AB 1650, as amended, 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 thebegin delete licensee, remove the identification of the mortgage loan originator and instead would require the inclusion ofend deletebegin insert licensee andend insert 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
P3 1of the property offered for rent or the address of the property
2offered for rent.
3(d) “Mortgage loan originator,” “unique identifier,” and
4“Nationwide Mortgage Licensing System and Registry” have the
5meanings set forth in Section 10166.01.
6(e) This section shall remain in effect only until January 1, 2018,
7and as of that date is repealed, unless a later enacted statute, that
8is enacted before January 1, 2018, deletes
or extends that date.
Section 10140.6 is added to the Business and
10Professions Code, to read:
(a) A real estate licensee shall not publish, circulate,
12distribute, or cause to be published, circulated, or distributed in
13any newspaper or periodical, or by mail, any matter pertaining to
14any activity for which a real estate license is required that does
15not contain a designation disclosing that he or she is performing
16acts for which a real estate license is required.
17(b) (1) A real estate licensee shall disclose his or her name,
18license identificationbegin delete numberend deletebegin insert
number and unique identifier
19assigned to that licensee by the Nationwide Mortgage Licensing
20System and Registry, if that licensee is a mortgage loan originator,end insert
21 and responsible broker’s identity, as defined in Section 10159.7,
22on all solicitation materials intended to be the first point of contact
23with consumers and on real property purchase agreements when
24acting as an agent in those transactions. The commissioner may
25adopt regulations identifying the materials in which a licensee
26must disclose a license identificationbegin delete numberend deletebegin insert number and unique
27identifier assigned to that licensee by the Nationwide Mortgage
28Licensing System and Registry,end insert and responsible broker’s identity.
29(2) A real estate licensee shall disclose his or her name and
30responsible broker’s identity, as defined in Section 10159.7, on
31“for sale,” rent, lease, “open house,” and directional signs.
23 32(2)
end delete
33begin insert(3)end insert For purposes of this section, “solicitation materials intended
34to be the first point of contact with consumers” includes business
35cards, stationery, advertising fliers, advertisements on television,
36in print, or electronic media,begin delete “for sale,” rent, lease, “open house,”
and other materials designed to solicit the
37and directional signs,end delete
38creation of a professional relationship between the licensee and a
39consumer.
30 40(3)
end delete
P4 1begin insert(4)end insert Nothing in this section shall be construed to limit or change
2the requirement described in Section 10236.4 as applicable to real
3estate brokers.
4(c) begin delete(1)end deletebegin delete end deleteThis section
shall not apply to “open house” and
5directional signs displaying only the responsible broker’s identity,
6as defined in Sectionbegin delete 10159.7.end deletebegin insert 10159.7, that do not contain a
7reference to a licensee’s name.end insert
8(2) This section shall not apply to “open house” and directional
9signs that do not contain a reference to a licensee’s name or
10responsible broker’s identity, as defined in Section 10159.7.
11(d) “Mortgage loan
originator,” “unique identifier,” and
12“Nationwide Mortgage Licensing System and Registry” have the
13meanings set forth in Section 10166.01.
1 14(d)
end delete15begin insert(e)end insert This section shall become operative on January 1, 2018.
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