered by a blanket fidelity insurance bond. The bond may be in the name of the broker with the association as an additional insured or in the name of the association with the broker as an additional insured. The bond must cover the maximum funds that will be within the control of the community association manager at any time while the bond is in force. The commission may grant an exemption from the bonding requirement of this subsection if the commission determines that the community association manager has equivalent comparable coverage or that coverage is unavailable. The commission may adopt regulations to implement this subsection, including regulations concerning the minimum coverage and terms of coverage that are required and proof of bond and the granting of exemptions. (b) If a loss covered by the fidelity bond required under this section is also reimbursable from the real estate recovery fund, the owners' association that suffered the loss may not recover under the bond until the association has obtained a final judgment, final arbitration award, or settlement agreement and filed a claim for an award under AS 08.88.460 . Sec. 08.88.175. Limitations on community association managers. A licensee may not, within the practice of community association management, exercise control over the (1) reserves or investment accounts of a community association; (2) operating account of a community association unless (A) allowed under a contract that has been approved by the association's board of directors; and (B) duplicate financial statements concerning the account are sent by the institution holding the account to the licensee and the association's board of directors at separate addresses. Sec. 08.88.180. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.181. Content and purpose of examination. (a) The real estate examinations may include questions on real estate business ethics and standards; arithmetic and accounting; elementary principles of land economics and appraisal; the general principles in state statutes relating to deeds, mortgages, real estate contracts, subdivisions, common interest communities, legal descriptions, building restrictions, real estate licensee relationships, agency law, brokerage, disclosure requirements, trust accounting requirements, and landlord and tenant law; property management ethics and standards; community association management operations, ethics, and standards; and the general provisions of this chapter and of the regulations of the commission. (b) The real estate salesperson examination covers the same subjects as the real estate broker examination, but is less difficult. (c) The only purpose of an examination under this chapter is to disqualify those whose lack of ability to participate in real estate transactions would create a serious risk of serious financial loss to members of the public. Sec. 08.88.190. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.191. Administration of examination. (a) The commission shall offer written examinations at periodic intervals but at least once a year. (b) If the commission authorizes the department to contract with a national testing service to prepare, administer, and grade examinations, (1) the commission or its designee shall review the examination and approve its contents; (2) application for an examination may be transmitted by the applicant directly to the national testing service; payment of an examination fee shall be made by the applicant directly to the national testing service's designated representative before the examination is taken by the applicant. (c) An applicant who fails the written examination may request that the examination be reevaluated. The commission shall provide by regulation for a system of reevaluating examinations on request of an applicant who fails the examination. The system provided by the commission may provide for reevaluation by the testing service or by any other person. Sec. 08.88.200. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.201. Reexamination. A person who fails an examination may apply for a subsequent examination, but shall pay the application fee with each application. Sec. 08.88.210. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.211. Qualification for examination. [Repealed, § 42 ch 167 SLA 1980. For current law, see AS 08.88.171 .] Sec. 08.88.220. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.221. Fees. The Department of Commerce, Community, and Economic Development shall set fees under AS 08.01.065 for a real estate broker, associate broker, or salesperson licensee or applicant for the following: (1) examination; (2) initial license; (3) renewal of an active license; (4) renewal of an inactive license; (5) amending or transferring a license; (6) publications offered by the commission; (7) seminars offered by the commission; (8) reinstatement of a lapsed license; (9) changes to registered office information; (10) course certification and recertification; (11) instructor approval and renewal of approval; and (12) issuance of a new license document under AS 08.88.095 (d). Sec. 08.88.230. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.231. Deposit in general fund. [Repealed, § 9 ch 74 SLA 1987.] Sec. 08.88.240. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.241. Reinstatement of lapsed license. (a) A person whose real estate license has lapsed less than 24 months is eligible for reinstatement of the license if the person provides the required application, license fees, proof of continuing education as required by AS 08.88.091 for licensing periods during which the license was inactive or lapsed, proof of completion of the educational requirements under AS 08.88.095 (a), if applicable, and any fee required under AS 08.88.221 (12). (b) A real estate licensee whose license has been lapsed for more than 24 months is not eligible for reinstatement of the license and is eligible for the license only by meeting the qualifications applicable to initial licensure under AS 08.88.171 . Sec. 08.88.250. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.251. Inactive license. (a) A real estate licensee who intends to become inactive shall return to the commission the person's license certificate and a completed inactivation form provided by the commission along with any applicable fees. The commission shall issue the person an inactive license certificate. A real estate licensee whose license lapses under AS 08.88.095 (e) is not eligible for an inactive license under this subsection unless the license is reinstated under AS 08.88.241 . (b) An inactive licensee may not attempt or offer to do any of the activities listed in AS 08.88.161 , but may receive commissions or other payments from the broker who previously contracted with or employed the licensee for services performed while actively licensed. (c) A person who has an inactive license certificate under (a) of this section may reactivate the license by applying for an active license and paying the required fees. A person is eligible for change from an inactive to an active status under this subsection only if the person has been in inactive status for less than 24 months. If the person has been in inactive status for 24 months or for more than 24 months, the person is required to meet the requirements for initial licensure in order to be licensed under this chapter again. (d) A licensee may, subject to the approval of the commission, renew an inactive license for 24 months from the anniversary date of the issuance of the initial inactive license certificate under (a) of this section. (e) An active license that has been converted from inactive status under (c) of this section shall be issued for the remainder of the current 24-month period of the inactive license. Sec. 08.88.260. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.261. Out-of-state licenses. [Repealed, § 7 ch 105 SLA 1990.] Article 3. Miscellaneous Provisions. Sec. 08.88.263. License by endorsement. A person who holds a valid active real estate license issued by another state shall be granted an equivalent Alaska real estate license if that person (1) passes the portion of the real estate examination which examines on state law; (2) meets the requirements of AS 08.88.171 ; and (3) satisfies the educational requirements under AS 08.88.095 (a) if the person has not held the license issued by the other state for one year or more. Secs. 08.88.270 — 08.88.280. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.281. Real estate recovery fund. Before issuing a license to an applicant under this chapter, the commission shall ensure that the applicant has complied with the provisions of AS 08.88.455 and is covered by the real estate recovery fund established in AS 08.88.450 . Sec. 08.88.290. