SB 1171, as amended, Hueso. Real property transactions: agents: obligations.
Existing law requires listing and selling agents, as defined, to provide the seller and buyer in a residential real property transaction, including a leasehold interest, with a disclosure form, as prescribed, containing general information on real estate agency relationships. Existing law also requires the listing or selling agent to disclose to the buyer and seller whether he or she is acting as the buyer’s agent exclusively, the seller’s agent exclusively, or as a dual agent representing both the buyer and the seller.
This bill would extend these disclosure requirements to include transactions involving commercialbegin insert realend insert property, as defined, including a leasehold interest.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
The heading of Article 2 (commencing with
2Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of the 3Civil Code is amended to read:
4
Section 2079.13 of the Civil Code is amended to read:
As used in Sections 2079.14 to 2079.24, inclusive,
9the following terms have the following meanings:
10(a) “Agent” means a person acting under provisions of Title 9
11(commencing with Section 2295) in a real property transaction,
12and includes a person who is licensed as a real estate broker under
13Chapter 3 (commencing with Section 10130) of Part 1 of Division
144 of the Business and Professions Code, and under whose license
15a listing is executed or an offer to purchase is obtained.
16(b) “Associate licensee” means a person who is licensed as a
17real estate broker or salesperson under Chapter 3 (commencing
18with
Section 10130) of Part 1 of Division 4 of the Business and
19Professions Code and who is either licensed under a broker or has
20entered into a written contract with a broker to act as the broker’s
21agent in connection with acts requiring a real estate license and to
22function under the broker’s supervision in the capacity of an
23associate licensee.
24The agent in the real property transaction bears responsibility
25for his or her associate licensees who perform as agents of the
26agent. When an associate licensee owes a duty to any principal,
27or to any buyer or seller who is not a principal, in a real property
28transaction, that duty is equivalent to the duty owed to that party
29by the broker for whom the associate licensee functions.
30(c) “Buyer” means a transferee in a real property transaction,
31and includes a
person who executes an offer to purchase real
32property from a seller through an agent, or who seeks the services
33of an agent in more than a casual, transitory, or preliminary manner,
34
with the object of entering into a real property transaction. “Buyer”
35includes vendee or lessee.
36(d) “Commercial real property” means all real property in the
37state, except single-family residential real property, dwelling units
38made subject to Chapter 2 (commencing with Section 1940) of
P3 1Title 5, mobilehomes, as defined in Section 798.3, or recreational
2vehicles, as defined in Section 799.29.
3(d)
end delete
4begin insert(e)end insert “Dual agent” means an agent acting, either directly or
5through an associate licensee, as agent for both the
seller and the
6buyer in a real property transaction.
7(e)
end delete
8begin insert(f)end insert “Listing agreement” means a contract between an owner of
9real property and an agent, by which the agent has been authorized
10to sell the real property or to find or obtain a buyer.
11(f)
end delete
12begin insert(g)end insert “Listing agent” means a person
who has obtained a listing
13of real property to act as an agent for compensation.
14(g)
end delete
15begin insert(h)end insert “Listing price” is the amount expressed in dollars specified
16in the listing for which the seller is willing to sell the real property
17through the listing agent.
18(h)
end delete
19begin insert(end insertbegin inserti)end insert “Offering price” is the amount expressed in dollars specified
20in an offer to purchase for which the buyer is willing to buy the
21real property.
22(i)
end delete
23begin insert(j)end insert “Offer to purchase” means a written contract executed by a
24buyer acting through a selling agent that becomes the contract for
25the sale of the real property upon acceptance by the seller.
26(j)
end delete
27begin insert(k)end insert “Real property” means any estate specified by subdivision
28(1) or (2) of Section 761 in property that constitutes or is improved
29with one to four dwelling units, any commercialbegin delete property specified begin insert real property,end insert any
30in subdivision (a) or (b) of Section 1101.3,end delete
31leasehold in these types of property exceeding one year’s duration,
32and mobilehomes, when offered for sale or sold through an agent
33
pursuant to the authority contained in Section 10131.6 of the
34Business and Professions Code.
35(k)
end delete
36begin insert(l)end insert “Real property transaction” means a transaction for the sale
37of real property in which an agent is employed by one or more of
38the principals to act in that transaction, and includes a listing or
39an offer to purchase.
40(l)
end delete
P4 1begin insert(m)end insert “Sell,” “sale,” or “sold” refers to a transaction for the
2transfer of real property from the seller to the buyer, and includes
3exchanges of real property between the seller and buyer,
4transactions for the creation of a real property sales contract within
5the meaning of Section 2985, and transactions for the creation of
6a leasehold exceeding one year’s duration.
7(m)
end delete
8begin insert(end insertbegin insertn)end insert “Seller” means the transferor in a real property transaction,
9and includes an owner who lists real property with an agent,
10whether
or not a transfer results, or who receives an offer to
11purchase real property of which he or she is the owner from an
12agent on behalf of another. “Seller” includes both a vendor and a
13lessor.
14(n)
end delete
15begin insert(o)end insert “Selling agent” means a listing agent who acts alone, or an
16agent who acts in cooperation with a listing agent, and who sells
17or finds and obtains a buyer for the real property, or an agent who
18locates property for a buyer or who finds a buyer for a property
19for which no listing exists and presents an offer to purchase to the
20seller.
21(o)
end delete
22begin insert(end insertbegin insertp)end insert “Subagent” means a person to whom an agent delegates
23agency powers as provided in Article 5 (commencing with Section
242349) of Chapter 1 of Title 9. However, “subagent” does not
25include an associate licensee who is acting under the supervision
26of an agent in a real property transaction.
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