AB 1650, as introduced, Frazier. Real estate licensees: advertisements.
Existing law, the Real Estate Law, governs the licensing and regulation of real estate licensees, as defined, as administered by the Real Estate Commissioner. Under those provisions, a real estate licensee is prohibited from publishing, circulating, distributing, or causing to be published, circulated, or distributed in any newspaper or periodical, or by mail, any matter pertaining to any activity for which a real estate license is required that does not contain a designation disclosing that the licensee is performing acts for which a real estate license is required. Existing law further requires a real estate licensee to include his or her license identification number and, if that licensee is a mortgage loan originator, the unique identifier assigned to that licensee, on the above-described circulations, distributions, publications, or mailings, on all solicitation materials, as described, and on all real property agreements when acting as an agent in those transactions. Existing law authorizes the Real Estate Commissioner to adopt regulations in that regard.
This bill, beginning January 1, 2018, would revise the disclosure requirements with regard to solicitation materials to require the inclusion of the name of the licensee, remove the identification of the mortgage loan originator and instead would require the inclusion of the responsible broker’s identity, and would revise the description of solicitation materials.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10140.6 of the Business and Professions
2Code is amended to read:
(a) A real estate licensee shall not publish, circulate,
4distribute, or cause to be published, circulated, or distributed in
5any newspaper or periodical, or by mail, any matter pertaining to
6any activity for which a real estate license is required that does
7not contain a designation disclosing that he or she is performing
8acts for which a real estate license is required.
9(b) (1) A real estate licensee shall disclose his or her license
10identification number and, if that licensee is a mortgage loan
11originator, the unique identifier assigned to that licensee by the
12Nationwide Mortgage Licensing System and Registry, on all
13solicitation materials intended to be the first point of contact with
14consumers and on real property purchase agreements when
acting
15as an agent in those transactions. The commissioner may adopt
16regulations identifying the materials in which a licensee must
17disclose a license identification number and, if that licensee is a
18mortgage loan originator, the unique identifier assigned to that
19licensee by the Nationwide Mortgage Licensing System and
20Registry.
21(2) For purposes of this section, “solicitation materials intended
22to be the first point of contact with consumers” includes business
23cards, stationery, advertising fliers, and other materials designed
24to solicit the creation of a professional relationship between the
25licensee and a consumer, and excludes an advertisement in print
26or electronic media and “for sale” signs.
27(3) Nothing in this section shall be construed to limit or change
28the requirement described in Section 10236.4 as applicable to real
29estate brokers.
30(c) The provisions of this section shall not apply to classified
31rental advertisements reciting the telephone number at the premises
32of the property offered for rent or the address of the property
33offered for rent.
P3 1(d) “Mortgage loan originator,” “unique identifier,” and
2“Nationwide Mortgage Licensing System and Registry” have the
3meanings set forth in Section 10166.01.
4(e) This section shall remain in effect only until January 1, 2018,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2018, deletes or extends that date.
Section 10140.6 is added to the Business and
8Professions Code, to read:
(a) A real estate licensee shall not publish, circulate,
10distribute, or cause to be published, circulated, or distributed in
11any newspaper or periodical, or by mail, any matter pertaining to
12any activity for which a real estate license is required that does
13not contain a designation disclosing that he or she is performing
14acts for which a real estate license is required.
15(b) (1) A real estate licensee shall disclose his or her name,
16license identification number and responsible broker’s identity, as
17defined in Section 10159.7, on all solicitation materials intended
18to be the first point of contact with consumers and on real property
19purchase agreements when
acting as an agent in those transactions.
20The commissioner may adopt regulations identifying the materials
21in which a licensee must disclose a license identification number
22and responsible broker’s identity.
23(2) For purposes of this section, “solicitation materials intended
24to be the first point of contact with consumers” includes business
25cards, stationery, advertising fliers, advertisements on television,
26in print, or electronic media, “for sale,” rent, lease, “open house,”
27and directional signs, and other materials designed to solicit the
28creation of a professional relationship between the licensee and a
29consumer.
30(3) Nothing in this section shall be construed to limit or change
31the requirement described in Section 10236.4 as applicable to real
32estate brokers.
33(c) (1) This section shall not apply to “open house” and
34directional signs displaying only the responsible broker’s identity,
35as defined in Section 10159.7.
36(2) This section shall not apply to “open house” and directional
37signs that do not contain a reference to a licensee’s name or
38responsible broker’s identity, as defined in Section 10159.7.
P4 1(d) This section shall become operative on January 1, 2018.
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