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.291. Location; contact information. (a) A person licensed as a real estate broker shall, by registering with the commission, inform the commission of the person's principal office and of any branch offices of the person's real estate business and include in the information the names of the real estate licensees who are employed at each office. A real estate licensee may do real estate business only through a principal office or from a branch office registered by the broker by whom the licensee is employed. Failure of a real estate broker to maintain a place of business in the state or to inform the commission of its location and the names and addresses of all real estate licensees employed at each location by the broker is grounds for the suspension or revocation of the broker's license. (b) Each licensee under this chapter is responsible for ensuring that the commission has current contact information for the licensee for two years after the lapse, expiration, surrender, suspension, or revocation of the license. (c) In addition to the information provided under (a) of this section, a licensee shall provide the commission with a current mailing address and, if active, the address of the broker employing the licensee. (d) The commission shall mail all notices pertaining to a license or recovery fund action taken under this chapter or a regulation adopted under this chapter to the current address or addresses of a licensee obtained under this section. Proof of notice provided under this subsection satisfies due process notice requirements. Sec. 08.88.300. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.301. Change of location. Before a real estate broker changes the location of the broker's principal office or of a branch office, the broker shall notify the commission of the new address and any other office changes on a form provided by the commission and pay the applicable fees. Sec. 08.88.305. Multiple business operations. A person licensed as a real estate broker may own, operate, or be employed by multiple corporations, partnerships, or other business organizations engaging in activities for which a license is required under this chapter, provided that each business organization is registered with the commission, and that the principal offices of all of the business organizations share a single physical address. Sec. 08.88.310. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.311. Branch offices. (a) A branch office shall be under the direct supervision of a real estate associate broker whose principal place of business is that office and who is licensed under this chapter. An associate broker may serve in the capacity of direct supervisor at only one office. (b) A branch office shall bear and be advertised only in the name of the principal office but may also indicate that it is a branch office. Sec. 08.88.320. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.321. Possession and display of license certificates. (a) The license certificate of a real estate broker shall be displayed in the broker's principal office. (b) The license certificate of each licensee working in the broker's principal office shall be displayed in that office. (c) The license certificate of the designated associate broker who is in charge of a branch office and the certificate of each licensee working in a branch office shall be displayed in the branch office indicated as the office of the licensees' employment in the registration required under AS 08.88.291 . (d) Certificates displayed under this section must be displayed where they are available for public clients and customers to verify the current active status of licensees working in the office. Sec. 08.88.330. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.331. Making of transactions. An active real estate salesperson or associate real estate broker may perform activities for which a real estate license is required only through the real estate broker who employs or contracts with the licensee. All money or other proceeds collected in trust and related to a real estate transaction shall immediately be turned over to the broker or the broker's authorized representative. Sec. 08.88.340. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.341. Listings or management contracts. All real estate listings or management contracts must be in writing and must be signed by the broker or associated licensee of the broker and by the client or an authorized representative of the client for whose benefit the real estate licensee will act. All real estate exclusive listings or management contracts must have a definite expiration date that may be renewed or extended only by a written agreement signed by the client or the client's authorized representative. Sec. 08.88.350. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.351. Accounts; records of transactions. (a) A real estate broker shall (1) keep a complete record, for three years, of all real estate transactions in which the broker or employed licensees of the broker engaged; (2) provide upon request to any principal in a transaction an accounting for all money or other property collected or held in the course of each transaction; (3) keep a separate trust account in a bank into which the broker shall deposit all earnest money deposits, purchase money, security deposits, contingency funds, collected rental money, rental receipts, or other money collected in trust until it is appropriate for the broker to distribute the money to the proper persons; (4) if authorized by the board of directors of a community association to collect, control, or disburse association funds, keep a separate account in a financial institution for the funds; (5) make available to the commission, on request, account records and all other documents that the commission may require in order to conduct an investigation or to audit an account required under this section; (6) if records are delivered to a partnership, corporation, or business entity other than another licensed broker upon termination of employment, ensure by contract the maintenance and availability of those records for a minimum of three years in accordance with this section. (b) A real estate licensee (1) shall keep, for a minimum of three years, a complete record of all real estate transactions in which the licensee was a principal; (2) who maintains records concerning management or sale of the licensee's own properties or the licensee's client properties separate from the broker's file, shall retain those records for a minimum of three years; (3) shall make available to the commission, on request, records and other documents that the commission may require to conduct an investigation; (4) shall promptly deposit community association funds or proceeds from periodic community association assessments into either a community association reserve account or a community association operating account; if, at any time, the community association operating account contains more money than is estimated to be needed for budgeted expenditures for the subsequent three months, the licensee shall transfer the excess funds to the community association reserve account as soon as practicable; (5) may not commingle funds of a community association with funds of another community association or with the licensee's funds. (c) For the purposes of this section, the three-year requirement for records maintenance begins at the initiation of a transaction and continues, as applicable, until three years after the date (1) a listing agreement ends;

(2) a sales transaction closes or otherwise ends; (3) a management contract ends; or (4) another contractual or fiduciary obligation ends. Sec. 08.88.360. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.361. When commission is earned. A commission is earned when the real estate broker fulfills the terms of a written personal services contract. Sec. 08.88.370. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.371. [Renumbered as AS 08.88.071 (c).] Sec. 08.88.380. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.381. Signs. A real estate broker shall maintain a sign at each of the broker's registered real estate offices prominently showing the name of the real estate business as registered with the commission. The required size, content, and location of signs under this section may be determined by the commission under regulations. The regulations must allow signs in offices located on premises with more restrictive sign requirements than would otherwise be applicable under the commission's regulations to be considered to be in compliance with the regulations if the signs meet the requirements of the premises and the licensee submits a copy of the sign requirements of the premises to the commission. Sec. 08.88.390. