Amended in Senate June 8, 2016

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.begin insert The bill would exclude specified signs from these provisions.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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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, advertising flyers, 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.

P3    1(c) The provisions of this section shall not apply to classified
2rental advertisements reciting the telephone number at the premises
3of the property offered for rent or the address of the property
4offered for rent.

5(d) “Mortgage loan originator,” “unique identifier,” and
6“Nationwide Mortgage Licensing System and Registry” have the
7meanings set forth in Section 10166.01.

8(e) This section shall remain in effect only until January 1, 2018,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2018, deletes or extends that date.

11

SEC. 2.  

Section 10140.6 is added to the Business and
12Professions Code
, to read:

13

10140.6.  

(a) A real estate licensee shall not publish, circulate,
14distribute, or cause to be published, circulated, or distributed in
15any newspaper or periodical, or by mail, any matter pertaining to
16any activity for which a real estate license is required that does
17not contain a designation disclosing that he or she is performing
18acts for which a real estate license is required.

19(b) (1) A real estate licensee shall disclose his or her name,
20license identification number and unique identifier assigned to that
21licensee by the Nationwide Mortgage Licensing System and
22Registry, if that licensee is a mortgage loan originator, and
23responsible broker’s identity, as defined in Section 10159.7, on
24all solicitation materials intended to be the first point of contact
25with consumers and on real property purchase agreements when
26acting as an agent in those transactions. The commissioner may
27adopt regulations identifying the materials in which a licensee
28must disclose a license identification number and unique identifier
29assigned to that licensee by the Nationwide Mortgage Licensing
30System and Registry, and responsible broker’s identity.

31(2) For purposes of this section, “solicitation materials” include
32business cards, stationery, advertising flyers, advertisements on
33television, in print, or electronic media, “for sale,” rent, lease,
34“open house,” and directional signs, and other materials designed
35to solicit the creation of a professional relationship between the
36licensee and a consumer.

37(3) Nothing in this section shall be construed to limit or change
38the requirement described in Section 10236.4 as applicable to real
39estate brokers.

P4    1(c) This section shall not apply to “for sale,” rent, lease, “open
2house,” and directional signsbegin delete displaying onlyend deletebegin insert that do either of the
3following:end insert

4begin insert(1)end insertbegin insertend insertbegin insertDisplayend insert the responsible broker’s identity, as defined in
5Section 10159.7,begin delete or do not contain aend deletebegin insert withoutend insert reference tobegin delete a real
6estate licensee’s name.end delete
begin insert an associate broker or licensee.end insert

begin insert

7
(2) Display no licensee identification information.

end insert

8(d) “Mortgage loan originator,” “unique identifier,” and
9“Nationwide Mortgage Licensing System and Registry” have the
10meanings set forth in Section 10166.01.

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



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