California Legislature—2015–16 Regular Session

Assembly BillNo. 1750

Introduced by Assembly Member Dodd

February 2, 2016

An act to amend Section 2079.13 of the Civil Code, relating to real property transactions.


AB 1750, as introduced, Dodd. Real property transactions: definitions.

Existing law defines various terms for the purposes of some, but not all, provisions relating to the duty owed to the prospective purchaser in transactions of commercial and residential real estate, including, but not limited to, the terms “agent,” “buyer,” “real property,” “sell,” “sale,” “sold,” and “seller.”

This bill would specify that those definitions also apply to the remaining provisions relating to the duty owed to the prospective purchaser.

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

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

P1    1


Section 2079.13 of the Civil Code is amended
2to read:



As used inbegin delete Sections 2079.14 to 2079.24, inclusive,end delete
4begin insert this article,end insert the following terms have the following meanings:

5(a) “Agent” means a person acting under provisions of Title 9
6(commencing with Section 2295) in a real property transaction,
7and includes a person who is licensed as a real estate broker under
P2    1Chapter 3 (commencing with Section 10130) of Part 1 of Division
24 of the Business and Professions Code, and under whose license
3a listing is executed or an offer to purchase is obtained.

4(b) “Associate licensee” means a person who is licensed as a
5real estate broker or salesperson under Chapter 3 (commencing
6with Section 10130) of Part 1 of Division 4 of the Business and
7Professions Code and who is either licensed under a broker or has
8entered into a written contract with a broker to act as the broker’s
9agent in connection with acts requiring a real estate license and to
10function under the broker’s supervision in the capacity of an
11associate licensee.

12The agent in the real property transaction bears responsibility
13for his or her associate licensees who perform as agents of the
14agent. When an associate licensee owes a duty to any principal,
15or to any buyer or seller who is not a principal, in a real property
16transaction, that duty is equivalent to the duty owed to that party
17by the broker for whom the associate licensee functions.

18(c) “Buyer” means a transferee in a real property transaction,
19and includes a person who executes an offer to purchase real
20property from a seller through an agent, or who seeks the services
21of an agent in more than a casual, transitory, or preliminary manner,
22with the object of entering into a real property transaction. “Buyer”
23includes vendee or lessee.

24(d) “Commercial real property” means all real property in the
25state, except single-family residential real property, dwelling units
26made subject to Chapter 2 (commencing with Section 1940) of
27Title 5, mobilehomes, as defined in Section 798.3, or recreational
28vehicles, as defined in Section 799.29.

29(e) “Dual agent” means an agent acting, either directly or
30through an associate licensee, as agent for both the seller and the
31buyer in a real property transaction.

32(f) “Listing agreement” means a contract between an owner of
33real property and an agent, by which the agent has been authorized
34to sell the real property or to find or obtain a buyer.

35(g) “Listing agent” means a person who has obtained a listing
36of real property to act as an agent for compensation.

37(h) “Listing price” is the amount expressed in dollars specified
38in the listing for which the seller is willing to sell the real property
39through the listing agent.

P3    1(i) “Offering price” is the amount expressed in dollars specified
2in an offer to purchase for which the buyer is willing to buy the
3real property.

4(j) “Offer to purchase” means a written contract executed by a
5buyer acting through a selling agent that becomes the contract for
6the sale of the real property upon acceptance by the seller.

7(k) “Real property” means any estate specified by subdivision
8(1) or (2) of Section 761 in property that constitutes or is improved
9with one to four dwelling units, any commercial real property, any
10leasehold in these types of property exceeding one year’s duration,
11and mobilehomes, when offered for sale or sold through an agent
12pursuant to the authority contained in Section 10131.6 of the
13Business and Professions Code.

14(l) “Real property transaction” means a transaction for the sale
15of real property in which an agent is employed by one or more of
16the principals to act in that transaction, and includes a listing or
17an offer to purchase.

18(m) “Sell,” “sale,” or “sold” refers to a transaction for the
19transfer of real property from the seller to the buyer, and includes
20exchanges of real property between the seller and buyer,
21transactions for the creation of a real property sales contract within
22the meaning of Section 2985, and transactions for the creation of
23a leasehold exceeding one year’s duration.

24(n) “Seller” means the transferor in a real property transaction,
25and includes an owner who lists real property with an agent,
26whether or not a transfer results, or who receives an offer to
27purchase real property of which he or she is the owner from an
28agent on behalf of another. “Seller” includes both a vendor and a

30(o) “Selling agent” means a listing agent who acts alone, or an
31agent who acts in cooperation with a listing agent, and who sells
32or finds and obtains a buyer for the real property, or an agent who
33locates property for a buyer or who finds a buyer for a property
34for which no listing exists and presents an offer to purchase to the

36(p) “Subagent” means a person to whom an agent delegates
37agency powers as provided in Article 5 (commencing with Section
382349) of Chapter 1 of Title 9. However, “subagent” does not
P4    1include an associate licensee who is acting under the supervision
2of an agent in a real property transaction.