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.391. Conflict of interest. (a) A real estate licensee who has a conflict of interest relating to a real estate transaction shall disclose that conflict of interest to the persons adversely affected by the conflict or their real estate licensees and confirm the conflict of interest in writing to the persons adversely affected by the conflict or their real estate licensees involved in the transaction as soon as possible after the conflict is identified. The licensee must also verbally advise the person of the conflict, and begin any written statement of the conflict of interest with these words, underlined and written in bold: “Disclosure of Conflict of Interest.” (b) The failure of a licensee to disclose a conflict of interest as required under this section does not give rise to a cause of action by a private person. However, the commission may, under AS 08.88.071 , impose a disciplinary sanction for violation of this section. (c) In this section, “conflict of interest” is when a licensee (1) has a present ownership or leasehold interest in the property that is the subject of a transaction; (2) is whole or part owner of a business interest in the property being marketed or considered for purchase or lease; (3) represents a relative, as defined in AS 08.88.900 (a)(19), or a person with whom the licensee has a financial relationship if the relative or person has a present financial interest in the property being marketed or considered for purchase or lease; (4) receives compensation from someone other than a party to the contract or another party having a financial interest in the transaction; or (5) receives compensation for community association management while simultaneously engaged as a property manager for a unit within the community association. Sec. 08.88.396. Licensee relationships, disclosures, and activity before January 1, 2005. (a) A person licensed under this chapter shall, when acting as a real estate licensee for a prospective seller or lessor of real estate, (1) disclose in writing the licensee's agency relationship with the seller or lessor to each prospective buyer or lessee at the time that the licensee begins to provide specific assistance to locate or acquire real estate for the buyer or lessee, and obtain from each prospective buyer or lessee a signed acknowledgment that the buyer or lessee is aware of the agency relationship between the licensee and the seller or lessor; and (2) include in the purchase agreement a statement of the agency relationship between the licensee and the seller or lessor. (b) A person licensed under this chapter shall, when acting as a real estate licensee for a prospective buyer or lessee of real estate, (1) disclose the licensee's relationship with the buyer or lessee to a prospective seller or lessor of real estate, or to the seller's or lessor's real estate licensee, at the time of the initial contact between the licensee and the prospective seller or lessor, or the seller's or lessor's real estate licensee, and confirm the relationship in writing as soon as possible after the initial contact; (2) include in the purchase agreement a statement of the agency relationship between the licensee and the buyer or lessee; (3) if the prospective seller or lessor has an unexpired exclusive listing contract for a property, present all offers to purchase that property through the seller's or lessor's real estate licensee; and (4) disclose in writing to all parties to a transaction when the licensee's compensation as real estate licensee for the buyer or lessee is to be paid by anyone other than the buyer or lessee being represented by the licensee. (c) A person licensed under this chapter may act as a real estate licensee for both a prospective seller or lessor and a prospective buyer or lessee of real estate only after the licensee informs both the seller or lessor and the buyer or lessee of the dual agency representation and obtains written consent to the dual agency representation from both principals. (d) When a change occurs during a transaction that makes a prior written disclosure required by this section incomplete, misleading, or inaccurate, the licensee shall make a revised disclosure, in writing, to all parties to the transaction as soon as possible. The revised disclosure must include the date of the revision and shall be acknowledged in writing by all the parties. However, until the nature of the licensee's relationship with a party is completely established, a revised disclosure is not required under this subsection if the licensee obtains from the party a written preauthorized consent to changes before the changes occur. (e) In a civil action for the failure of a licensee to comply with the provisions of this section, the plaintiff's remedy is limited to the recovery of actual damages. This subsection does not limit a person's ability to take any other action or pursue any other remedy to which the person may be entitled under other law. (f) This section applies only to acts that occur before January 1, 2005. Sec. 08.88.398. Licensed assistants. A licensed real estate salesperson or licensed associate real estate broker may act as a licensed assistant to another licensed salesperson or associate real estate broker only if (1) the licensed assistant and the salesperson or associate broker are both employed by the same broker; (2) the licensed assistant is not employed to perform activities requiring licensure under this chapter for more than one licensed real estate broker; (3) the employment arrangement between the licensed assistant and the salesperson or associate real estate broker is in writing and conforms to the applicable state and federal regulations regarding employment; (4) the employment of the licensed assistant is approved in writing by the broker who employs both the salesperson or associate real estate broker and the licensed assistant; (5) the salesperson or associate real estate broker who employs the licensed assistant agrees to be responsible for paying the licensed assistant's wages and appropriate taxes and completing the appropriate state and federal tax forms; and (6) the broker of the salesperson or associate real estate broker who employs the licensed assistant agrees to be liable for the actions of the licensed assistant. Sec. 08.88.400. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.401. Prohibited conduct; penalties. (a) A person licensed under this chapter may not falsely represent to (1) have been awarded a degree or other designation; (2) be a member or an affiliate of a professional organization; or (3) be a member of a franchise or other business association. (b) A person (1) who is not a real estate broker licensed in this state may not accept a fee or a commission for performance of an act for which a license is required by this chapter except that a real estate broker validly licensed in another state may accept a fee or commission or a portion of a fee or commission for assisting a real estate broker licensed in this state in the performance of an act for which a license is required by this chapter; (2) who is an associate broker or a real estate salesperson licensed in this state may accept a fee or commission for performance of an act for which a license is required by this chapter only from the licensee's employing broker, except that the wages of a person who is engaged as a licensed assistant under AS 08.88.398 may be accepted by the person from the assistant's employer. (c) A person licensed under this chapter may not knowingly make, authorize, direct, or aid in the publication of a false statement or misrepresentation concerning land or a subdivision or other real estate offered for sale, lease, or rent or concerning an association being managed. (d) A person licensed under this chapter may not knowingly pay any part of a fee, commission, or other compensation received by the licensee in buying, selling, exchanging, leasing, auctioning, or renting real estate to (1) a person who is not licensed under this chapter, except as provided in (e) of this section; (2) another licensee, except through the licensee's responsible broker; or (3) another licensee knowing that the other licensee intends to pay all or a portion of that which is received to a person who is not licensed under this chapter. (e) The prohibition of (d)(1) of this section does not prohibit (1) payments by a licensee to a person licensed to perform real estate activities in another jurisdiction if the other person has assisted the licensee in the performance of an act for which a license is required by this chapter; (2) payments from a real estate licensee to a principal as part of the resolution of a dispute regarding the terms of a transaction or regarding the property transferred; or (3) contributions from a licensee to a charitable organization and advertisement of the licensee's intent to make the charitable donation. (f) A person may not (1) use or attempt to use a license issued under this chapter that was issued to another person; (2) give false or forged evidence to the commission or to a representative of the commission in an attempt to obtain a license; (3) impersonate an applicant under this chapter; (4) knowingly use or attempt to use an expired, suspended, revoked, or nonexistent license; or (5) falsely claim to be licensed and authorized to practice under this chapter. (g) A person who violates this section or AS 08.88.161 is guilty of a class A misdemeanor. Sec. 08.88.403. Review of transactions. A real estate broker may contract with and pay an attorney or associate broker to assist the broker to review a real estate transaction before the transaction closes. Sec. 08.88.405. Preparation of documents. Notwithstanding AS 08.08 , a person licensed as a real estate broker, associate real estate broker, or real estate salesperson under this chapter may prepare real property contracts, earnest money agreements, leases, and other documents related to real property if the documents are prepared by the person in the course of the person's work as a licensed real estate broker, associate real estate broker, or real estate salesperson under this chapter. Secs. 08.88.410 — 08.88.420. