I 

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fair Choice and Com5 petition in Real Estate Act of 2005’’. 
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1 SEC. 2. CLARIFICATION THAT CERTAIN REAL ESTATE AC2 TIVITIES ARE FINANCIAL ACTIVITIES. 

3 (a) IN GENERAL.—Section 4(k)(4) of the Bank Hold4 ing Company Act of 1956 (12 U.S.C. 1843(k)(4)) is 

5 amended by adding at the end the following new subpara6 graph: 

7 ‘‘(J) Engaging in real estate brokerage ac8 tivities and real estate management activities.’’. 

9 (b) DEFINITIONS.—Section 2 of the Bank Holding 

10 Company Act of 1956 (12 U.S.C. 1841) is amended by 

11 adding at the end the following new subsection: 

12 ‘‘(r) DEFINITIONS RELATING TO FINANCIAL ACTIVI13 TIES.—

14 ‘‘(1) REAL ESTATE BROKERAGE ACTIVITY.—

15 The term ‘real estate brokerage activity’ means any 

16 activity that involves offering or providing real estate 

17 brokerage services to the public, including—

18 ‘‘(A) acting as an agent for a buyer, seller, 

19 lessor, or lessee of real property; 

20 ‘‘(B) listing or advertising real property for 

21 sale, purchase, lease, rental, or exchange; 

22 ‘‘(C) providing advice in connection with 

23 sale, purchase, lease, rental, or exchange of real 

24 property; 
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1 ‘‘(D) bringing together parties interested 

2 in the sale, purchase, lease, rental, or exchange 

3 of real property; 

4 ‘‘(E) negotiating, on behalf of any party, 

5 any portion of a contract relating to the sale, 

6 purchase, lease, rental, or exchange of real 

7 property (other than in connection with pro8 viding financing with respect to any such trans9 action); 

10 ‘‘(F) engaging in any activity for which a 

11 person engaged in the activity is required to be 

12 registered or licensed as a real estate agent or 

13 broker under any applicable law; and 

14 ‘‘(G) offering to engage in any activity, or 

15 act in any capacity, described in subparagraph 

16 (A), (B), (C), (D), (E), or (F). 

17 ‘‘(2) REAL ESTATE MANAGEMENT ACTIVITY.—

18 The term ‘real estate management activity’ means 

19 any activity that involves offering or providing real 

20 estate management services to the public, includ21 ing—

22 ‘‘(A) procuring any tenant or lessee for 

23 any real property; 

24 ‘‘(B) negotiating leases of real property; 
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1 ‘‘(C) maintaining security deposits on be2 half of any tenant or lessor of real property 

3 (other than as a depository institution for any 

4 person providing real estate management serv5 ices for any tenant or lessor of real property); 

6 ‘‘(D) billing and collecting rental payments 

7 with respect to real property or providing peri8 odic accounting for such payments; 

9 ‘‘(E) making principal, interest, insurance, 

10 tax, or utility payments with respect to real 

11 property (other than as a depository institution 

12 or other financial institution on behalf of, and 

13 at the direction of, an account holder at the in14 stitution); 

15 ‘‘(F) overseeing the inspection, mainte16 nance, and upkeep of real property, generally; 

17 and 

18 ‘‘(G) offering to engage in any activity, or 

19 act in any capacity, described in subparagraphs 

20 (A), (B), (C), (D), (E), or (F).’’.

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