Fair Choice and Competition in Real Estate Act of 2005

Fair Choice and Competition in Real Estate Act of 2005 - Amends the Bank Holding Company Act of 1956, restricting banking interests in nonbanking organizations, to declare that a bank holding company engaged in real estate brokerage and management transactions shall be considered to be engaged in activities that are financial in nature (therefore permissible).

Details real estate brokerage and management conduct permissible for bank holding companies.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2660 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2660

  To amend the Bank Holding Company Act of 1956 to clarify that real 
 estate brokerage activities and real estate management activities are 
  authorized financial activities for financial holding companies and 
   financial subsidiaries of national banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2005

 Mr. Oxley (for himself and Mr. Frank of Massachusetts) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Bank Holding Company Act of 1956 to clarify that real 
 estate brokerage activities and real estate management activities are 
  authorized financial activities for financial holding companies and 
   financial subsidiaries of national banks, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Choice and Competition in Real 
Estate Act of 2005''.

SEC. 2. CLARIFICATION THAT CERTAIN REAL ESTATE ACTIVITIES ARE FINANCIAL 
              ACTIVITIES.

    (a) In General.--Section 4(k)(4) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843(k)(4)) is amended by adding at the end the 
following new subparagraph:
                    ``(J) Engaging in real estate brokerage activities 
                and real estate management activities.''.
    (b) Definitions.--Section 2 of the Bank Holding Company Act of 1956 
(12 U.S.C. 1841) is amended by adding at the end the following new 
subsection:
    ``(r) Definitions Relating to Financial Activities.--
            ``(1) Real estate brokerage activity.--The term `real 
        estate brokerage activity' means any activity that involves 
        offering or providing real estate brokerage services to the 
        public, including--
                    ``(A) acting as an agent for a buyer, seller, 
                lessor, or lessee of real property;
                    ``(B) listing or advertising real property for 
                sale, purchase, lease, rental, or exchange;
                    ``(C) providing advice in connection with sale, 
                purchase, lease, rental, or exchange of real property;
                    ``(D) bringing together parties interested in the 
                sale, purchase, lease, rental, or exchange of real 
                property;
                    ``(E) negotiating, on behalf of any party, any 
                portion of a contract relating to the sale, purchase, 
                lease, rental, or exchange of real property (other than 
                in connection with providing financing with respect to 
                any such transaction);
                    ``(F) engaging in any activity for which a person 
                engaged in the activity is required to be registered or 
                licensed as a real estate agent or broker under any 
                applicable law; and
                    ``(G) offering to engage in any activity, or act in 
                any capacity, described in subparagraph (A), (B), (C), 
                (D), (E), or (F).
            ``(2) Real estate management activity.--The term `real 
        estate management activity' means any activity that involves 
        offering or providing real estate management services to the 
        public, including--
                    ``(A) procuring any tenant or lessee for any real 
                property;
                    ``(B) negotiating leases of real property;
                    ``(C) maintaining security deposits on behalf of 
                any tenant or lessor of real property (other than as a 
                depository institution for any person providing real 
                estate management services for any tenant or lessor of 
                real property);
                    ``(D) billing and collecting rental payments with 
                respect to real property or providing periodic 
                accounting for such payments;
                    ``(E) making principal, interest, insurance, tax, 
                or utility payments with respect to real property 
                (other than as a depository institution or other 
                financial institution on behalf of, and at the 
                direction of, an account holder at the institution);
                    ``(F) overseeing the inspection, maintenance, and 
                upkeep of real property, generally; and
                    ``(G) offering to engage in any activity, or act in 
                any capacity, described in subparagraphs (A), (B), (C), 
                (D), (E), or (F).''.
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