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.421. [Renumbered as AS 08.88.900 .] Sec. 08.88.430. [Repealed, § 3 ch 95 SLA 1964.] Sec. 08.88.431. [Renumbered as AS 08.88.990 .] Sec. 08.88.440. [Repealed, § 3 ch 95 SLA 1964.] Article 4. Real Estate Recovery Fund. Sec. 08.88.450. Real estate recovery fund. (a) The real estate recovery fund is established in the general fund to carry out the purposes of AS 08.88.450 — 08.88.495. The fund is composed of payments made by real estate licensees under AS 08.88.455 , filing fees retained under AS 08.88.460 , income earned on investment of the money in the fund, and money deposited in the fund under (c) of this section. Money in the fund does not lapse. The commission may make payments from the fund for awards from the fund under AS 08.88.450 — 08.88.495, for hearing and legal expenses directly related to fund operations and claims, and for real estate educational purposes. (b) The Department of Commerce, Community, and Economic Development shall provide the commission every three months with a statement of the activities of, balances in, interest earned on, and interest returned to the real estate recovery fund. (c) If money from the real estate recovery fund is expended to prepare, print, manufacture, sponsor, produce, or otherwise provide an item or a service to a member of the public, to a real estate licensee, to a potential real estate licensee, or to another person, any money paid by the person to the commission, either directly or through an agent or contractor of the commission, to receive the item or service shall be deposited in the fund. In this subsection, “an item or a service” includes an information pamphlet, an examination preparation packet, an educational course, the certification of a real estate education course, and the approval of a real estate education instructor. Sec. 08.88.455. Payments by real estate licensees. (a) A real estate licensee, when applying for or renewing a real estate license, in lieu of obtaining a corporate surety bond, shall pay to the commission, in addition to the license fee, a recovery fund fee not to exceed $125. After each two-year licensing cycle, if the commission finds that the average balance in the recovery fund during the two-year licensing cycle was less than $250,000 or more than $500,000, the commission shall by regulation adjust the recovery fund fees so that the average balance of the recovery fund during the next two-year licensing cycle is anticipated to be an amount that is not less than $250,000 or more than $500,000. In this subsection, “average balance” means the average balance after taking into account anticipated expenditures for awards from the fund and legal expenses directly related to fund operations, and for real estate educational purposes. (b) All fees collected under this section shall be paid at least once a month by the department into the general fund. These payments shall be credited to the real estate recovery fund. Sec. 08.88.460. Claim for payment. (a) Subject to (e) of this section, a person seeking an award from the recovery fund for a loss suffered in a real estate transaction as a result of fraud, an intentional tort, deceit, or the conversion of trust funds or the conversion of community association accounts under the control of a community association manager on the part of a person licensed under this chapter shall (1) obtain a final judgment from a court of competent jurisdiction, a final arbitration award, or a settlement agreement with a licensee that involves a person committing fraud, an intentional tort, deceit, the conversion of trust funds, or the conversion of community association accounts; (2) submit an affidavit describing the efforts made to collect the final judgment, final arbitration award, or settlement agreement stating that the person has used due diligence to collect the amount due, stating that the judgment, arbitration award, or settlement agreement is uncollectable using reasonable efforts, and that the conduct that is the subject of the judgment, arbitration award, or settlement agreement involved an activity for which a person must obtain a license under AS 08.88.161 ; (3) make a claim to the commission for an award from the recovery fund on a form furnished by the commission; in order to be eligible for an award by the commission, the claim form must be filed within two years after the date a judgment, arbitration award, or settlement agreement that is the basis for the award from the recovery fund is no longer subject to appeal; the form must be executed under penalty of unsworn falsification in the second degree and must include (A) the name and address of each real estate licensee involved; (B) a copy of the final judgment, final arbitration award, or settlement agreement; (C) a copy of the affidavit asserting due diligence but lack of success in collecting the entire amount due; (D) the amount of the final judgment, final arbitration award, or settlement agreement that remains unpaid; (E) the name and address of the claimant; and (F) a general statement of facts relative to the claim. (b) The commission shall send a copy of a claim filed under (a) of this section to each real estate licensee named in (a)(3) of this section. (c) [Repealed, § 24 ch 113 SLA 2008.] (d) A claimant under this section shall pay a filing fee of $250 to the commission at the time the claim is filed. The filing fee shall be refunded if the (1) commission makes an award to the claimant from the real estate recovery fund; or (2) claimant withdraws the claim. (e) If the claim is for a loss incurred as a result of acts or omissions occurring in the course of the licensee's practice of community association management, only the owners' association for which the real estate licensee practices community association management may file a claim under this section. Sec. 08.88.465. Consideration of application. (a) If the commission receives a claim for an award from the recovery fund that complies with the requirements of AS 08.88.450 — 08.88.495, the commission shall make an award from the recovery fund in an amount not to exceed $15,000. Not more than $15,000 may be paid for each transaction, regardless of the number of persons injured or the number of parcels of real estate involved in the transaction. (b) [Repealed, § 24 ch 113 SLA 2008.] (c) [Repealed, § 24 ch 113 SLA 2008.] (d) [Repealed, § 24 ch 113 SLA 2008.] (e) [Repealed, § 24 ch 113 SLA 2008.] (f) [Repealed, § 24 ch 113 SLA 2008.] Sec. 08.88.470. Findings and payment. [Repealed, § 24 ch 113 SLA 2008.] Sec. 08.88.472. Fund operations; charges against fund. (a) The commission may charge the real estate recovery fund for expenses related to fund operations. The commission shall deposit into the real estate recovery fund amounts recovered for these expenses from the licensee under AS 08.88.071 (b) or from other parties under AS 08.88.490 . (b) [Repealed, § 24 ch 113 SLA 2008.] (c) [Repealed, § 24 ch 113 SLA 2008.] (d) If the salary of an employee is entirely or partially paid for from money in the real estate recovery fund, the employee may perform administrative duties for the commission in addition to any duties the employee performs that are related to the real estate recovery fund. AS 08.88.910 does not apply to this subsection. Sec. 08.88.474. Payment of small claims judgment. [Repealed, § 24 ch 113 SLA 2008.] Sec. 08.88.475. Maximum liability. (a) The maximum liability of the real estate recovery fund may not exceed $50,000 for any one real estate licensee. (b) If the $50,000 liability of the fund as provided in (a) of this section is insufficient to pay in full the valid claims of all persons who have obtained a final judgment, final arbitration