Amended in Assembly March 28, 2016

Amended in Assembly February 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1650


Introduced by Assembly Member Frazier

January 12, 2016


An act to amend, repeal, and add Section 10140.6 of the Business and Professions Code, relating to real estate.

LEGISLATIVE COUNSEL’S DIGEST

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 the licensee and 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:

P2    1

SECTION 1.  

Section 10140.6 of the Business and Professions
2Code
is amended to read:

3

10140.6.  

(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, advertisingbegin delete fliers,end deletebegin insert flyers,end insert and other materials
24designed to solicit the creation of a professional relationship
25between the licensee and a consumer, and excludes an
26advertisement in print or 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.

9

SEC. 2.  

Section 10140.6 is added to the Business and
10Professions Code
, to read:

11

10140.6.  

(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 identification number and unique identifier assigned to that
19licensee by the Nationwide Mortgage Licensing System and
20Registry, if that licensee is a mortgage loan originator, and
21responsible broker’s identity, as defined in Section 10159.7, on
22all 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 identification number and unique identifier
27assigned to that licensee by the Nationwide Mortgage Licensing
28System and Registry, and responsible broker’s identity.

begin delete

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.

end delete
begin delete

33 32(3)

end delete

33begin insert(2)end insert For purposes of this section, “solicitationbegin delete 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,end delete
begin insert materials” include business cards,
37stationery, advertising flyers, advertisements on television, in print,
38or electronic media, “for sale,” rent, lease, “open house,” and
39directional signs, end insert
and other materials designed to solicit the
P4    1creation of a professional relationship between the licensee and a
2consumer.

begin delete

P4   1 3(4)

end delete

4begin insert(3)end insert Nothing in this section shall be construed to limit or change
5the requirement described in Section 10236.4 as applicable to real
6estate brokers.

7(c) This section shall not apply tobegin delete “open house”end deletebegin insert “for sale,” rent,
8lease, “open house,”end insert
and directional signs displaying only the
9responsible broker’s identity, as defined in Section 10159.7,begin delete that
10do not contain a reference to aend delete
begin insert or do not contain a reference to a
11real estateend insert
licensee’s name.

12(d) “Mortgage loan originator,” “unique identifier,” and
13“Nationwide Mortgage Licensing System and Registry” have the
14meanings set forth in Section 10166.01.

15(e) This section shall become operative on January 1, 2018.



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