award, or settlement agreement involving an individual licensee and have filed claims for an award from the recovery fund, the $50,000 shall be distributed among the claimants in the ratio that their individual claims bear to the aggregate of valid claims, or in another manner that the commission considers equitable. Distribution shall be among the persons entitled to share in the recovery without regard to the order in which their claims were filed. Sec. 08.88.480. Order of claim payment. If the money deposited in the real estate recovery fund is insufficient at a given time to satisfy a legally authorized claim against the fund, the commission shall, when sufficient money has been deposited in the fund and appropriated, satisfy unpaid claims in the order that the claims were originally filed, plus accumulated interest at the rate of eight percent a year. Sec. 08.88.485. False claims or documents. A person who files with the commission a notice, statement, or other document required under this chapter that contains a wilful material misstatement of fact, is guilty of a misdemeanor and is punishable by imprisonment for a period of not more than one year, or a fine of not more than $1,000, or by both. Sec. 08.88.490. Right to subrogation. When the commission has paid to a claimant from the real estate recovery fund the sum awarded by the commission, the commission shall be subrogated to all of the rights of the claimant to the amount paid, and the claimant shall assign all right, title, and interest in that portion of the claim to the commission. Money collected by the commission on the claim shall be deposited to the real estate recovery fund. Sec. 08.88.495. Disciplinary action. Repayment in full of all obligations to the real estate recovery fund does not nullify or modify the effect of disciplinary proceedings brought under the provisions of this chapter. Sec. 08.88.500. Definition. [Repealed, § 14 ch 14 SLA 1987; former AS 08.88.500 was repealed by § 3, ch. 95, SLA 1964.] Secs. 08.88.510 , 08.88.520. [Repealed, § 3 ch 95 SLA 1964.] Article 5. License Relationships and Duties. Sec. 08.88.600. Licensee relationships. (a) A real estate licensee who provides real estate services to one party in a real estate transaction represents only that party unless the parties to the transaction agree otherwise in writing. (b) A real estate licensee may not provide real estate services to more than one party in the same real estate transaction, except that (1) a licensee may represent one party to the transaction while providing specific assistance to an unrepresented party to the transaction; (2) a licensee may act as a neutral licensee under (c) of this section; (3) a licensee may also, with the written consent of the parties, be a party to the transaction; or (4) the parties to the transaction may agree otherwise in writing, except as provided by AS 08.88.625 . (c) A real estate licensee may provide specific assistance to both the seller and buyer, or both the lessor and lessee, in the same real estate transaction as a neutral licensee if the licensee complies with AS 08.88.610 . (d) A real estate licensee who works for a real estate broker may represent or provide specific assistance to a person in a real estate transaction even if the broker or another licensee who is working for the broker represents or provides specific assistance to another person in the same transaction. The broker shall designate which licensee, including the broker, is the designated licensee for the seller or lessor and which licensee, including the broker, is the designated licensee for the buyer or lessee. Sec. 08.88.605. Additional licensee relationship provisions. (a) A real estate licensee may provide real estate services to a party in separate real estate transactions under different licensee relationships if the licensee complies with AS 08.88.600 — 08.88.695 when establishing the relationship for each transaction. (b) The authorization under (a) of this section includes acting as a real estate licensee for a party in one real estate transaction and at the same time not representing that party in a different real estate transaction involving that party. Sec. 08.88.610. Authorization of neutral licensee relationship. (a) Before a real estate licensee begins acting as a neutral licensee, the real estate licensee may obtain preauthorization from a person to act as a neutral licensee in the person's real estate transaction by obtaining the written consent of the person. (b) If preauthorization is not obtained under (a) of this section, when a buyer or lessee expresses an interest to the licensee in acquiring or leasing real estate and the licensee is representing the seller or lessor of the property, the licensee shall obtain written consent to act as a neutral licensee before the licensee shows the real estate. (c) A written consent under this section must be provided on a separate form, may not be contained in another writing, and must be entitled “Waiver of Right To Be Represented.” Sec. 08.88.615. Duties owed by licensee in all licensee relationships. (a) Unless additional duties are agreed to in a written document signed by the person, and regardless of the type of licensee relationship in which the real estate licensee is acting, a real estate licensee owes the following duties to each person to whom the licensee provides specific assistance: (1) the exercise of reasonable skill and care; (2) honest and good faith dealing; (3) the presentation of all written offers, written notices, and other written communications to and from the person in a timely manner regardless of whether the real estate is subject to an existing contract for sale or lease or the person is already a party to an existing contract to buy or lease real estate; (4) except as provided in (b) of this section, the disclosure of all material information known by the licensee regarding the physical condition of real estate if the information substantially adversely affects the real estate or a person's ability to perform the person's obligations in the real estate transaction or if the information would materially impair or defeat the purpose of the real estate transaction; (5) accounting in a timely manner for all money and other property received from or on behalf of the person; (6) before the licensee provides specific assistance to the person, or when entering into a contract with the person to provide specific assistance, providing a copy of the pamphlet established under AS 08.88.685 (b)(2) and produced under AS 08.88.685 (c) that outlines the duties of the types of licensee relationships identified under AS 08.88.600 ; (7) before the licensee provides specific assistance to the person, obtaining from the person a document signed by the person that discloses the licensee's relationship with the person; (8) in addition to the document provided under (7) of this subsection, providing to the person when the person signs an offer in a real estate transaction handled by the licensee a written statement that states whether the licensee represents the buyer, represents the seller, represents the lessee, represents the lessor, or provides specific assistance to both the buyer and the seller or both the lessee and the lessor as a neutral licensee; the statement must be contained in a separate paragraph entitled “Licensee Relationships” in the contract between the buyer and seller or the lessee and lessor, or in a separate document entitled “Licensee Relationships.” (b) The disclosure requirements of (a)(4) of this section may not be construed to imply a duty to (1) investigate a matter that (A) the licensee has not agreed to investigate; or (B) is not known by the seller, prospective buyer, lessor, prospective lessee, or licensee; or (2) disclose, unless otherwise provided by law, events that have occurred on the real estate that might affect whether a person wants to buy or lease the real estate. (c) Notwithstanding (b)(2) of this section, before a buyer makes or accepts an offer in a real estate transaction, a real estate licensee shall disclose to the buyer that a murder or suicide occurred on the real property that is the subject of the real estate transaction if (1) the murder or suicide occurred within one year before the date that the licensee first showed the real estate to the buyer; and (2) the licensee is aware that the murder or suicide occurred on the real estate. Sec. 08.88.620. Duties owed by licensee representing a person. Unless additional duties are agreed to in a written document signed by the person represented by the licensee, a real estate licensee who represents the person owes the person the following duties in addition to the other duties imposed by AS 08.88.615 : (1) not taking action that the licensee knows is adverse or detrimental to the interest of the represented person in a real estate transaction; (2) disclosure of a conflict of interest to the represented person in a timely manner; (3) advising the represented person to obtain expert advice on a matter that relates to the real estate transaction that is beyond the licensee's expertise; (4) not disclosing confidential information from or about the represented person without written consent, except under a subpoena or another court order, even after termination of the licensee's relationship with the represented person; (5) if the represented person is a seller or a lessor, unless otherwise agreed to in writing, making a good faith and continuous effort to find a buyer or lessee for the real estate of the seller or lessor, except that a licensee is not required to seek additional offers to buy or lease the real estate while the real estate is subject to an existing contract for sale or lease; and (6) if the represented party is a buyer or a lessee, unless otherwise agreed to in writing, making a good faith and continuous effort to find real estate for the buyer or lessee, except that a licensee is not obligated to (A) seek additional real estate to buy or lease for the buyer or lessee while the buyer or lessee is a party to an existing contract to buy or lease real estate; or (B) show to the buyer or lessee real estate for which there is not a written agreement to pay compensation to the licensee. Sec. 08.88.625. Waiver of duties. A real estate licensee or a person to whom a licensee provides specific assistance may not waive the duties identified under AS 08.88.615 and 08.88.620, except as otherwise allowed under AS 08.88.620 (5) and (6). Sec. 08.88.630. Duties not owed by licensee. Unless agreed otherwise, a real estate licensee does not owe a duty to a person with whom the licensee has established a licensee relationship to (1) conduct an independent inspection of the real estate that is the subject of the licensee relationship; (2) conduct an independent investigation of a person's financial condition; or (3) independently verify the accuracy or completeness of a statement made by a party to a real estate transaction or by a person reasonably believed by the licensee to be reliable. Sec. 08.88.635. Acts not amounting to adverse or detrimental acts or conflicts of interest. (a) If a licensee shows real estate not owned or leased by the seller or lessor to prospective buyers or lessees or lists competing properties for sale or lease, this activity does not by itself constitute action that is adverse or detrimental to the seller or lessor or create a conflict of interest under AS 08.88.391 . (b) The representation of more than one seller or lessor by the same licensee or by different licensees working for the same real estate broker in competing transactions involving the same buyer or lessee does not by itself constitute action that is adverse or detrimental to the sellers or lessors or create a conflict of interest under AS 08.88.391 . (c) If a licensee shows real estate in which the buyer or lessee is interested to other prospective buyers or lessees, this activity does not by itself constitute action that is adverse or detrimental to the buyer or lessee or create a conflict of interest under AS 08.88.391 . (d) The representation of more than one buyer or lessee by the same licensee or by different licensees working for the same real estate broker in competing transactions involving the same seller or lessor does not by itself constitute action that is adverse or detrimental to the sellers or lessors or create a conflict of interest under AS 08.88.391 . (e) Acting as a neutral licensee in compliance with AS 08.88.600 — 08.88.695 does not by itself constitute action that is adverse or detrimental to a seller, lessor, buyer, or lessee or create a conflict of interest under AS 08.88.391 . (f) A real estate licensee who discloses confidential information to the licensee's broker for the purpose of seeking advice or assistance for the benefit of the person to whom the licensee is providing specific assistance does not breach the licensee's duty of confidentiality to the person, but the licensee's broker has a duty to maintain the confidentiality of the information. Sec. 08.88.640. Designated licensee relationship. (a) Unless the broker is the designated licensee, the relationship, including the duties, obligations, and responsibilities of the relationship, established between a person and a designated real estate licensee does not extend to the real estate broker for whom the designated licensee is working, to another real estate licensee who works for the same real estate broker, or to an owner of the business that employs the real estate broker. The extent or limitations of the relationship between the broker with the designated licensee shall be disclosed to the parties to a real estate transaction. (b) A real estate broker may have a different designated licensee working for a seller or lessor and for the buyer or lessee in the same real estate transaction. Having a different designated licensee working for a seller or lessor and for the buyer or lessee in the same real estate transaction does not create dual agency or a conflict of interest for the real estate broker or for a licensee employed by the same real estate broker. (c) A designated real estate licensee may represent or provide specific assistance to a person who is a seller or lessor in one real estate transaction while representing or providing specific assistance to the person as a buyer or lessee in another real estate transaction. (d) Unless the broker is the designated licensee, when a designated licensee represents or provides specific assistance as a designated licensee to a person in a real estate transaction, the knowledge received by the designated licensee while representing or providing specific assistance to the person is not imputed to the real estate broker for whom the designated licensee works, to another real estate licensee employed by or under contract to the broker, or to an owner of the business that employs the real estate broker. (e) This section may not be construed to limit the responsibility of a real estate broker, or of an owner of a business that employs the real estate broker, to supervise designated licensees who work for the broker or who work for the business that employs the broker, or to shield the broker or business from vicarious liability for the acts of the designated licensees. Sec. 08.88.645. Duties of neutral licensee. (a) Unless additional duties are agreed to in a written document signed by the neutral licensee and the seller, buyer, lessor, or lessee, the duties of a neutral licensee are limited to the duties established for real estate licensees under AS 08.88.615 and the following duties: (1) not to take action that the neutral licensee knows is adverse or detrimental to the interest of the persons to whom the neutral licensee provides services in the real estate transaction; (2) to disclose a conflict of interest in a timely manner to all parties to whom the licensee provides specific assistance; (3) to advise all parties to whom the licensee provides specific assistance for the transaction to obtain expert advice on a matter relating to the transaction that is beyond the expertise of the neutral licensee; (4) not to disclose without written consent confidential information from or about any of the parties to whom the licensee is providing specific assistance to another party to whom the licensee is providing specific assistance in the transaction, except under a subpoena or another court order, even after the relationship with the party terminates; (5) not to disclose without the consent of the person to whom the information relates (A) that the buyer or lessee is willing to pay more than the price offered for the real estate; (B) that the seller or lessor is willing to accept less than the asking price for the real estate; or (C) that the seller, buyer, lessor, or lessee will agree to financing terms other than those terms offered. (b) A neutral licensee does not violate the duties of a neutral licensee if, with written consent, the neutral licensee engages in the following conduct in a good faith effort to assist in reaching final agreement in a real estate transaction: (1) analyzing, providing information on, or reporting on the merits of the transaction to each party; (2) discussing the price, terms, or conditions that each party would or should offer or accept; or (3) suggesting compromises in the parties' respective bargaining positions. Sec. 08.88.650. No imputation of knowledge resulting from neutral licensee relationship. In a neutral licensee relationship, the knowledge or information of the licensee about one client is not imputed to other clients or to other licensees who work for the same real estate broker. Sec. 08.88.655. Compensation. (a) A real estate broker may be compensated by any party to a real estate transaction, by a third party, or by one or more of the parties to the transaction splitting or sharing the compensation. (b) The payment of compensation to a real estate broker may not be construed to establish a relationship between the broker and the party who pays the compensation. (c) If a real estate licensee provides specific assistance or enters into a personal services contract to act as a real estate licensee for a person, or if a seller and buyer, or a lessor and lessee, enter into a contract to sell, buy, or lease real estate, the real estate licensee shall disclose which party the licensee anticipates will be paying compensation to the real estate brokers in the real estate transaction. (d) A real estate licensee shall include in a contract to sell, buy, or lease real estate a statement indicating which party is paying compensation to the real estate brokers in the real estate transaction. Sec. 08.88.660. Duration of relationship. (a) A licensee relationship with a buyer, lessee, seller, or lessor begins when the licensee represents or provides specific assistance to the buyer, lessee, seller, or lessor and continues until the earliest of the following events occurs: (1) the licensee completes the representation or specific assistance; (2) the relationship term agreed on by the buyer, lessee, seller, or lessor terminates; (3) the licensee and the parties to the relationship terminate the relationship by mutual agreement; or (4) a party to the relationship terminates the relationship by giving notice to the other party. (b) The termination of a relationship under (a)(3) or (4) of this section only terminates the licensee relationship and does not affect other contractual rights of the parties to the licensee relationship. (c) Except as otherwise agreed to in writing, a licensee does not owe a further duty to a buyer, lessee, seller, or lessor after termination of the licensee relationship, except for the duties of accounting for all money and other property received during the relationship and not disclosing confidential information. Sec. 08.88.665. Vicarious liability. A seller, buyer, lessor, or lessee is not liable for an act, error, or omission of a real estate licensee that arises out of the licensee relationship, (1) unless the seller, buyer, lessor, or lessee participated in or authorized the act, error, or omission and then only to the extent of the participation or authorization; or (2) except to the extent that the seller, buyer, lessor, or lessee benefited from the act, error, or omission, and a court determines that it is highly probable that the person claiming damages for the act, error, or omission would be unable to enforce a judgment against the licensee. Sec. 08.88.670. Imputed knowledge and notice. (a) Unless otherwise agreed to in writing, a seller, buyer, lessor, or lessee is not considered to have knowledge or notice of a fact known by a real estate licensee of the seller, buyer, lessor, or lessee unless the fact is actually known by the seller, buyer, lessor, or lessee. (b) Unless otherwise agreed to in writing, a real estate licensee does not have knowledge or notice of a fact that is not actually known by the licensee. Sec. 08.88.675. Common law abrogated. The common law of agency related to real estate licensee relationships in real estate transactions is expressly abrogated to the extent inconsistent with AS 08.88.600 — 08.88.695. Sec. 08.88.680. Causes of action. (a) A person may not bring an action against a neutral licensee for making a disclosure that is required or permitted under this chapter. (b) In a civil action for the failure of a licensee to comply with the provisions of AS 08.88.600 — 08.88.695, the plaintiff's remedy is limited to the recovery of actual damages. This subsection does not limit a person's ability to take any other action or pursue any other remedy to which the person may be entitled under other law. Sec. 08.88.685. Policies, guidelines, and requirements. (a) A broker shall adopt written policies and procedures available to the commission and to members of the public on request that (1) require real estate licensees to comply with all real estate laws; (2) require real estate licensees to act fairly and honestly in all dealings; (3) require real estate licensees to notify the broker or a broker designee of any legal dispute or allegation of wrongdoing from a seller, buyer, lessor, or lessee; (4) require real estate licensees to maintain regular communication with the broker or a broker designee; and (5) identify and describe the relationships in which the broker and the real estate licensees who work for the broker may engage with a seller, buyer, lessor, or lessee. (b) The commission shall adopt regulations that establish (1) guidelines to assist a broker to adopt the written policy required by (a) of this section; (2) the contents and format of the pamphlet to be provided by a licensee under AS 08.88.615 (a)(6); and (3) requirements for a broker's supervision of the real estate licensees who work for the broker. (c) Based on the content and format for the pamphlets established under (b)(2) of this section, a real estate broker shall produce and pay the costs to produce the actual pamphlets to be provided by licensees in the broker's business under AS 08.88.615 (a)(6). Sec. 08.88.690. Exemptions. A real estate licensee is exempt from the signature requirements of AS 08.88.600 — 08.88.695 when the licensee provides specific assistance to (1) a corporation that issues publicly traded securities; (2) a business that has a net worth in the previous calendar year of $2,000,000 or more, if the business requests the exemption from the licensee; or (3) a governmental agency; in this paragraph, “governmental agency” means a department, division, public agency, political subdivision, or other public instrumentality of the state or federal government, including the University of Alaska, the Alaska Railroad Corporation, the Alaska Housing Finance Corporation, the Alaska Industrial Development and Export Authority, and other public corporations. Sec. 08.88.695. Definitions for AS 08.88.600 — 08.88.695. In AS 08.88.600 — 08.88.695, (1) “compensation” includes a commission; (2) “confidential information” means information from or concerning a person that (A) the licensee acquired during the course of the licensee's relationship as a licensee with the person; (B) the person reasonably expects to be kept confidential; (C) the person has not disclosed or authorized to be disclosed to a third party; (D) would, if disclosed, operate to the detriment of the person; and (E) the person is not obligated to disclose to the other party in a real estate transaction; (3) “designated licensee” means (A) a real estate licensee who works for a real estate broker and represents or provides specific assistance to a person in a real estate transaction when another licensee who is working for the same broker represents or provides specific assistance to an unrepresented person in the same transaction; or (B) a real estate broker who represents or provides specific assistance to a person in a real estate transaction when another licensee who is working for the broker represents or provides specific assistance to another person in the same transaction; (4) “neutral licensee” means a real estate licensee who (A) provides specific assistance to both the buyer and the seller, or both the lessor and the lessee, in a real estate transaction; and (B) does not represent either party; (5) “personal services contract” includes a listing, a fee agreement between brokers and sellers, buyers, lessors, or lessees, a management contract with property owners, or any other agreement by which a broker agrees to perform a duty with respect to real estate for an agreed upon fee or commission; (6) “real estate services” means services related to a real estate transaction; (7) “represent” means to provide real estate services to a person if the services are not limited to specific assistance; (8) “specific assistance” (A) means (i) asking questions regarding confidential information for a real estate transaction; (ii) showing pieces of real estate selected for a buyer's or lessee's specific needs or desires; (iii) preparing a written offer for a real estate transaction; or (iv) entering into a personal services contract; (B) does not include (i) hosting an open house; (ii) casual conversation regarding real estate; (iii) receiving calls or electronic inquiries from the licensee's signs, advertisements, or Internet site; (iv) providing information regarding a piece of real estate; (v) setting an initial appointment to show a piece of real estate; (vi) receiving unsolicited information from a buyer or lessee before or after disclosure of a real estate relationship. Article 6. General Provisions. Sec. 08.88.900. Exceptions. (a) Except as provided in (b) of this section, this chapter does not apply to (1) a person who is not licensed under this chapter who manages or makes a real estate transaction with respect to real estate the person owns or is seeking to own so long as the compensation the person receives does not include any portion of the commission or other compensation paid to a real estate licensee in the transaction; (2) an attorney-in-fact under a power of attorney authorizing the consummation of a specific real estate transaction; an attorney-in-fact may not act as such under this paragraph for more than two transactions in a calendar year; (3) a lawyer performing duties as a lawyer; (4) a public official in the conduct of official duties; (5) a person acting as receiver, trustee, administrator, executor, or guardian; (6) a person acting under court order; (7) a person acting under the authority of a will or trust instrument; (8) a person dealing in mineral rights transactions; (9) an employee of a domestic or foreign corporation, general or limited partnership, or limited liability company when performing an act described in AS 08.88.161 incidental to the regular course of business when the act relates to the management, sale, or other disposition of real estate owned by the foreign or domestic corporation, general or limited partnership or limited liability company; the exemption under this paragraph does not apply to a person employed by a foreign or domestic corporation, partnership, limited partnership, or limited liability company who performs an act described in AS 08.88.161 either (A) as a vocation; or (B) for compensation if the amount of the compensation is dependent upon or directly related to the value of the real estate with respect to which the act is performed; (10) a person performing duties as a resident manager;

(11) a bookkeeper or accountant performing bookkeeping or accounting functions; (12) a secretary or receptionist in a real estate office accepting rent or association fees and providing a written receipt for the rent or fees when a tenant or community association member delivers the rent or fees to the real estate office; (13) tradesmen or vendors of services performing maintenance and repair functions; (14) an employee of a real estate firm or of a property owner delivering or accepting a real estate contract or application, or a related amendment, to or from another person; (15) an individual assisting in the performance of real estate activities only by carrying out administrative, clerical, or maintenance tasks; (16) the management of a total of four or fewer residential units by a natural person for other persons; (17) community association management for property organized under AS 34.07 or AS 34.08 by a resident owner of a unit in the property if the owner is a member of a self-managed community association for the property; (18) community association management by a developer of property organized under AS 34.07 or AS 34.08 during the period that the developer retains control of at least 51 percent of the property; (19) an attorney-in-fact who, for a relative, acts under a power of attorney that authorizes the consummation of a specific real estate transaction; in this paragraph, “relative” means a spouse or a great grandparent, grandparent, parent, uncle, aunt, sibling, child, nephew, niece, grandchild, or great grandchild by the whole or half blood or by marriage but does not include a relative who is only related through a step relationship, such as a stepbrother or the child of a stepbrother, except that “relative” includes a stepchild; (20) a mobile home dealer; or (21) the management by a natural person of property for another person without a fee other than the reimbursement of expenses. (b) Notwithstanding that, under this section, a person is exempt from this chapter, AS 08.88.401 (d)(1) prohibits a licensee from knowingly paying to that person any part of a fee, commission, or other compensation received by the licensee in buying, selling, exchanging, leasing, auctioning, or renting real estate. Sec. 08.88.910. Application to independent contractors. The provisions of this chapter that apply to employment relationships and employees also apply to contracting relationships and independent contractors. Sec. 08.88.990. Definitions. In this chapter, (1) “commission” means the Real Estate Commission except where the context indicates that “commission” refers to a fee paid for personal services; (2) “community association management” means an activity undertaken for an owners' association with regard to property organized under either AS 34.07 or AS 34.08 under an agreement in exchange for a fee, commission, or other valuable consideration, including the following activities: preparing budgets and other financial documents, collecting, controlling, or disbursing funds, obtaining insurance for the association, contracting for maintenance and repair to association property, and supervising the day-to-day operations of the association under the direction of the association's board of directors; (3) “community association operating account” means an account in a financial institution maintained in the name of a specific community association that contains money used for day-to-day operation and not for other uses; (4) “community association reserve account” means an account in a financial institution maintained in the name of a specific community association that contains money reserved for the expected replacement cost of improvements within the community association or for other future uses; (5) “final arbitration award” means an arbitration award for which there is no further right to appeal; (6) “final judgment” means a judgment for which there is no further right to appeal; (7) “initial license” (A) means the first (i) real estate broker license that the commission issues to a person, even if the person previously received an associate real estate broker license or real estate salesperson license under this chapter; (ii) associate real estate broker license that the commission issues to a person, even if the person previously received a real estate broker license or a real estate salesperson license under this chapter; (iii) real estate salesperson license under this chapter that the commission issues to a person, even if the person previously received a real estate broker license or an associate real estate broker license under this chapter; (iv) issuance of a license to an individual after the individual's license has been revoked under AS 08.01.075 ; (B) does not include the reinstatement of a license under AS 08.88.241 (b); (8) “knowingly” has the meaning given in AS 11.81.900 (a); (9) “lease” includes a lease that is a part of another transaction; (10) “property management” is an activity undertaken for another with regard to real property under an agreement in exchange for a fee, commission, or other valuable consideration, including the following activities: marketing, leasing, contracting for physical, administrative, or financial maintenance, performance of overall management of real property, and the supervision of these actions; (11) “real estate” means an interest or estate in land, corporeal or incorporeal, except that it does not include a unit in a hotel, motel, boarding house, rooming house, or other transient lodging facility, or a unit in a warehouse, mini-storage facility, or other facility the function of which is limited to warehousing purposes; (12) “real estate licensee” is a person who holds a license under this chapter; the term includes a broker unless the context clearly excludes brokers; (13) “real estate transaction” (A) in sales, means the transfer or attempted transfer of an interest in a unit of real property, an act conducted as a result of or in pursuit of a contract to transfer an interest in a unit of real property, or an act conducted in an attempt to obtain a contract to market real property; (B) in property management, means the lease or rental of a unit of real property, including collection of rent from a tenant of a unit of rented or leased real property, an attempt to rent or lease a unit of real property, an attempt to collect rent from a tenant of rented or leased real property, or an act conducted as a result of or in pursuit of a contract to manage a unit of leased or rented real property; (C) in community association management, means the collection or attempted collection of dues from a unit owner or an activity conducted as a result of or in pursuit of a contract with a community association to manage the affairs of a community association; (14) “resident manager” means a person who resides on rented or leased real property or on contiguous property owned by the same owner, manages the property for the benefit of another person, and is either employed by the owner of the real estate or employed by, or under contract with, a real estate licensee.